A broad measure of American incomes reached a record high last year, fueled by upper-income households, while women's pay gained ground compared with men, according to the Census Bureau.
The annual Census report on households' financial well-being sheds light on how Americans fared during President Trump's first year back in office, but also before the war in Iran led to soaring prices at gas pumps, higher inflation and more pressure on Americans' wallets.
Median household income topped the peak hit just before the Covid pandemic, reaching $87,460 in 2025, up 2.6% from 2024 after adjustment for inflation, the new data show. The gains were largely driven by wealthier households, reflecting a growing divide where high earners are doing most of the spending.
"This is a signal that the economy may be finally finding its groove coming out of the pandemic," said Wells Fargo economist Shannon Grein. But, she noted, the gains haven't been evenly felt.
Other key findings in the report:
After two straight years where the pay gap between women and men widened, women had a good year. Women who worked full time year-round earned 84 cents for every dollar that comparable men worked, up from 81 cents the previous year.
Black Americans saw the largest income gains among any racial group at 4.8%, while non-Hispanic white workers' rose 2.9%. Income gains for Hispanics and Asians weren't significantly different.
Tuesday's report showed a mixed picture on poverty. The bureau estimated that 13.1% of the U.S. population-about 44.4 million people-lived in poverty last year, not significantly different from 2024, based on a broad measure that many economists rely on. However, the federal government's narrower official poverty measure showed 10.2% of the population was in poverty, down 0.5% from the year before.
About 26.7 million people-7.9%-lacked health-insurance coverage for the entire year, not significantly different from the previous year. Importantly, this report marks a final reading before the withdrawal of Affordable Care Act subsidies at the start of 2026 led millions to drop coverage.