40 Cities Where a $125K Income Isn’t Enough To Qualify as Middle Class
An annual income of $100,000 was once a gold standard of sorts. If you were making “six figures,” you had financially arrived. You were rich — or at least on solid economic ground.
These days, there are dozens of U.S. cities in which an annual income of $125,000 isn’t even enough to qualify for a spot in the middle class — much less upper middle, upper or filthy rich.
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There are different definitions of “middle class,” with varying lower and upper limits of annual income. Experts often use thresholds of two-thirds to double the annual income for your area. For example, if the median annual income where you live is $100,000, you qualify as middle class if you make between $67,000 and $200,000 a year.
Using that standard and the 2022 American Community Survey, GOBankingRates has created a list of 40 places in the U.S. where even $125,000 a year won’t qualify you for the middle class. To be included in the study, cities had to have a minimum of 5,000 households. The full methodology is included at the end of the story.
California tends to dominate lists like this, and this one is no exception. Sixteen of the 40 cities here are located in the Golden State. Virginia is next up with six. Massachusetts, New Jersey, New York and Texas each have three cities on the list.
Here is the list, ranked in order of highest median household income to lowest. For each city, the lowest annual income needed and the upper limit to qualify as middle class are included.
1. Wolf Trap, Virginia
Median household income: $246,563
Minimum income needed to be middle class: $164,375
Highest income to be middle class: $493,126
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2. Saratoga, California
Median household income: $237,730
Minimum income needed to be middle class: $158,487
Highest income to be middle class: $475,460
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3. Brambleton, Virginia
Median household income: $234,750
Minimum income needed to be middle class: $156,500
Highest income to be middle class: $469,500
4. Rye, New York
Median household income: $227,565
Minimum income needed to be middle class: $151,710
Highest income to be middle class: $455,130
5. Palos Verdes Estates, California
Median household income: $224,766
Minimum income needed to be middle class: $149,844
Highest income to be middle class: $449,532
6. Cupertino, California
Median household income: $223,667
Minimum income needed to be middle class: $149,111
Highest income to be middle class: $447,334
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7. Paradise Valley, Arizona
Median household income: $221,333
Minimum income needed to be middle class: $147,555
Highest income to be middle class: $442,666
8. San Carlos, California
Median household income: $219,413
Minimum income needed to be middle class: $146,275
Highest income to be middle class: $438,826
9. Lafayette, California
Median household income: $219,250
Minimum income needed to be middle class: $146,167
Highest income to be middle class: $438,500
10. Potomac, Maryland
Median household income: $218,710
Minimum income needed to be middle class: $145,807
Highest income to be middle class: $437,420
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11. Bellaire, Texas
Median household income: $215,636
Minimum income needed to be middle class: $143,757
Highest income to be middle class: $431,272
12. Vienna, Virginia
Median household income: $215,556
Minimum income needed to be middle class: $143,704
Highest income to be middle class: $431,112
13. Sammamish, Washington
Median household income: $215,047
Minimum income needed to be middle class: $143,365
Highest income to be middle class: $430,094
14. Palo Alto, California
Median household income: $214,118
Minimum income needed to be middle class: $142,745
Highest income to be middle class: $428,236
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15. Ridgewood, New Jersey
Median household income: $211,224
Minimum income needed to be middle class: $140,816
Highest income to be middle class: $422,448
16. La Cañada Flintridge, California
Median household income: $210,625
Minimum income needed to be middle class: $140,417
Highest income to be middle class: $421,250
17. Danville, California
Median household income: $209,518
Minimum income needed to be middle class: $139,679
Highest income to be middle class: $419,036
18. Franklin Farm, Virginia
Median household income: $209,442
Minimum income needed to be middle class: $139,628
Highest income to be middle class: $418,884
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19. Dix Hills, New York
Median household income: $209,217
Minimum income needed to be middle class: $139,478
Highest income to be middle class: $418,434
20. Fort Hunt, Virginia
Median household income: $209,135
Minimum income needed to be middle class: $139,423
Highest income to be middle class: $418,270
21. Winchester, Massachusetts
Median household income: $208,531
Minimum income needed to be middle class: $139,021
Highest income to be middle class: $417,062
22. Tenafly, New Jersey
Median household income: $207,652
Minimum income needed to be middle class: $138,435
Highest income to be middle class: $415,304
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23. Lexington, Massachusetts
Median household income: $206,323
Minimum income needed to be middle class: $137,549
Highest income to be middle class: $412,646
24. Needham, Massachusetts
Median household income: $206,261
Minimum income needed to be middle class: $137,507
Highest income to be middle class: $412,522
25. Garden City, New York
Median household income: $204,883
Minimum income needed to be middle class: $136,589
Highest income to be middle class: $409,766
26. Westfield, New Jersey
Median household income: $203,235
Minimum income needed to be middle class: $135,490
Highest income to be middle class: $406,470
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27. Mill Valley, California
Median household income: $202,986
Minimum income needed to be middle class: $135,324
Highest income to be middle class: $405,972
28. Lake Forest, Illinois
Median household income: $202,153
Minimum income needed to be middle class: $134,769
Highest income to be middle class: $404,306
29. Menlo Park, California
Median household income: $198,273
Minimum income needed to be middle class: $132,182
Highest income to be middle class: $396,546
30. Los Gatos, California
Median household income: $198,117
Minimum income needed to be middle class: $132,078
Highest income to be middle class: $396,234
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31. Colleyville, Texas
Median household income: $196,298
Minimum income needed to be middle class: $130,865
Highest income to be middle class: $392,596
32. Moraga, California
Median household income: $193,707
Minimum income needed to be middle class: $129,138
Highest income to be middle class: $387,414
33. Foster City, California
Median household income: $191,267
Minimum income needed to be middle class: $127,511
Highest income to be middle class: $382,534
34. Dublin, California
Median household income: $191,039
Minimum income needed to be middle class: $127,359
Highest income to be middle class: $382,078
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35. Mercer Island, Washington
Median household income: $190,985
Minimum income needed to be middle class: $127,323
Highest income to be middle class: $381,970
36. San Ramon, California
Median household income: $190,829
Minimum income needed to be middle class: $127,219
Highest income to be middle class: $381,658
37. Palm Beach, Florida
Median household income: $190,824
Minimum income needed to be middle class: $127,216
Highest income to be middle class: $381,648
38. Parkland, Florida
Median household income: $188,544
Minimum income needed to be middle class: $125,696
Highest income to be middle class: $377,088
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39. Steiner Ranch, Texas
Median household income: $188,405
Minimum income needed to be middle class: $125,603
Highest income to be middle class: $376,810
40. Ladera Ranch, California
Median household income: $188,299
Minimum income needed to be middle class: $125,533
Highest income to be middle class: $376,598
Methodology: For this piece, GOBankingRates used data from the 2022 American Community Survey to find cities in which an annual income of $125,000 would fall short of “middle class” status. Only cities with at least 5,000 households were considered. “Middle class” is defined as making between two thirds and double the average annual income for a given area. All data is up to date as of July 2, 2024.
Photo Disclaimer: Please note photos are for representational purposes only. As a result, some of the photos might not reflect the locations listed in this article.
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This article originally appeared on GOBankingRates.com: 40 Cities Where a $125K Income Isn’t Enough To Qualify as Middle Class