The U.S. poverty rate fell to its lowest level on record in 2025 while American household income climbed to a new high, according to newly released Census Bureau data showing significant improvement in two closely watched measures of household economic well-being.
The official poverty rate declined to 10.2%, down half a percentage point from 2024 and the lowest recorded under the government’s official measure. About 34.5 million Americans were living below the official poverty line. The poverty rate among children also fell to a historic low of 13.4%.
At the same time, inflation-adjusted median household income rose 2.6% to $87,460 — the highest level since the Census Bureau began tracking the measure in 1967. Median income stood at $85,210 in 2024, meaning the typical U.S. household gained purchasing power even after accounting for inflation.
The improvement, however, was not evenly distributed. Income at the 90th percentile increased 1.7%, while income at the 10th percentile showed no statistically significant change. Black households recorded a 4.8% increase in median income, while increases for Asian and Hispanic households were not statistically significant.
Another measure of poverty presents a more complicated picture. The Supplemental Poverty Measure, which accounts for taxes, government assistance and expenses including housing and medical costs, stood at 13.1% in 2025 and was not statistically different from the previous year. That measure provides a broader view of the financial pressures facing households than the government’s official poverty calculation.
The Readovia Lens
The new numbers show measurable improvement in American household finances: median income has finally surpassed its previous highs while official poverty has reached a record low. But the gap between the official and supplemental poverty measures — along with weaker income growth at the bottom of the distribution — shows why the national economic picture can improve even as many households continue to feel financially stretched.
