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The definition of "low income" can vary by household size, where you live and even the age of family or household members. It may not always be easy to put a specific number to the definition of low income, but that shouldn't keep you from getting the financial assistance you need.
Below, you'll find a long list of assistance programs specifically for low-income households. But first, we'll explain how low income is defined.
Defining low income
A commonly used definition of low income in the U.S. is the government-established federal poverty level.
The FPL is calculated each year by the Department of Health and Human Services, and it’s used to determine eligibility for a variety of assistance programs from nonprofit organizations, private companies and organizations, and specific federal programs. Examples include:
These guidelines are adjusted each year for inflation.
In 2023, the federal poverty level definition of low income for a single-person household is $14,580 annually. Each additional person in the household adds $5,140 to the total. For example, the poverty guideline is $30,000 per yearfor a family of four.
This standard applies in the 48 contiguous states and the District of Columbia. There are separate guidelines for Alaska and Hawaii that reflect the higher cost of living in those states.
However, as you would expect with the myriad rules of many government policies and programs, defining “low income” can get more complicated.
The measure of low income can vary
Some federal programs will use the FPL guideline number with a multiplier, such as 125%, 150% or 185%, to set eligibility. Nonfederal programs may use an entirely different multiplier.
The threshold for low-income benefits can also depend on the federal, state or local government agency or advocacy organization.
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Here are some of the federal programs that rely on the FPL definition of low income — or percentage multiples of it — to define qualification.
Head Start: This program provides early childhood education, health and nutrition services to low-income children and their families. To find a program in your area, use the Head Start Center Locator.
Low Income Home Energy Assistance Program: This program helps eligible low-income households with their heating and cooling bills.
Supplemental Nutrition Assistance Program: This program assists eligible low-income individuals and families with the purchase of food.
Health Professions Student Loans — Loans for Disadvantaged Students.
Job Opportunities for Low-Income Individuals.
Medicare – Prescription Drug Coverage (subsidized portion only).
Migrant Health Centers.
Scholarships for Health Professions Students from Disadvantaged Backgrounds.
Department of Agriculture
Child and Adult Care Food Program (for free and reduced-price meals only).
Expanded Food and Nutrition Education Program.
National School Lunch Program (for free and reduced-price meals only).
School Breakfast Program (for free and reduced-price meals only).
Special Supplemental Nutrition Program for Women, Infants, and Children — or WIC.
Supplemental Nutrition Assistance Program, or SNAP (formerly Food Stamp Program).
Department of Energy
Weatherization Assistance for Low-Income Persons.
Department of Labor
Job Corps.
National Farmworker Jobs Program.
Senior Community Service Employment Program.
Workforce Investment Act Youth Activities.
Department of the Treasury
Low Income Taxpayer Clinics.
Corporation for National and Community Service
Foster Grandparent Program.
Senior Companion Program.
Legal Services Corporation
Legal services for low-income individuals and families.
Other low-income guidelines and programs to note
The Department of Housing and Urban Development determines the eligibility of applicants for assisted housing programs such as Section 8 by calculating a percentage of the median income for a particular area.
The tax credit for low- to moderate-income working individuals and families, known as the Earned Income Tax Credit, does not use the FPL guidelines. Instead, the IRS has an eligibility tool for the EITC.
The Department of Education's Federal TRIO Programs — which provide services for disadvantaged and low-income students, as well as first-generation college students and individuals with disabilities — have their own definition of household income to determine eligibility.
How to find local and state low-income assistance programs
There is even more help available to low-income households through some programs that are administered on the state and local level. To find assistance near you, search for your state's department of health and human services.
Another far-reaching resource is 211.org, where a phone call or visit to the website can connect you to resources on a broad range of matters.
If you’re struggling to cover essentials, see our guide to finding help with bills. And with recent drops in SNAP payments, along with high grocery prices, it's important to know how to stretch your food benefits.
A widely used federal guideline defines low income as $14,580 annually for one person and $30,000 for a family of four. Hal M. Bundrick is a former NerdWallet personal finance writer. He is a certified financial planner and former financial consultant and senior investment specialist for Wall Street firms.
According to the most recent report from the U.S. Census Bureau, the poverty threshold for a family of four is $29,960.For an individual, the poverty threshold is $14,891.
The U.S. Department of Health and Human Services uses the Census Bureau threshold to determine who is eligible for certain government assistance programs, like SNAP (food stamps). Under their guidelines, a family of four is considered impoverished if they earn $30,000 or less per year.
Determination of low and moderate income is affected by area cost-of-living indices. Generally, low income is considered to be 50% or less of area median income, moderate income is 80% of area median income.
The term "low-income individual" means an individual whose family's taxable income for the preceding year did not exceed 150 percent of the poverty level amount.
Think You Couldn't Live On $30,000 A Year? Yes, You can! You typically can get by on $30,000 in annual take-home pay. But you would probably live more comfortably on that money in Kansas than in New York City—given the much lower cost of living.
Rising inflation has made it more challenging to get by on $40,000 in 2024, but this salary is still far above the United States Census Bureau's poverty threshold for families of up to six people. The $40,000 figure represents earning more than the federal minimum wage ($7.25/hour).
Though earning $50,000 a year puts you well above the poverty line, your budget may still be stretched tight on that income. That's why it pays to lower your non-housing expenses, too.
For example, in the year ending March 2022, a household made up of a couple with no children would be in low income with an annual household income of up to £17,700 before housing costs and £15,600 after housing costs.
It's quite possible to live well on $30,000 per year if you're debt-free, but what if you have debt? I would recommend trying to pay it off as quickly as possible with the debt snowball approach. Cut your expenses as much as you can and put the amount you save toward debt each month.
The gap between high and low incomes is wider in California than in most other states. In 2022 (the most recent data available), families at the top of the income distribution—the 90th percentile—earned 10 times more than families at the 10th percentile ($305,000 vs. $29,000, respectively).
Where you rank by income. According to the Census Bureau's Income in the United States: 2022 report, the median household income is $74,580 (a 2.3% decline from 2021), while household income levels for each class level are as follows: Lower class: less than or equal to $30,000. Lower-middle class: $30,001 – $58,020.
According to the most recent report issued in January 2023, the poverty threshold for a family of four is $29,960.For an individual, the poverty threshold is $14,891. The US Department of Health and Human Services (HHS) issues its poverty guidelines based on the Census Bureau's poverty thresholds.
The federal government defines poverty based on family size and income. If a family's total income is less than the poverty threshold set by the federal government, then that family is considered impoverished. The official poverty measure is adjusted annually to account for inflation.
According to the Census Bureau's Income in the United States: 2022 report, the median household income is $74,580 (a 2.3% decline from 2021), while household income levels for each class level are as follows: Lower class: less than or equal to $30,000. Lower-middle class: $30,001 – $58,020.
Pew Research considers middle class to be $56,000 to $156,000 for families of three. Thus, a family of three on $20,000 is not middle-class; it's actually below the poverty level. While an individual on $20,000 a year is not below the poverty line, they are still not considered middle-class.
It's quite possible to live well on $30,000 per year if you're debt-free, but what if you have debt? I would recommend trying to pay it off as quickly as possible with the debt snowball approach. Cut your expenses as much as you can and put the amount you save toward debt each month.
Introduction: My name is Greg O'Connell, I am a delightful, colorful, talented, kind, lively, modern, tender person who loves writing and wants to share my knowledge and understanding with you.
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