The ratio of the top 20 percents' income to that of the bottom ** percent of earners is a common way to measure income inequality. In the European Union, this ratio was **** before taxes and **** after taxes in 2024. Many European countries are known for their progressive taxation systems and strong social benefits, meaning that post-taxes and social transfers, their income inequality is much lower than what it is in gross terms. This is particularly the case for countries such as *******, which has the second-highest gross income inequality between its highest earners and lowest earners, but has the fourth-highest inequality ratio when taxes and transfers are factored in. The country with the smallest disparity between high and low earners in Europe was ******* in 2024, with a gross ratio of 4.78 and a net ratio of ****

In 2023, just over 50 percent of Americans had an annual household income that was less than 75,000 U.S. dollars. The median household income was 80,610 U.S. dollars in 2023. Income and wealth in the United States After the economic recession in 2009, income inequality in the U.S. is more prominent across many metropolitan areas. The Northeast region is regarded as one of the wealthiest in the country. Maryland, New Jersey, and Massachusetts were among the states with the highest median household income in 2020. In terms of income by race and ethnicity, the average income of Asian households was 94,903 U.S. dollars in 2020, while the median income for Black households was around half of that figure. What is the U.S. poverty threshold? The U.S. Census Bureau annually updates its list of poverty levels. Preliminary estimates show that the average poverty threshold for a family of four people was 26,500 U.S. dollars in 2021, which is around 100 U.S. dollars less than the previous year. There were an estimated 37.9 million people in poverty across the United States in 2021, which was around 11.6 percent of the population. Approximately 19.5 percent of those in poverty were Black, while 8.2 percent were white.

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.

Graph and download economic data for Expenditures: Total Average Annual Expenditures by Quintiles of Income Before Taxes: Lowest 20 Percent (1st to 20th Percentile) (CXUTOTALEXPLB0102M) from 1984 to 2023 about percentile, tax, average, expenditures, income, and USA.

Mexico MX: Income Share Held by Lowest 20% data was reported at 5.700 % in 2016. This records an increase from the previous number of 5.400 % for 2014. Mexico MX: Income Share Held by Lowest 20% data is updated yearly, averaging 4.500 % from Dec 1984 (Median) to 2016, with 15 observations. The data reached an all-time high of 5.700 % in 2016 and a record low of 3.900 % in 2000. Mexico MX: Income Share Held by Lowest 20% data remains active status in CEIC and is reported by World Bank. The data is categorized under Global Database’s Mexico – Table MX.World Bank.WDI: Poverty. Percentage share of income or consumption is the share that accrues to subgroups of population indicated by deciles or quintiles. Percentage shares by quintile may not sum to 100 because of rounding.; ; World Bank, Development Research Group. Data are based on primary household survey data obtained from government statistical agencies and World Bank country departments. Data for high-income economies are from the Luxembourg Income Study database. For more information and methodology, please see PovcalNet (http://iresearch.worldbank.org/PovcalNet/index.htm).; ; The World Bank’s internationally comparable poverty monitoring database now draws on income or detailed consumption data from more than one thousand six hundred household surveys across 164 countries in six regions and 25 other high income countries (industrialized economies). While income distribution data are published for all countries with data available, poverty data are published for low- and middle-income countries and countries eligible to receive loans from the World Bank (such as Chile) and recently graduated countries (such as Estonia) only. See PovcalNet (http://iresearch.worldbank.org/PovcalNet/WhatIsNew.aspx) for definitions of geographical regions and industrialized countries.

The ratio of the income of the top 20 percent of the income distribution to that of the bottom 20 percent has fallen been on a downward trend in the European Union since 2015. From its recent high of 5.22 in 2015, the ratio has now fallen to 4.74 in 2022.

Income share held by lowest 20% of Viet Nam went up by 3.03% from 6.60 % in 2020 to 6.80 % in 2022. Since the 2.90% downward trend in 2018, income share held by lowest 20% improved by 1.49% in 2022. Percentage share of income or consumption is the share that accrues to subgroups of population indicated by deciles or quintiles. Percentage shares by quintile may not sum to 100 because of rounding.

