1. What is Income Percentile?

Income percentile indicates what percentage of the US population earns less than you. For example, if you're in the 80th percentile, you earn more than 80% of Americans.

2. How Does the Calculator Work?

The calculator uses current income distribution data:

Where:

• \( Income \) — Your annual pre-tax income in USD
• \( Lookup\_current\_table \) — Matches your income against the most recent US income distribution data

Explanation: The calculator compares your income to the most recent income distribution statistics from reliable sources like the US Census Bureau.

3. Importance of Income Percentile

Details: Understanding your income percentile helps with financial planning, comparing your earnings to national standards, and assessing economic mobility.

4. Using the Calculator

Tips: Enter your annual pre-tax income in US dollars. The calculator will show where you stand compared to all Americans.

5. Frequently Asked Questions (FAQ)

Q1: What counts as income for this calculation?
A: All pre-tax income including wages, salaries, tips, investment income, and business income.

Q2: How often is the data updated?
A: We use the most recent available data from official sources, typically updated annually.

Q3: Does this account for household size?
A: This calculator shows individual income percentiles. Household income percentiles would be different.

Q4: What's considered a "good" income percentile?
A: This depends on location and lifestyle, but generally above the 50th percentile is considered average, above 80th is high.

Q5: How does this compare globally?
A: This shows US-only comparison. Global income percentiles would be significantly different.