American Household Income Smashes Record as Poverty Hits Historic Low

WHAT YOU NEED TO KNOW

• Real median household income climbed 2.6% to a record $87,460 in 2025, surpassing the previous peak reached in 2019.
• The national poverty rate fell to 10.2%, while child poverty reached an all time low of 13.4%.
• Median post tax household income increased 3.1% to $76,060.
• About 7.9% of the population, or 26.7 million people, lacked health insurance in 2025.
• Income rose 1.7% for the top 10% of earners but remained relatively flat for the bottom 10%.

Fresh US Census data delivered welcome economic news: American household income reached a record in 2025, while the nation’s poverty rate dropped to its lowest level ever.

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The developments covered issues ranging from tariffs to international conflicts, but the Census figures still showed household income moving higher.

Daniel Shoag, an economist and professor at Harvard University, described the wage figures as evidence of continued progress.

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“We would expect income to keep going up. We saw a spike during the pandemic and then some drops after that … and we’re starting to see those COVID effects going away,” he told The Post on Wednesday.

The income record was accompanied by another major development.

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Children also recorded a historic improvement under the Census measure.

Their poverty rate dropped to an all time low of 13.4%, adding another notable figure to the report’s positive results.

The Census Bureau also tracks a supplemental poverty line that includes noncash government benefits and taxes.

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That threshold provided the benchmark used for that household type.

Medical expenses remained a significant factor under the supplemental measure.

According to the Census Bureau, medical costs pushed 7.7 million more people below the supplemental poverty line in 2025.

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About 7.9% of the population remained uninsured during the year.

That represented 26.7 million people, though the uninsured rate was still near historic lows.

The report also showed different earnings trends for women and men.

Women’s paychecks increased 3.2% during 2025, while men’s paychecks dipped slightly, narrowing the wage gap by a small amount.

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Income for the top 10% of earners rose 1.7%, while income for the bottom 10% remained relatively flat.

The gap between those groups was also visible in their household income figures.

They also showed that earnings gains were not distributed evenly, with most of the increase occurring among top earners.

(*) Full article: https://www.lifezette.com/2026/09/american-household-income-smashes-record-as-poverty-hits-historic-low-watch/