Median income is the middle point of income distribution in a specific group, such as a city, state, or country. It divides the population into two equal halves: half earn more than the median, and half earn less. This measure is often used to assess the economic health of a community and to compare income levels across different regions. Unlike average income, which can be skewed by extremely high or low incomes, median income provides a clearer picture of what a typical person earns. It is commonly used in economic studies, government reports, and discussions about income inequality and standard of living.