What is State Median Income? A Comprehensive Legal Overview

Definition & Meaning

The term "state median income" refers to the median income level for households within a specific state. This figure is established by the Secretary of the Department of Health and Human Services according to guidelines set out in federal law. The state median income is adjusted based on the number of individuals living in a household, which helps to reflect the economic conditions of different family sizes.

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Real-world examples

Here are a couple of examples of abatement:

Here are a couple of examples of how state median income is applied:

  • Example 1: A family of four in California may qualify for housing assistance if their income is below the state median income for a household of that size.
  • Example 2: An individual applying for energy assistance in Texas must demonstrate that their income is below the state median income to be eligible for support (hypothetical example).

State-by-state differences

State Median Income (2023)
California $84,000
Texas $60,000
New York $75,000

This is not a complete list. State laws vary and users should consult local rules for specific guidance.

Comparison with related terms

Term Definition Difference
Median Income The middle income value in a list of incomes. State median income is specific to a state's population and adjusted for household size.
Average Income The total income divided by the number of income earners. Average income can be skewed by very high or very low incomes, while median income provides a better representation of typical earnings.

What to do if this term applies to you

If you believe you may qualify for assistance based on state median income, consider the following steps:

  • Check your household size and income against the state median income guidelines.
  • Gather necessary documentation, such as income statements and household information.
  • Explore resources and legal forms available on US Legal Forms to assist with your application process.
  • If your situation is complex, consider seeking advice from a legal professional.

Quick facts

  • Typical Calculation Method: Median income is determined by the Secretary of Health and Human Services.
  • Adjustment: Based on household size.
  • Use: Determines eligibility for various assistance programs.

Key takeaways