Rich families are able to devote a much bigger chunk of their spending to education, and a much, much bigger share to saving for retirement. On this page is the United States average individual income by year and median individual income by year between 1962 and 2022. Updated December 29, 2022 Reviewed by Eric Estevez Fact checked by Daniel Rathburn The income effect may have positive or negative consequences on a small business, depending on many factors.. After: You can find the household income by year research here. This data breaks households into quintiles (groups of 20%) by income. Poverty: The official poverty rate in 2020 was 11.4 percent, up 1.0 percentage point from 10.5 percent in 2019. , We use total household income before taxes in the CE to define the income groups. Then you can access your favorite statistics via the star in the header. Below I've listed the estimated top 5% individual income per year in the United States. You can learn more about the standards we follow in producing accurate, unbiased content in our. The CE program provides these data in tables , LABSTAT database , news releases , reports, and public use microdata files. Here is the most dramatic difference by far. On average, people in these groups spend more money than they make. dollars)." Looking at the 60 to 80 percent quintile, those households saw an increased consumption expenditure of $4,441 (for the 2019 bundle) or $4,351 (for the 2020 bundle), representing an increase of 6.8 percent. and over 1Mio. The CPI measures the average change over time in the prices paid by consumers for goods and services. In, Bureau of Labor Statistics. Summary: We estimate that inflation in 2021 will require the average U.S. household to spend around $3,500 more in 2021 to achieve the same level of consumption of goods and services as in recent previous years (2019 or 2020). Heres how different income groups spend their money each in a year. Household Expenditures by Income Level . The median income for U.S. households in 2020 was $67,521 in 2020, a decrease of 2.9% from the previous year. You'll also find the top 1% individual income by year between 1996 and 2022, as well as the top 5% and 10%. The Census Bureautweaked their income questions [PDF]. But what happens when the data rambles on and on? Figure 2 shows the share of household expenditure on each major category of items by income groups in 2019 and in 2020. A better representation is the median, whereby 50% of incomes appear below the median and 50% above it. Experts see this as largely a response to the COVID-19 pandemic that first struck in early 2020. However, the increases in price were uneven across items in the CPI basket. Because it takes more than one year to fully collect such data, and because some people have January birthdays, the age 62 calculation done in 2006 must be based on the most recent data which is the 2004 national average wage. The top-coding and methodology changes in the 1990s muddy the waters some, but the tool is very useful especially for the 95th percentile and below. Heres what people spend their money on in a year, grouped by income level. This statistic is not included in your account. You need at least a Starter Account to use this feature. The takeaway: we've seen broad gains across the income spectrum. dollars)." As soon as this statistic is updated, you will immediately be notified via e-mail. Be sure to read the methodology if you use inflation-adjustments. Chart. Earnings in all years prior to two years before the current year are indexed for inflation. See, Individual Income by Year: Average, Median, One Percent, and a Percentile Calculator, Individual Income Percentile by Year Calculator, Individual Income Percentile Statistics from 1962-2022, Other Individual Income by Year Questions. to incorporate the statistic into your presentation at any time. BEA Data Consumer Spending Consumer Spending Consumer Spending The nation's primary measure of consumer spending, or personal consumption expenditures Consumer Spending by State Spending by residents of the 50 states and D.C. Real Consumer Spending by State Consumer spending adjusted for state price level differences and national inflation Data and discussion on total national household spending on transportation are also available. In your head, assume average income is a few dollars more per year before 1996. You'll again find both inflation adjusted and nominal numbers. , Increase in expenditure from higher prices, H.R. Lets look closer at each of the larger spending categories. This compensation may impact how and where listings appear. We can find out what the U.S. citizen's average income is with the U.S. Census Bureau's data, which is collected annually. An unemployment claim is a request an individual makes to a state government to receive temporary payments after having been laid off from a job. Some towards lower. While it is not an actual expenditure on the households budget, owners equivalent rent represents foregone income whose loss becomes larger as rental costs increase. Heck, just picking the right inflation adjustment is controversial. "Median household income in the United States in 2020, by state.". In this article, the average wage is adjusted for living expenses "purchasing power parity" (PPP).This is not to be confused with the average income which is a measure of total income including