Determining whether a household is considered upper-middle class in the United States involves more than just income. Factors such as taxes, investing, and financial flexibility also play significant roles. According to an analysis by the American Enterprise Institute, around 31 percent of U.S. families were considered upper-middle class in 2024. However, there is no official government definition, and estimates for the income range vary. Jordan Gilberti, a certified financial planner, noted that the commonly cited range for upper-middle-class households in 2026 is $117,000 to $150,000. This range can vary significantly by location, with some states requiring at least $150,000 to be classified as upper-middle class, while in areas like San Francisco, even six figures may not provide financial comfort. Financial flexibility is a key differentiator between the middle and upper-middle classes, according to Jon Lapp, a certified financial planner. He suggested that the move from middle to upper-middle class can be measured by the amount of flexibility and control individuals have over their time and decisions. Upper-middle-class households typically have more breathing room in their budgets, allowing them to better manage unexpected expenses. Eric Croak, president of Croak Capital, noted that upper-middle-class individuals have more leeway to compound their wealth and are more likely to afford financial professionals such as personal CPAs and estate attorneys. Despite these advantages, upper-middle-class Americans may still face financial strain. Reduced eligibility for government assistance programs and tax breaks can create a squeeze, according to Xintian Wang, a senior tax manager. Upper-middle-class earners often feel trapped due to the tax crunch, which may not feel proportionate to their actual earnings. Some may take on jobs they dislike or buy smaller homes to reduce tax liability. Additionally, lifestyle choices such as larger mortgages, private school tuition, and multiple car payments can reduce financial security. Moving from the middle to upper-middle class is often more straightforward than moving to the upper class. Wang noted that this shift can be achieved through a raise, a second earner, or a better job. However, climbing to the upper class typically requires significant assets that passively grow or receiving a windfall. The tax code also complicates the move from upper-middle to upper class, as the IRS taxes job income and investment gains at different rates.