In a recent study conducted by Go Banking Rates, it has been revealed that the household income required to be considered middle class in California continues to fluctuate, but remains at a high level. The study utilized data from the U.S. Census Bureau's 2022 American Community Survey to determine the income thresholds for middle-class status in all 50 states.

According to the report, middle-class households in California are defined as those with an annual income that ranges between $61,270 to $183,810. This represents an increase of nearly 50% compared to the income thresholds in 2012, which stood at $40,933 to $122,800.

California ranks fourth among all states in terms of the percentage increase in income required to be considered middle class. Oregon takes the top spot with a 53.2% increase, followed by Washington and Colorado. On the other end of the spectrum, Alaska has the lowest percentage change in middle-class income requirements, at 23.53%.

It is worth noting that Mississippi has the lowest household income requirement for middle-class status. In the Magnolia State, residents would need to earn between $35,323 to $105,970 annually to be considered middle class.

The study highlights a significant shift in the income thresholds for middle-class status over the past decade. In 2012, a household income of $35,364 was sufficient to be part of the middle class in the United States. However, by 2022, the lowest minimum threshold had risen to $50,099.

The rising cost of living, economic changes, and inflation are cited as the primary factors contributing to the increase in income requirements for middle-class status. As the cost of housing, healthcare, and education continues to rise, households are being pushed into higher income brackets to maintain their middle-class lifestyles.

These findings shed light on the evolving economic landscape and the challenges faced by families aspiring to be part of the middle class in California and across the nation. As policymakers and economists consider strategies to address income inequality, understanding the changing middle-class income requirements is crucial.

As the future unfolds, it remains to be seen how these income thresholds will continue to fluctuate and impact the financial well-being of middle-class households in California and beyond.