Statistics

Economic Inequality Statistics: U.S. Income Distribution in 2024

Key 2024 U.S. inequality statistics covering income shares, percentiles, Gini indexes, taxes, and transfers.

Economic inequality statistics show how income is divided across households and how that distribution changes after taxes and transfers. In the United States in 2024, the highest household-income quintile received 52.2% of aggregate money income, while the lowest received 3.1%. On a post-tax basis, those shares were 48.6% and 3.8%, respectively. The Census measures below distinguish money income, post-tax income, and equivalence-adjusted measures that account for household size.

Contents

Pretax household income shares

The Census Bureau’s Table A-3. Income Distribution Measures Using Money Income and Equivalence-Adjusted Income: 2023 and 2024 reports the 2024 distribution of U.S. household money income. Money income is the pretax household measure used in this comparison.

The lowest income quintile received 3.1% of aggregate household money income. The second quintile received 8.2%, and the middle quintile received 13.9%. The fourth quintile received 22.6%, while the highest quintile received 52.2%. Thus, the top fifth’s reported share was more than half of aggregate household money income, while the bottom fifth’s share was a small single-digit percentage.

The top 5% received 23.1% of aggregate U.S. household money income in 2024. That narrower group’s share was less than the 52.2% received by the entire highest quintile, but it still represented nearly one-quarter of aggregate money income.

2024 household groupShare of aggregate money income
Lowest income quintile3.1%
Second income quintile8.2%
Third income quintile13.9%
Fourth income quintile22.6%
Highest income quintile52.2%
Top 5%23.1%

Source: Table A-3, Census Bureau, covering 2024 U.S. household money income.

Pretax percentiles and inequality ratios

Percentiles provide another way to describe the spread. The 10th percentile of U.S. household money income was $19,900 in 2024. The median was $83,730, and the 90th percentile was $251,000. These are household money-income thresholds for the specified points in the distribution, not measures of individual wages.

The money-income Gini index was 0.488 in 2024. The supplied Census table also reports a 90th-to-10th percentile ratio of 12.61, meaning the 90th-percentile household money income was 12.61 times the 10th-percentile amount. The 90th percentile was 3.00 times the median, while the median was 4.21 times the 10th-percentile income.

These ratios emphasize different parts of the distribution. The 90-to-10 ratio compares upper and lower endpoints represented here; the 90-to-median ratio focuses on the upper half relative to the center; and the median-to-10 ratio describes the distance between the center and lower endpoint. The Gini index summarizes the distribution using a separate inequality measure, so it should not be read as another percentile ratio.

Equivalence-adjusted income

Household size affects how far a given income can go. The Census Bureau therefore also reports equivalence-adjusted income measures. In the same 2024 U.S. table, the lowest equivalence-adjusted income quintile received 3.5% of aggregate income. The second quintile received 9.0%, the third 14.6%, and the fourth 22.4%. The highest equivalence-adjusted quintile received 50.5%, and the top 5% received 22.3%.

The equivalence-adjusted percentile levels were $30,280 at the 10th percentile, $112,700 at the median, and $310,800 at the 90th percentile. The equivalence-adjusted Gini index was 0.465. The 90th-to-10th ratio was 10.26, the 90th-to-median ratio was 2.76, and the median was 3.72 times the 10th-percentile income.

Compared with the household money-income figures, these equivalence-adjusted measures use a different income concept and should be interpreted separately. The distribution remains concentrated toward the top: the highest equivalence-adjusted quintile received 50.5% of aggregate income in 2024, compared with 3.5% for the lowest quintile.

Post-tax household income

Post-tax income changes the distribution by incorporating the Census Bureau’s post-tax measure. Table B-3. Distribution Measures Using Post-Tax Income and Equivalence-Adjusted Post-Tax Income: 2023 and 2024 reports the 2024 U.S. post-tax figures.