wage, investment benefit, and other capital gains divided by total number of people in the . She said levels of absence in schools were now "a crisis", with recent . Because there are often a very small number of very wealthy individuals with very high incomes (e.g. This statistic shows the average household food expenditure by income in the United States in 2021. Profit from the additional features of your individual account. Owners equivalent rent is an implied opportunity cost from living in housing owned by the household instead of renting it out. The Northeast is the most affluent part of the U.S., where the median household income was $75,211. Available: https://www.statista.com/statistics/241012/average-us-household-food-expenditures-by-income/, Average household food expenditure in the United States in 2021, by income*, Immediate access to statistics, forecasts & reports, Growth in grocery stores weekly visits U.S. 2023, Growth in grocery sector monthly visits U.S. 2023, Groceries shopping choice between in-store and online in the United States 2022, Grocery shopping by store type in the U.S. 2023, Grocery shopping by store brand in the U.S. 2023, Primary channels for U.S. grocery shoppers October 2021 to April 2022*, Average annual food at-home expenditure of U.S. households 2000-2021, Average annual food at-home expenditure in the U.S. by category 2002-2021, Average household food expenditure in the U.S. by income 2021, Average food at home expenditure in the U.S. 2021, by household size, Average weekly online grocery expenditure in the U.S. 2021, Change in spending on groceries U.S. 2022, Change in spending on groceries U.S. 2022, by household size, Perceived change in grocery spending among adults in the U.S. 2022, by income, Frequency consumers cut back on grocery shopping because of higher prices U.S. 2023, Actions to reduce grocery spending among consumers in the United States 2022, Grocery products consumers cut back on due to inflation by category in the U.S. 2022, Consumers worried about cost of groceries U.S. 2022, by category, Purchase criteria for food in the U.S. 2023, Impacts on consumers food purchasing decisions in the U.S. in 2021, by factor, Importance of labeling on food purchasing decisions in the U.S. in 2021, by type, Nutrition facts label information consumers look at the most U.S. 2022, Online grocery & beverage shopping by store brand in the U.S. 2023, Groceries & beverages purchased online by category in the U.S. 2023, Usage rates of online grocery delivery methods in the U.S. 2021, by product, Relevant features of online food and grocery delivery services in the U.S. 2021, Top reasons for impulsive online shopping of grocery products in the U.S. 2022, Categories online grocery shoppers skip in the U.S. in 2021, Average food at-home household expenditure in the U.S. 2021, by income, Average household food expenditure in the U.S. 2021, Average food at home household expenditure in the U.S. 2021, Average U.S. food at home household expenditure 2021, Change in spending on in-home food in the past year in Canada 2015, Expenditure on vegetables in the United Kingdom 2005-2022, French households average expenditure on food by type of product 2015-2017, Food and drink: Weekly household expenditure in the United Kingdom (UK) 2017, by age, Food: Weekly household expenditure in the United Kingdom (UK) 2017/18, by age, Italy: year-on-year change in household spending on food 2017, by product, Year-on-year food expenditure in Spanish households 2020, by product, Year-on-year growth of food prices at Christmas Spain 2018, Price of fish and seafood at Christmas in Spain 2015-2018, Price of meat at Christmas in Spain 2015-2018, Sales volume of selected party foods in Canada 2014, Purchase criteria for food in Finland 2023, Industry revenue of all other specialty food stores in New Jersey 2012-2024, Online grocery shopping in the United States, U.S. generations: grocery shopping behavior, Online grocery shopping in the United Kingdom (UK), Average household food expenditure in the United States in 2021, by income* (in U.S. dollars), Find your information in our database containing over 20,000 reports. How It Works, Unemployment Claim: Meaning, COVID-19, FAQs, Child Tax Credit Definition: How It Works and How to Claim It, Generational Wealth: Overview, Examples and FAQs, What Is Income Per Capita? For a family of three, that ranges from $52,200 to $156,600 when the 2018 incomes used in a Pew study are adjusted for inflation from 2018 to 2021, according to Rakesh Kochhar, senior researcher . Learn more about how Statista can support your business. Factors influencing the purchase decision, Revenue of the cosmetic & beauty industry in the U.S. 2002-2022, Value of the leading global textile exporters in 2021, by country, Vegetable oils: global consumption 2013/14 to 2022/23, by oil type, Cocoa bean production worldwide 2020/2021-2022/2023, by country, World coffee per capita consumption: major consumer countries 2015, Cosmetics industry in the U.S. - statistics & facts, Research expert covering food & agriculture in the UK & Europe, Profit from additional features with an Employee Account. Bureau of Labor Statistics. In this version, for older years, I only use variables which are available back to 1962. Poor, middle class and rich families spend similar shares of their budgets on clothing and shoes, and on food outside