US household income top pre-pandemic levels for the 1st time as Americans struggle with inflation

WASHINGTON (AP) — U.S. household income finally topped pre- pandemic levels last year, a stark sign of how the past five years of rising prices have limited Americans’ earnings and purchasing power.

Median U.S. household income rose a healthy 2.6% in 2025, after adjusting for inflation, to $87,460, the Census Bureau said Tuesday. That is a record high, topping 2019 household income of $85,320.

The figures show that even after taking into account higher prices, the typical household now earns more than it did before the pandemic. But it's a small gain over a six-year period, which helps explain the generally sour mood Americans have had about the economy since COVID-19 struck in early 2020. Concerns about affordability have taken a leading role in the fast-approaching midterm elections.

Household income has risen 2.5% since 2019, according to Census data. Yet over the previous six-year period, from 2013 to 2019, a period of very low inflation and declining unemployment, it jumped 19%.

The Census report also showed that women's paychecks rose 3.2% last year, while men's declined slightly. The solid gain for women narrowed the gender wage gap, though it remains large, with women earning nearly 84 cents for every dollar earned by men, up from less than 81 cents in 2024.