The lowest post-tax income quintile received 3.8% of aggregate household post-tax income. The second quintile received 9.4%, the third 15.0%, and the fourth 23.2%. The highest quintile received 48.6%, while the top 5% received 20.4%.

The corresponding post-tax household-income percentiles were $19,520 at the 10th percentile, $72,330 at the median, and $192,400 at the 90th percentile. The post-tax Gini index was 0.446. The 90th-to-10th ratio was 9.85, the 90th-to-median ratio was 2.66, and the median was 3.71 times the 10th-percentile income.

2024 measureMoney incomePost-tax income
Lowest quintile share3.1%3.8%
Highest quintile share52.2%48.6%
Top 5% share23.1%20.4%
10th percentile$19,900$19,520
Median$83,730$72,330
90th percentile$251,000$192,400
Gini index0.4880.446
90th-to-10th ratio12.619.85

Sources: Table A-3 and Table B-3, Census Bureau, 2024 U.S. measures.

Post-tax equivalence-adjusted income

When both post-tax income and household-size adjustment are used, the lowest equivalence-adjusted post-tax income quintile received 4.5% of aggregate U.S. income in 2024. The second quintile received 10.3%, the third 15.7%, and the fourth 22.8%. The highest quintile received 46.6%, and the top 5% received 19.6%.

The 10th percentile of equivalence-adjusted post-tax income was $32,280. The median was $97,290, and the 90th percentile was $238,400. The Gini index was 0.418. The 90th-to-10th ratio was 7.38, the 90th-to-median ratio was 2.45, and the median was 3.01 times the 10th-percentile income.

The four measures in the Census tables answer different questions. Money income describes the household distribution before the post-tax adjustment. Post-tax income describes the distribution after that adjustment. Equivalence-adjusted versions additionally account for household size. A comparison is meaningful only when the income concept and adjustment are kept clear.

For readers comparing the measures, the shares and ratios are distributional statistics rather than descriptions of a single typical household. A quintile contains one-fifth of households, while the top 5% is a narrower group within the upper end of the distribution. Percentile values identify positions in the ordered distribution; they do not say that every household in a group has the same income. The median divides the measured population into two equal-sized halves, and the 10th and 90th percentiles mark lower and upper reference points. The Gini index is reported on a zero-to-one scale in these tables, with the 2024 values shown above. Keeping those definitions separate helps prevent a household share, a percentile threshold, and an inequality index from being treated as interchangeable facts.

How taxes and transfers change inequality

The Census Bureau’s Table B-4. Distribution Measures Using Money Income, Post-Tax Income, Equivalence-Adjusted Income, and Equivalence-Adjusted Post-Tax Income: 2024 reports the change between money-income and post-tax measures.

For the lowest quintile, the income share rose from 3.1% using money income to 3.8% post-tax. Census reported that as a 23.3% increase. For the highest quintile, the share fell from 52.2% to 48.6%, a reported 7.0% decrease. The top 5% share fell from 23.1% to 20.4%, a reported 11.8% decrease.

The post-tax 10th-percentile household income was $19,520, compared with $19,900 for money income; Census reported the post-tax figure as 1.9% below the money-income figure. The post-tax median was $72,330, 13.6% below the $83,730 money-income median. The post-tax 90th percentile was $192,400, 23.4% below the $251,000 money-income figure.

The inequality indexes also narrowed under the post-tax measure. The post-tax household-income Gini was 0.446, reported as 8.7% below the money-income Gini of 0.488. The post-tax 90th-to-10th ratio was 9.85, 21.9% below the money-income ratio of 12.61. The post-tax 90th-to-median ratio was 2.66, 11.3% below 3.00, and the post-tax median-to-10th ratio was 3.71, 11.9% below 4.21.

These comparisons describe the 2024 U.S. distributions reported by Census and the measurement definitions used in its tables. They do not establish a trend across years or explain changes outside the reported measures. For the underlying publication, see Income in the United States: 2024.

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warcapitalismandliberty.org Editorial Team

Editorial team

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