October 26, 2018

KUOW: A $40,000 Salary Is no Longer Middle Class in Washington State. Here’s Why.

ITEP Work in Action

Look what’s happened to an income of $40,000. In 2015, the Institute on Taxation and Economic Policy (ITEP), based in Washington, D.C., looked at incomes in Washington state and found that a salary of $40,000 was still middle class. It was smack-dab in the middle of middle-earning incomes in the state.

In 2018, ITEP looked again. This time, $40,000 had slipped a notch, to the second-lowest 20 percent of earners. The reason: More people in the state were making higher-end incomes.

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