U.S. poverty rate 10.2% in 2025; median income hits record

The Census Bureau reported that the U.S. poverty rate fell to 10.2% in 2025 while real median household income reached a record $87,460. The figures cover the calendar year 2025 and predate a midyear surge in inflation and energy prices.

The agency said the poverty rate declined 0.5 percentage points from 2024, leaving about 34.5 million people below the official poverty line. Median household income rose 2.6%, from $85,210 in 2024 to $87,460 in 2025. The gains were concentrated at higher income levels: household income increased 1.7% at the 90th percentile, while there was no statistically significant change at the 10th percentile. The Gini index, a measure of income inequality, remained essentially unchanged.

Child poverty fell to 13.4%, a historic low, according to the report. Under the Supplemental Poverty Measure, which adjusts for taxes, tax credits and government benefit programs, the poverty rate held at 13.1%, statistically unchanged from 2024. The Census estimated that Social Security benefits alone kept about 28.8 million people above the Supplemental Poverty Measure threshold.

Treasury Secretary Scott Bessent cited the Census figures during testimony on Capitol Hill, where lawmakers pressed him on rising gasoline and mortgage costs.

Economic conditions shifted after the survey period. Consumer prices rose 3.4% in the 12 months through August 2026. Brent crude climbed above $100 a barrel and U.S. diesel reached about $6 per gallon. Mortgage borrowing costs also rose, with the 30-year fixed rate topping 7% in the most recent week.

The Bureau of Labor Statistics reported that real average hourly earnings fell 0.3% over the later period, while longer workweeks lifted real weekly earnings by 0.3%. Labor market indicators were mixed: employers added 162,000 jobs in August 2026, compared with an average monthly gain of about 31,000 over the prior year, and the unemployment rate stood at 4.1%.

Household debt continued to increase. Total outstanding household debt reached $18.8 trillion in the second quarter of 2026, with roughly 4.7% of balances in some stage of delinquency, according to the New York Federal Reserve.

Federal Reserve officials were weighing those conditions as they prepared a rate decision, and Fed Chair Kevin Warsh has expressed concern about upward pressure on inflation. The next official household income and poverty report will not be published until September 2027, leaving a gap between the 2025 snapshot and more recent economic developments.