the home. As soon as this statistic is updated, you will immediately be notified via e-mail. Of particular note is the fact that the poverty rate rose to 11.4%, up 1.0 percentage point from 10.5% in 2019. The best of the best: the portal for top lists & rankings: Strategy and business building for the data-driven economy: Industry-specific and extensively researched technical data (partially from exclusive partnerships). (But we do have plenty of years to scoff at!). The ideal entry-level account for individual users. I've got you. See the FAQ note below regarding 1962-1995 top 1% income data. This is done by multiplying the amount credited to the Social Security earnings record in any given year by an indexing factor. Each calendar year, the wages of each covered worker[a] up to the Social Security Wage Base (SSWB) are recorded along with the calendar by the Social Security Administration. The figures show a continued gender gap in terms of pay, with women earning substantially less than men in 2020. 1. Average size of a family in the US 1960-2022, Number of births in the United States 1990-2021, Number of Black single mothers U.S. 1990-2021, Number of U.S. children living in a single parent family 1970-2022, Facebook: quarterly number of MAU (monthly active users) worldwide 2008-2023, Quarterly smartphone market share worldwide by vendor 2009-2023, Number of apps available in leading app stores Q3 2022, Profit from additional features with an Employee Account. Accessed July 17, 2023. https://www.statista.com/statistics/241012/average-us-household-food-expenditures-by-income/, Bureau of Labor Statistics. Let the data speak they say. Figure 3: Increase in expenditure by consumption category across income groups. As of 2020, the U.S. state with the highest median income is Maryland, at $93,384. Currently, you are using a shared account. Then you can access your favorite statistics via the star in the header. To keep the methodology constant, I don't attempt to model the top 1% for that time-frame you'll have to look elsewhere. Although this was a decrease in spending from 2021, total home services spending was relatively flat compared to 2020 and increased 42% since our 2019 State of Home Spending . The upper percentiles comprised of people who generally save more money are affected less by inflation than the middle of the curve (in fact, if they are investors they may come out on top). Lower-income groups spent relatively more on food, energy, and shelter, while higher-income groups spent relatively more on other commodities and services. Because the U.S. government passed a series of stimulus measures including the Coronavirus Aid, Relief, and Economic Security Act (CARES Act) and the Coronavirus Response and Relief Supplemental Appropriations Act (CRRSA Act), household income did not drop as much as it could have. Average. Total annual average household expenditures and associated income increased with the age of the reference person from the under-25 age group to the 35-44 group, which was not statistically different from the 45-54 group. Make them move to show a shift in distributions over time. Directly accessible data for 170 industries from 150+ countries [Online]. She holds a Bachelor of Science in Finance degree from Bridgewater State University and helps develop content strategies for financial brands. In 2021, U.S. consumers spent an average of 10.3 percent of their disposable personal income on fooddivided between food at home (5.2 percent) and food away from home (5.1 percent). The lowest-earning state by median income was Mississippi, at $44,966. At this point, youre probably familiar with the increased spending in each category as you increase the income. Spending by residents of the 50 states and D.C. Consumer spending adjusted for state price level differences and national inflation, Measures inflation in the prices paid by people living in the United States, The core PCE price index excludes two volatile categories to reveal underlying inflation, 4600 Silver Hill Road Suitland, MD 20746, Personal Consumption Expenditures Price Index, Personal Consumption Expenditures Price Index, Excluding Food and Energy. Two or more persons living together who use their incomes to make joint expenditure decisions. The share of disposable personal income spent on total food has trended downward since 1961driven by a decline in share of income spent on food at home. If you are an admin, please authenticate by logging in again. The average wage is a measure of total income after taxes divided by total number of employees employed. As in other tables, you'll find both non inflation-adjusted and inflation-adjusted numbers. Figure 2: Expenditure shares on major groups of items by income groups in 2019 and 2020. In that year, households with an income range of 30,000 to. Financial independence is determined by spending behavior with regard to the three major expense categories: housing, food, and other living expenses. Figure 3 shows the increase in the average expenditure by consumption category and by income groups due to higher prices over the year ended in November 2021 under each of the two assumptions on consumption patterns.4 Due to their higher spending, we find that higher-income groups had a bigger increase in expenditure across all five categories. The highest earners of all were Americans of Asian descent, at $94,903 