U.S. poverty is determined by the federal poverty threshold. The U.S. Census Bureau calculates it each year to report how many Americans live in poverty. Thresholds vary based on household size and family makeup
The poverty threshold for a one-person household under age 65 was $14,097 for 2021.
The official poverty rate in 2020 was 11.4%, according to the U.S. Census. This means that 11.4% of Americans were living below the poverty threshold. This percentage is up from 10.5% in 2019. The poverty rate has dropped from 15.1% since 2010.
About 37.2 million Americans lived in poverty in 2020, approximately 3.3 million more than in 2019.
Consider the following statistics about poverty in the U.S.:
The Census provides poverty statistics by state as a two-year average. The interactive map below shows the percentage of people living in poverty in each state as of 2018 and 2019.
Four of the 10 states with the most poverty are in the Southeast. Here are 2019-2020 poverty rates for the nine most impoverished states and Washington D.C.:
Several of the states with low levels of poverty are in the Northeast or are near a major East Coast city. Here is a list of the 10 states with the lowest poverty rates in 2019 and 2020.
The minimum wage is the lowest legal wage that companies can pay workers. The U.S. national minimum wage is $7.25 per hour as of January 2022, and it hasn't changed since 2009. One person who works 40 hours per week, 52 weeks per year, would earn a gross income of $15,080 per year. That is less than $1,000 above the 2021 poverty threshold of $14,097 for people under age 65.
In 2020, 1.112 million, or 1.5%, of hourly paid workers earned the federal minimum wage or less.
Six of the 10 states with the highest poverty rates use the federal minimum wage: Alabama, Kentucky, Louisiana, Mississippi, North Carolina, and South Carolina. One, West Virginia, has a minimum wage of $9 or less.
By January 2022, there were 30 states plus the District of Columbia with rates above the federal level. In Massachusetts, for example, the minimum wage was increased to $14.25 per hour on January 1, 2022.
In 18 states plus D.C., the minimum wage is indexed for inflation. That means it is automatically adjusted each year for increases in prices.
A total of 26 states are increasing their minimum wages effective 2022, and 22 of them implemented their changes on January 1.
The average rate of poverty in the U.S. was 11.4% in 2020. States could use that as a benchmark to consider how their poverty rates compare. The global poverty rate is closer to 10%, but it reflects a lower income threshold ($1.90 per day, or less than $700 per year).
Age data within poverty statistics is limited to three categories: under 18, 18 through 64, and over 64. Of these three categories, those under 18 have the highest poverty rate (16.1%).