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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.
These are just a few, but there are many more:
Department or agency
Programs
Department of Health and Human Services
AIDS Drug Assistance Program.
Assets for Independence Demonstration Program.
Children’s Health Insurance Program.
Community Health Centers.
Community Services Block Grant.
Family Planning Services.
Health Careers Opportunity Program.
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.
Under their guidelines, a family of four is considered impoverished if they earn $30,000 or less per year. That number is slightly higher in Alaska and Hawaii, which tend to have higher living expenses.
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).
They might need to rely on assistance from family, friends, and/or the government to afford basic necessities. A $20,000 salary puts a single person above the poverty threshold for 2022. An individual supporting themselves plus two or more people on $20K a year, however, will live below the poverty threshold.
No, $30,000 is not a great salary for a single person, but it can be livable depending on the person's location and expenses. The average personal income in the United States is $63,214 per year, which is more than double the $30k mark. This initially makes you think that someone earning $30,000 is on a tight budget.
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 year for a family of four.
Today, $75,000 is a statistical gateway to the modern middle class: Though it's more than what many Americans earn, it's still not enough to relieve the many anxieties rooted in money.
50k annually is about 50% higher than minimum wage in California. It's a poverty wage, close to half the wage of full time working adults. Some people may find it comfortable but that is really a personal choice.
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.
You also need an annual household salary of at least $50,000 to be considered middle class in 17 other states, including California, New York, Oregon, Washington, Utah and Hawaii. In California, the difference is $122,000, from a salary of $61,028 on the lower end to $183,102 on the upper end.
The FPL is typically issued annually in January by HHS and is determined by household income and size. Within its annual report, the HHS shows the total cost needed by the average person per year to cover basic necessities such as food, utilities, and accommodation.
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.
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 year for a family of four.
Some 2021 poverty thresholds were: $13,788 for a single individual under age 65. $16,400 a household of two people with a householder 65 years or older with no children. $27,479 for a family of four with two children under age 18.
The working poor are people who spent at least 27 weeks in the labor force (that is, working or looking for work) but whose incomes still fell below the official poverty level.
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