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Home » Business » Income Rises, Poverty Falls in 2025, Census Reports

Income Rises, Poverty Falls in 2025, Census Reports

Census Bureau headquarters, Suitland, Maryland, 2007
By Digital News Editorial Team on September 15, 2026

The US Census Bureau released a set of reports Tuesday that show income levels rose and poverty decreased in 2025. The bureau reported that median household pretax income reached $87,460 for the year, a 2.6% increase from the previous year. This figure marked the highest level since the Census began tracking this data in 1967. Post-tax median household income also increased, reaching $76,060, a 3.1% rise from 2024. The official poverty rate fell 0.5 percentage points to 10.2%.

The share of people without health insurance for the full year stayed about the same as in 2024, according to lynnwoodtimes.com. Census said 26.7 million people, or 7.9% of the population, were uninsured for the entire year. Women’s pay still trails behind men’s, with women earning 84 cents for every dollar earned by men in full-time, year-round work, according to a report from nwlc.org. This is an improvement from 2024, when the ratio was 81 cents to the dollar. Census reported the female-to-male earnings ratio at 83.9% in 2025, up from 80.6% in 2024.

However, Black women saw their wage gap widen in 2025. In that group, Black women were paid just 64 cents for every dollar earned by white, non-Hispanic men. This was down from 65 cents in 2024 and 69 cents in 2022. Current Census-based analysis from the Center for American Progress also put the 2025 figure at 64 cents.

The Census data also showed that about 34.5 million people were living below the poverty line. About 34.5 million individuals remained below the poverty threshold in 2025.

The Supplemental Poverty Measure (SPM) was also released, though its published tables do not provide the same detailed demographic and state-level breakdowns available through the ACS. This measure gives a broader picture of resources available to families by including benefits such as SNAP and tax credits and accounting for taxes and some necessary expenses. The SPM rate was 13.1% in 2025 and was not statistically different from 2024. The delayed ACS release also limits current 2025 wage-gap calculations for American Indian, Alaska Native, Native Hawaiian and Pacific Islander women.

Separately, another key Census dataset, the American Community Survey (ACS), was delayed. The Census Bureau said the release date for the 2025 ACS 1-year estimates is still being determined. This delay affects the availability of state-level poverty and wage figures for many groups. The Census Bureau said the delay is tied to a June Department of Commerce order that changed the disclosure-avoidance methods allowed for new statistical products.

More than 100 organizations have urged the Commerce Department to resolve the delay, saying the ACS is important for state and local demographic and economic data. The 2025 Census reports cover income, poverty and health insurance conditions during calendar year 2025. The Congressional Budget Office estimates that Medicaid changes enacted in the 2025 reconciliation law will increase the number of people without health insurance by 7.5 million in 2034 compared with its prior baseline. Black women were especially affected in the earnings data, with their wage gap expanding compared to last year.

The National Women’s Law Center also pointed out that lower-income families are falling further behind. By 2024, these households were spending 95% of their pre-tax income on basic needs. The organization said the share was 87.5% in 2004.

The Census also released data using pooled tax years from 2023 through 2025, The Boston Globe reported. Massachusetts had the highest median household pretax income at $114,600 and the highest post-tax income at $95,530. Several other states were close to Massachusetts in both measures, within the margin of error. State income tax liability varied widely across the country, from $1,331 in North Dakota to $6,172 in Maryland.

The Census data comes from the 2026 Current Population Survey Annual Social and Economic Supplement. This survey collects information about households’ income, poverty status, and health insurance coverage for the previous calendar year, which corresponds to 2025. Income figures are reported as pretax unless otherwise noted and do not include in-kind benefits like food or housing. The bureau’s press kit includes additional materials related to income, poverty, and health insurance data.

Despite the gains in income and a drop in poverty, experts warn that these improvements may not last. They point to changes in federal policy and cuts to programs like Medicaid as possible threats to continued progress. CBO projects that the Medicaid provisions of the 2025 reconciliation law will reduce future enrollment compared with its earlier baseline.

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