What Income Counts as Poverty in 2025? Numbers Might Shock You

The U.S. poverty line hasn’t fundamentally changed since 1963—still based on the cost of feeding a family. But the 2025 thresholds tell an interesting story:

Solo: $15,650/year Family of 4: $32,150/year

Sounds high? Here’s the kicker—median household income is $75,580, nearly 2.3x the poverty threshold. Meanwhile, 36.8 million Americans (11.1% of the population) still live below this line.

The spending breakdown reveals the real squeeze:

• Poor households blow 41.2% of income on housing (vs. 33.8% for average)
• Food costs eat 16.7% for those earning under $15K (average: 12.4%)
• Healthcare drains 10.9% for the $15-30K earners (average: 8.1%)

But here’s what gets cut: entertainment drops to 4.6% and personal savings crash to 1.2%—basically zero buffer for emergencies.

The geography also matters. Alaska and Hawaii thresholds run 20-25% higher due to cost of living. Catch: eligibility for SNAP and Medicaid uses HHS guidelines, which are even stricter ($30K for a family of 4).

Take-home? Inflation hits the poorest hardest. They’re locked in basic survival mode while wealthier households maintain flexibility.