1. What is Income Percentile By State And City?

The income percentile by state and city shows how your income compares to others in your geographic area. It provides context about your economic standing relative to your local community.

2. How Does the Calculator Work?

The calculator uses census data and statistical models:

Where:

• \( Income \) — Annual household income (USD)
• \( State \) — U.S. state or territory
• \( City \) — City or town name

Explanation: The calculation references detailed income distribution tables specific to each location, accounting for regional cost of living and economic factors.

3. Importance of Income Percentile

Details: Understanding your income percentile helps with financial planning, career decisions, and assessing affordability in your area. It provides more meaningful context than national averages.

4. Using the Calculator

Tips: Enter your pre-tax household income, select your state and city. Use your most recent tax return for accurate calculations.

5. Frequently Asked Questions (FAQ)

Q1: What data sources are used?
A: Primarily U.S. Census Bureau data, supplemented by IRS statistics and local economic reports.

Q2: Does this include all income sources?
A: The calculator uses total household income including wages, investments, and other taxable income.

Q3: How often is the data updated?
A: The underlying data is typically updated annually, with a 1-2 year lag for processing.

Q4: Why does location matter?
A: Cost of living and average incomes vary dramatically between locations - $100,000 goes much further in rural areas than major cities.

Q5: Can I compare across states?
A: While you can see percentiles in different locations, remember that purchasing power differs significantly.