Federal Poverty Level (FPL) - Glossary (2024)

FAQs

How do I figure out my federal poverty level? ›

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.

A measure of income issued every year by the Department of Health and Human Services (HHS). Federal poverty levels are used to determine your eligibility for certain programs and benefits, including savings on Marketplace health insurance, and Medicaid and CHIP coverage.

/ˈpɒvəti laɪn/ The poverty line is the minimum amount of money a person needs to fulfill the basic necessities of life, like shelter and food.

The Poverty Threshold in 2024

According to the most recent report from the U.S. Census Bureau, the poverty threshold for a family of four is $29,960. For an individual, the poverty threshold is $14,891.

Federal Poverty Level Defined

When the federal government refers to “income,” it is referring to modified adjusted gross income, which is not a number on your tax return. For most people, it's the same or similar to adjusted gross income. A “household” is typically defined based on tax status.

Note: Income is family cash income. The poverty rate “including Social Security” is the official poverty rate.

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). Under their guidelines, a family of four is considered impoverished if they earn $30,000 or less per year.

In January, the 2024 federal poverty level (FPL) was announced as $15,060. This is an increase from $14,580 in 2023.

How is the poverty line calculated? ›

The Census Bureau determines poverty status by using an official poverty measure (OPM) that compares pre-tax cash income against a threshold that is set at three times the cost of a minimum food diet in 1963 and adjusted for family size.

The federal poverty guidelines, also known as the federal poverty level (FPL), measure a household's poverty status based on its annual income. The FPL doesn't look at just the income you take home—instead, your FPL is based on your modified adjusted gross income (MAGI).

To calculate total family income, the incomes of all related family members that live together are added up to determine poverty status. If an individual or group of individuals (such as housemates) are not living with family members, their own individual income is compared with their individual poverty threshold.

In general, a ratio less than 1 means that the income is less than the poverty level. When the ratio equals 1, the income and poverty level are the same, and when the ratio is greater than 1, the income is higher than the poverty level.

Women, old people and children are the poorest of the poor in the society. They are systematically denied equal access to the resources available in the family. Hence, they are considered the poorest of the poor.

The Census Bureau determines poverty status by using an official poverty measure (OPM) that compares pre-tax cash income against a threshold that is set at three times the cost of a minimum food diet in 1963 and adjusted for family size.

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.