U.S. household income reached a record high in 2025, according to new data from the U.S. Census Bureau. The real median household income rose 2.6% to $87,460, marking the highest inflation-adjusted level since records began in 1967. However, lower earners did not experience similar gains, with income among the bottom 10% showing no significant change. The official poverty rate fell to 10.2%, affecting approximately 34.5 million people, while child poverty decreased to a record-low 13.4%. Despite these improvements, income inequality remains evident, as the wealthiest 10% saw a 1.7% increase in income, capturing 52.4% of all household income, while the bottom fifth earned just 3%.
The report highlights a disparity among racial and ethnic groups, with Asian American households having the highest median income at $126,300, followed by white households at $91,930 and Black American households at $59,980. Hispanic poverty fell to its lowest level since tracking began in 1973, but median household income for Hispanics remained unchanged at $73,260. The Supplemental Poverty Measure, which accounts for various expenses, held steady at 13.1%, indicating that broader measures of hardship suggest that many Americans continue to face financial challenges. Health insurance coverage remained stable, with an uninsured rate of 7.9% in 2025, while Medicaid coverage decreased slightly, affecting approximately 1.4 million fewer people compared to the previous year. Experts suggest that the 2025 data may serve as a critical benchmark before potential federal safety-net cuts impact future reports.