This statistic shows the median household income in the United States from 1990 to 2023 in 2023 U.S. dollars. The median household income was 80,610 U.S. dollars in 2023, an increase from the previous year. Household incomeThe median household income depicts the income of households, including the income of the householder and all other individuals aged 15 years or over living in the household. Income includes wages and salaries, unemployment insurance, disability payments, child support payments received, regular rental receipts, as well as any personal business, investment, or other kinds of income received routinely. The median household income in the United States varies from state to state. In 2020, the median household income was 86,725 U.S. dollars in Massachusetts, while the median household income in Mississippi was approximately 44,966 U.S. dollars at that time. Household income is also used to determine the poverty line in the United States. In 2021, about 11.6 percent of the U.S. population was living in poverty. The child poverty rate, which represents people under the age of 18 living in poverty, has been growing steadily over the first decade since the turn of the century, from 16.2 percent of the children living below the poverty line in year 2000 to 22 percent in 2010. In 2021, it had lowered to 15.3 percent. The state with the widest gap between the rich and the poor was New York, with a Gini coefficient score of 0.51 in 2019. The Gini coefficient is calculated by looking at average income rates. A score of zero would reflect perfect income equality and a score of one indicates a society where one person would have all the money and all other people have nothing.

About 50.4 percent of the household income of private households in the U.S. were earned by the highest quintile in 2023, which are the upper 20 percent of the workers. In contrast to that, in the same year, only 3.5 percent of the household income was earned by the lowest quintile. This relation between the quintiles is indicative of the level of income inequality in the United States. Income inequalityIncome inequality is a big topic for public discussion in the United States. About 65 percent of U.S. Americans think that the gap between the rich and the poor has gotten larger in the past ten years. This impression is backed up by U.S. census data showing that the Gini-coefficient for income distribution in the United States has been increasing constantly over the past decades for individuals and households. The Gini coefficient for individual earnings of full-time, year round workers has increased between 1990 and 2020 from 0.36 to 0.42, for example. This indicates an increase in concentration of income. In general, the Gini coefficient is calculated by looking at average income rates. A score of zero would reflect perfect income equality and a score of one indicates a society where one person would have all the money and all other people have nothing. Income distribution is also affected by region. The state of New York had the widest gap between rich and poor people in the United States, with a Gini coefficient of 0.51, as of 2019. In global comparison, South Africa led the ranking of the 20 countries with the biggest inequality in income distribution in 2018. South Africa had a score of 63 points, based on the Gini coefficient. On the other hand, the Gini coefficient stood at 16.6 in Azerbaijan, indicating that income is widely spread among the population and not concentrated on a few rich individuals or families. Slovenia led the ranking of the 20 countries with the greatest income distribution equality in 2018.

The opening day payroll of teams in the MLB is calculated by combining the base salary, incentives, and any signing bonuses. At the beginning of the 2024 season, the New York Mets had the highest combined payroll in the league, amounting to around 305.62 million U.S. dollars. At the other end of the scale, the Oakland Athletics had an opening day payroll of just over 60 million U.S. dollars.

Pitchers take home the money The MLB has a minimum player salary in place to ensure that its professionals are rewarded for the work that they do. In 2023, the minimum salary for an MLB player was 720 thousand U.S. dollars per year, a significant increase from the minimum of 490 thousand U.S. dollars ten years earlier. However, the average player salary in the league in 2023 stood at 4.9 million U.S. dollars, around seven times the value of the minimum salary. This figure is skewed by the fact that the top earners in baseball take home significant amounts of money. Typically, it is the pitchers within a baseball team that earn the biggest wages due to their integral role. Indeed, pitchers dominated the list of highest earning players in the MLB and the New York Mets' starting pitcher Max Scherzer topped the list. The eight-time MLB All-Star took home a salary of over 43 million U.S. dollars in 2023.

MLB Luxury Tax In order to avoid such wealth disparity amongst the teams, Major League Baseball implements a luxury tax (or competitive balance tax). This tax is paid by any teams whose annual payroll exceeds the league limit which, in 2023, stood at 233 million U.S. dollars.