Median household income in the United States surpassed pre-pandemic levels in 2025, according to recently released Census Bureau data, signaling modest recovery in earnings after years of inflationary pressure. Adjusted for inflation, the median household income rose 2.6% from the previous year, reaching $87,460, the highest on record and exceeding the 2019 median of $85,320. The median represents the midpoint where half of households earn more and half earn less.

Despite this increase, the overall gain in income since 2019 remains limited, rising just 2.5% over six years. This contrasts with a 19% increase observed between 2013 and 2019, a period marked by low inflation and falling unemployment rates. The relatively slow income growth contributes to ongoing public concerns about affordability, an issue expected to influence voter sentiment in the upcoming midterm elections.

The data also highlights persistent disparities in earnings by gender, race, and income level. Women’s incomes grew by 3.2% in 2025, while men experienced a slight decline. As a result, the gender wage gap narrowed marginally, with women earning approximately 84 cents for every dollar earned by men, up from just under 81 cents in 2024. However, significant inequality remains.

Income inequality across the broader population continues to be pronounced. Households in the top 10% of earners posted a 1.7% income increase, reaching an average of $261,300. In contrast, the lowest income decile saw their median income decrease slightly to just over $20,000. Consequently, the top 10% now earn more than 13 times the income of the bottom 10%, a slight rise from 12.7 times in 2024 but below the peak ratio of 13.5 recorded in 2021.

Racial and ethnic income disparities also persist, though all groups reported some income growth last year. Asian households had the highest median income at $126,300, up 1.6% from 2024. White households’ median income increased 2.9% to $96,710, while Hispanic households reported a 1.1% rise to $73,260. Black households experienced the largest increase, with median income rising 4.8% to $59,980.

The Census Bureau’s income figures include all sources of cash income such as wages, investment returns, and government payments, including Social Security and unemployment benefits. However, noncash benefits like food assistance programs and Medicaid are excluded. A household is defined as either a family unit or individuals living alone or with nonrelatives.

While the upward trend in median household income reflects some recovery from the economic disruptions caused by the COVID-19 pandemic, the slow pace of growth and ongoing disparities underscore challenges facing many American households amid rising costs of living.