Lower-income Americans spend more on essentials than they make in a year

Share of after-tax income spent in 2020, by income bracket

Income

brackets

Housing

Transportation

Food

Health

All other spending

Lowest

20%

157%

of income

Second

20%

87%

Third

20%

67%

Fourth

20%

57%

Highest

20%

42%

0

50

100%

of income

150

200%

Income

brackets

Housing

Transportation

Food

Health

All other spending

Lowest

20%

157%

of income

Second

20%

87%

Loans and savings

make it possible for

people to spend

more than their

annual income

Third

20%

67%

Fourth

20%

57%

Highest

20%

42%

0

50

100%

of income

150

200%

All other

spending

Income

brackets

Housing

Transportation

Food

Health

Lowest

20%

157%

of income

Second

20%

87%

Loans and savings make it

possible for people to spend

more than their annual income

Third

20%

67%

Fourth

20%

57%

Highest

20%

42%

0

25

50

75

100%

of income

125

150

175

200%

All other

spending

Income

brackets

Housing

Transportation

Food

Health

Lowest

20%

157%

of income

Second

20%

87%

Loans and savings make it

possible for people to spend

more than their annual income

Third

20%

67%

Fourth

20%

57%

Highest

20%

42%

0

25

50

75

100%

of income

125

150

175

200%

All other

spending

Income

brackets

Housing

Transportation

Food

Health

Lowest

20%

157%

of income

Second

20%

87%

Loans and savings make it

possible for people to spend

more than their annual income

Third

20%

67%

Fourth

20%

57%

Highest

20%

42%

0

25

50

75

100%

of income

125

150

175

200%