In the third quarter of 2024, the top ten percent of earners in the United States held over ** percent of total wealth. This is fairly consistent with the second quarter of 2024. Comparatively, the wealth of the bottom ** percent of earners has been slowly increasing since the start of the *****, though remains low. Wealth distribution in the United States by generation can be found here.

Income share held by lowest 20% of Mexico leapt by 5.66% from 5.30 % in 2020 to 5.60 % in 2022. Since the 4.35% downward trend in 2012, income share held by lowest 20% rocketed by 27.27% in 2022. Percentage share of income or consumption is the share that accrues to subgroups of population indicated by deciles or quintiles. Percentage shares by quintile may not sum to 100 because of rounding.

Income share held by lowest 20% of Peru slipped by 3.51% from 5.70 % in 2022 to 5.50 % in 2023. Since the 20.83% surge in 2021, income share held by lowest 20% dropped by 5.17% in 2023. Percentage share of income or consumption is the share that accrues to subgroups of population indicated by deciles or quintiles. Percentage shares by quintile may not sum to 100 because of rounding.

Income share held by lowest 20% of Canada leapt by 11.69% from 7.70 % in 2019 to 8.60 % in 2020. Since the 1.35% downward trend in 2017, income share held by lowest 20% rocketed by 17.81% in 2020. Percentage share of income or consumption is the share that accrues to subgroups of population indicated by deciles or quintiles. Percentage shares by quintile may not sum to 100 because of rounding.

Income share held by lowest 20% of Czech Republic went up by 1.03% from 9.70 % in 2021 to 9.80 % in 2022. Since the 2.97% downward trend in 2020, income share held by lowest 20% remained constant by 0.00% in 2022. Percentage share of income or consumption is the share that accrues to subgroups of population indicated by deciles or quintiles. Percentage shares by quintile may not sum to 100 because of rounding.

Income share held by lowest 20% of Azerbaijan went up by 0.93% from 10.70 % in 2004 to 10.80 % in 2005. Since the 6.42% drop in 2003, income share held by lowest 20% jumped by 5.88% in 2005. Percentage share of income or consumption is the share that accrues to subgroups of population indicated by deciles or quintiles. Percentage shares by quintile may not sum to 100 because of rounding.

Graph and download economic data for Personal Taxes: Federal Income Taxes by Quintiles of Income Before Taxes: Lowest 20 Percent (1st to 20th Percentile) (CXUFEDTAXESLB0102M) from 1984 to 2023 about percentile, tax, federal, personal, income, and USA.

As of 2023, Spain was the major economy in Europe with the highest share of national income taken home by the bottom 50 percent of earners. The country has seen a gradual increase in the share taken by the poorest 50 percent since the 1990s, with this share increasing from roughly 20 percent to over 21 percent in 2023. In stark contrast, Russia is the country which has seen the greatest decrease in the share of income taken by the bottom half. With the end of communist rule in 1991, the income of the poorest Russians nosedived from around 28 percent of national income, to less than 10 percent in 1996. Since then, the bottom half's share in Russia has increased, being approximately 16 percent in 2023.

Income share held by lowest 20% of Croatia slipped by 3.66% from 8.20 % in 2021 to 7.90 % in 2022. Since the 1.27% improve in 2019, income share held by lowest 20% declined by 1.25% in 2022. Percentage share of income or consumption is the share that accrues to subgroups of population indicated by deciles or quintiles. Percentage shares by quintile may not sum to 100 because of rounding.

Income share held by lowest 20% of Niger leapt by 14.47% from 7.60 % in 2018 to 8.70 % in 2021. Since the 12.36% drop in 2014, income share held by lowest 20% jumped by 11.54% in 2021. Percentage share of income or consumption is the share that accrues to subgroups of population indicated by deciles or quintiles. Percentage shares by quintile may not sum to 100 because of rounding.

The ratio of the income of the top 20 percent of the income distribution to that of the bottom 20 percent has fallen been on a downward trend in the European Union since 2015. From its recent high of 5.22 in 2015, the ratio has now fallen to 4.66 in 2024.

Graph and download economic data for Share of Net Worth Held by the Bottom 50% (1st to 50th Wealth Percentiles) (WFRBSB50215) from Q3 1989 to Q1 2025 about net worth, wealth, percentile, Net, and USA.