Median family income refers to the figures published by the U.S. Census Bureau each year. The figures include the U.S. median household income, the median household income and Gini index of each state and Puerto Rico, the median household income of the most populous metropolitan areas, and the median household income of selected characteristics (ethnics and age).
The most recent median family income published by the Census Bureau was in September of 2019, which was the household income of 2018 in the United States. The 2018 median family income was $61,937, which was the second consecutive year that U.S. median household income was higher than 2007.
The median family income is an important figure in bankruptcy law. In the Chapter 7 bankruptcy means test, the debtor passes the means test if the debtor’s monthly income yields a figure lower than the median family income, otherwise the debtor would have to pass the step 2 of the means test in order to file for chapter 7 bankruptcy.
[Last updated in August of 2020 by the Wex Definitions Team]