Here’s How Much You Have to Earn to Be ‘Middle Class’ in Indiana

Just how much do you have to earn to be considered "Middle Class" in Indiana?

What Defines "Middle Class?"

Before we look at how much has to be earned to be considered "Middle Class," let's look at what that term means. Pew Research defines the middle class as "those with an income that is two-thirds to double that of the U.S. median household income, after incomes have been adjusted for household size."

Is the Middle Class Shrinking?

Pew Research compared data from both 2023 and 1971. The data highlights the decline of the middle class. In 1971, 27% of Americans were considered lower income, 61% were labeled middle income and 11% of the population fell into the upper income. In 2023, both the lower and upper incomes increased to 30% and 19% respectively, resulting in a decrease in middle income households to 51%.

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The Median Household Income in the U.S. Has Increased by Nearly $50k

After adjusting for inflation, Pew Research says that the median income of a middle class household jumped 60% between 1970 and 2022, increasing from $66,400 to $106,100 annually.

Homes, Groceries, and Overall Inflation Are Up, Up, and Up

The team at AOL took a deep dive into a number of other sources including the Consumer Price Index, and the Case-Shiller U.S. National Home Price Index. They note that home prices have increased 52% in the 48 months between January 2020 and December 2024. Likewise, food prices went up 30% and inflation overall increased by 25%.

Six-Figures Doesn't Go As Far Anymore

Using all of the data, AOL was able to determine the low and high ends of the middle class for all 50 U.S. states. As AOL states, "a six-figure income may not stretch as far as it once did."

So Just How Much Do You Have to Earn to Be Middle Class in Indiana?

In Indiana, the median household income is $69,477. To that end, a household would need to earn $46,313 annualy to be the low-end threshold for middle class. Meanwhile, in the Hoosier State, $138,954 is the annual household income on the high end of being considered middle class.

[SOURCE: AOL; Pew Research]