per year. Available: https://www.statista.com/statistics/825887/us-annual-household-expenditures-by-generation/, Mean annual household expenditures in the United States in 2021, by generation, Immediate access to statistics, forecasts & reports, U.S. annual household expenditures 2021, by generation, Main channels to buy products for consumers the U.S. 2022, by generation, U.S. consumers concerned about ability to spend due to inflation 2023, by generation, U.S. consumers planning to budget due to financial concerns 2023, by generation, Share of U.S. consumers who buy products due to brand trust 2022, by generation, Gen Z and millennial consumers expectations from AR apps when shopping U.S. 2022, Cost of living crisis: Most relevant social networks for Millennials in the U.S. 2023, Favorite brands, products, and services among U.S. millennials 2021, Shopping channel preference among millennials & Gen Z for car parts in the U.S. 2023, Shopping channel preference among U.S. millennials & Gen Z for kids' products 2023, Shopping channel preference among U.S. millennials & Gen Z for clothes and shoes 2023, Shopping channel preference among U.S. millennials & Gen Z for groceries 2023, Shopping channel preference among U.S. millennials & Gen Z for beauty products 2023, Shopping channel preference among U.S. millennials & Gen Z for home & garden 2023, Shopping channel preference among U.S. millennials & Gen Z for jewelry 2023, Shopping channel preference among U.S. millennials & Gen Z for hobby products 2023, Leading beauty shops among Gen Z in the U.S. 2022, Leading cosmetics brands among Gen Z in the U.S. 2022, Leading skincare brands among Gen Z in the U.S. 2022, U.S. Gen Z clothes shopping frequency 2022, by gender, Considerations when choosing apparel for Gen Z in the U.S. 2022, Products that U.S. Gen Z and Millennials buy more due to social media 2021, Expected spending on the holiday season in the U.S. 2022, by generation, Average planned holiday season spend on family in the U.S. 2022, by generation, Average planned holiday season spend on friends in the U.S. 2022, by generation, Average amount U.S. generations will spend on themselves during the holidays 2022, Holiday gift card spending plans in the U.S. 2022, by generation, Share of Black Friday spend among Gen Z and millennials in the U.S. 2021, by channel, Brazil: distribution of households led by women 2017, by age, U.S. mean disposable household income by age 2021, Households in Denmark 2023, by number of children, French households average expenditure on food by type of product 2015-2017, Number of households in Australia 2016-2041, Average spending on fruits of French households by type of fruits 2015-2017, Number of households with a cat or a dog in France 2017, Share of families with stock holdings in the U.S. 1989-2016, Breakdown of the volume of cheese purchased by French households 2021, by cheese type, Households of Saudi nationals in Saudi Arabia 2018, by area, Average number of pets in French households 2017, by type, Number of households in Iceland 2004-2013, Per capita disposable income of rural households in China 2021, by income group, UK households: expenditure per head including spending by Government 2008-2012, Public permanent housing household distribution in Hong Kong 2010-2021, by district, Average number of devices per households in Norway 2018, U.S. Gen Z & millennials: consumer goods and shopping behavior, Online grocery shopping in the United States, U.S. generations: grocery shopping behavior. (September 8, 2022). "Average Household Food Expenditure in The United States in 2021, by Income* (in U.S. and over 1Mio. Please create an employee account to be able to mark statistics as favorites. Show publisher information Figure 1: Total expenditure by income groups in 2019 and 2020. Week Calculator: How Many Weeks Between Dates? In 2021, the average annual expenditures of American households amounted to about 66,928 U.S. dollars per year, reflecting an increase of around nine percent on the previous year. The overall index went up by 6.8 percent from a year ago, and this level of inflation was last seen in 1982. Lockdowns, business closures, a reduction in travel, and layoffs all contributed. Assuming the fixed 2020 bundle, these increases change to $2,160 and $7,636 respectively. The typical rate for MPs is 17 times the national average - and more than 22 times higher than the minimum hourly wage. Bureau of Labor Statistics. Because we hold consumption patterns fixed for this analysis, we do not account for income effects, i.e., any consumption changes due to changing purchasing power, and substitution effects, i.e., any consumption changes due to changing relative prices. The less equal the distribution, the greater the income inequality. Economists like to look at changes in the gross domestic product (GDP) when assessing the health of the economy. September 8, 2022. Nils-Gerrit Wunsch. For example, in 2016, $3,000.00 of wages earned during 1961 would be factored by multiplying the wages by the 2016 wage index divided by the 1961 wage index. Income inequality refers to how unevenly income is distributed in a population. The figures in the graph come from the Consumer Expenditure Survey, which has tons of data on spending patterns in the U.S. Table. The methodology here is different than our individual income research and individual income calculator.