SmartAsset’s annual study, “What It Takes to Be Middle Class in America,” just released.  We ranked all 50 states — plus 100 of the largest cities — to identify the income range needed to fall into the middle class. Surprisingly, Arizona households earning $162,972 are now considered middle class.

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Key findings for Arizona

  • Arizona ranks No. 20 in the nation for the highest income a household can earn and still be considered middle-class — $162,972. 
  • Meanwhile, it takes $54,324 to cross the lower threshold into middle class in Arizona.
  • In Gilbert, one of the cities in Arizona we tracked, the income range to be considered middle class is $83,312 to $249,936. 

Often, the expectations that come with the term “middle class” include reaching home ownership, raising kids, the comfort of modest emergency funds and retirement savings, and the occasional splurge or vacation. In practice, a Pew Research definition sets the bounds of the middle class at two-thirds to two-times the median income. And as the median household income varies widely across the U.S. depending on the local job market, housing market, infrastructure and other factors, so does swing the bounds on what constitutes a middle class income in America. 

With this in mind, SmartAsset ranked U.S. states and 100 of the largest cities based on the upper bound of middle class income, including the full range of what’s considered middle class in each location.

Key findings nationally

  • You can earn over $200k and still be middle class in five states. Massachusetts has the highest threshold to break out of the middle class, with the upper bounds at $209,656 per year. New Jersey is close behind with an upper bounds of $208,588 on the middle class, followed by Maryland ($205,810), Hawaii ($201,490), and California ($200,298).
  • Mississippi has the lowest statewide middle class income range at $39k to $118k. While the Magnolia State has the income bounds to be considered middle class nationwide, West Virginia ($40,532 to $121,596); Louisiana ($40,532 to $121,972); Arkansas ($41,404 to $124,212); and Kentucky ($43,017 to $129,052) also have particularly low entry points.
  • These Californian cities have the most competitive middle class incomes. Three of the top five cities with the highest bounds on a middle class income are in California, including San Jose in the number one spot with a middle class income range of $98,817 to $296,452. Irvine ranks second with a range of $97,154, while San Francisco ranks fourth at $93,201 to $279,602.
  • A middle class household may earn less than $35,000 in these cities. Two Ohio cities have the lowest income range to be considered middle class, with a lower qualifying bound of $28,922 in Cleveland and $33,708 annually in Toledo. Buffalo, NY households also need to earn just shy of $35,000 to meet the minimum middle class threshold.