The financial landscape for LGBTQ+ individuals in the U.S. is marked by challenges stemming from bias and inadequate protections. Below are 12 statistics that highlight the economic inequality faced by this community.

Women, in general, encounter barriers to achieving economic equality, including stable employment and healthcare access. For the 5.1 million LGBTQ+ women, these challenges are compounded by biases and a lack of legal safeguards linked to their sexual orientation or identity.

Until recently, there were no explicit federal laws preventing discrimination based on sexual orientation. A significant change occurred on June 15, 2020, when the Supreme Court ruled that Title VII of the Civil Rights Act extends protections against sex discrimination to LGBTQ+ employees.

This ruling is a monumental achievement, but much work remains. Years of discriminatory laws have left a legacy of insecurity in employment, education, housing, healthcare, and credit—key components of financial stability.

According to a comprehensive report on the economic impact on LGBTQ+ women in the U.S., co-authored by prominent research organizations, the following insights are revealed:

  • Approximately 4.1% of adult women identify as LGBTQ+ compared to 3.9% of adult men.
  • Among the LGBTQ+ demographic, there are around 350,000 transgender women.
  • In terms of earnings, women in same-sex couples earn $0.79 for every dollar earned by men in opposite-sex marriages, while men in same-sex marriages earn $0.98.
  • One in five LGBTQ+ women living alone falls below the poverty line.
  • African American LGBTQ+ women in same-sex relationships face three times the poverty rate of their white counterparts, while Latina LGBTQ+ women face double the poverty risk.
  • Older women (65+) in same-sex relationships experience nearly double the poverty rate compared to older married heterosexual couples.
  • 15% of female same-sex couples raising children live in poverty, compared to 9% of heterosexual couples with children.
  • LGBTQ+ women of color experience increased workplace discrimination due to their intersecting identities, with 75%-82% of Asian and Pacific Islander LGBTQ+ individuals reporting discrimination, and 42% of Black LGBTQ+ individuals facing similar challenges.
  • A 2014 Gallup survey found that 39% of non-LGBTQ+ women reported thriving, in contrast to only 29% of LGBTQ+ women.

*Note: The statistics cited here reflect the terminology and acronyms used by the original researchers.

12 Essential Statistics Everyone Should Know

Let’s examine 12 significant statistics that shed light on the economic struggles faced by LGBTQ+ individuals.

50%: The percentage of LGBTQ+ workers who gained federal protection from discrimination

Approximately 3.4 million LGBTQ+ workers, including over 500,000 transgender individuals aged 16 and older, reside in states lacking statutory protections against discrimination based on sexual orientation and gender identity, per a report from a leading research institute.

Where protections exist, LGBTQ+ workers see benefits. For example, the poverty rate among female same-sex couples in states with protections is 5.6%, compared to 9.2% in states without such safeguards. This trend holds true for married opposite-sex couples as well, with minor differences in poverty rates across states.

43%: Percentage of LGBTQ+ employees who are not fully “out” at work

A study by Glassdoor revealed that more than half of LGBTQ+ employees and 30% of non-LGBTQ+ employees have faced or witnessed anti-LGBTQ+ comments in the workplace.

It's no surprise that nearly half (47%) of LGBTQ+ employees fear that being open about their identity could negatively impact their careers. According to OutLeadership.com, 43% of LGBTQ+ workers are not fully open about their identities at work, with less than 0.3% of directors at Fortune 500 companies identifying as LGBTQ+.

Up to 10%: The productivity lost by LGBTQ+ workers covering their identities

When LGBTQ+ employees feel the need to hide their identities, it can cost companies. About 9% of LGBTQ+ individuals have left a job due to an unwelcoming environment. Those who stay often spend significant time managing their identities, resulting in an “inclusion dividend” loss of up to 10% in productivity.

12%: The income gap between average lesbian and heterosexual women

According to UBS, the average salary for lesbian respondents is $45,606, while heterosexual women earn about $51,461. The disparity is even more pronounced between gay men ($56,936) and heterosexual men ($83,469).

A 2008 study cited by the report showed that transgender women transitioning from male to female typically faced a nearly 33% drop in wages, while transgender men showed slight wage increases after transitioning from female to male.

$26,000: The annual income difference between Asian Pacific Islander male and female same-sex couples

Income inequality persists in the LGBTQ+ community, where lesbian women earn less than their male counterparts, and bisexual women earn less than bisexual men, as demonstrated in Prudential’s 2016/2017 study titled The LGBTQ+ Financial Experience.

Data shows that female same-sex couples earn nearly $100,000 on average, while male same-sex couples earn about $130,000. This trend is consistent across races, with significant gaps, including a $21,000 difference between African American same-sex couples and $14,000 between Latina couples and their male counterparts.

$0.16: The wage gap between married women in same-sex and opposite-sex marriages

While the general wage gap indicates women earn $0.82 for every dollar men make, women in same-sex marriages earn better than their heterosexual counterparts. A study from the Williams Institute found that married women in same-sex couples earn $0.79 for every dollar earned by their male peers in opposite-sex marriages.

This trend may be attributed to women in same-sex relationships being less likely to take parental leave, allowing them to remain in the workforce and benefit from work-related advancements.

<$12,000: Annual income for 22% of LGBTQ+ individuals

The federal poverty threshold for a single-person household is set at approximately $12,000. Among the LGBTQ+ community, 22% earn below this amount, compared to 16% of non-LGBTQ+ individuals. Those identifying as bisexual or transgender report even higher poverty rates, around 30%.

49%: Homeownership rate among the LGBTQ+ community

While the Fair Housing Act prohibits discrimination based on race, color, religion, sex, or national origin, it does not cover sexual orientation or gender identity. This gap contributes to a lower homeownership rate among LGBTQ+ individuals—49% compared to 64% of the general population, as noted in a 2018 Freddie Mac study.

A 2019 report indicated that discrimination during the housing search is prevalent, with 15% of same-sex couples reporting negative treatment when attempting to rent or purchase a home. Meanwhile, 30% of transgender home seekers faced similar discrimination last year.

0.2%: Extra interest and fees paid by same-sex borrowers

Research highlighted in the National Academy of Sciences journal showed that same-sex couples are 73% more likely to be denied mortgages compared to heterosexual couples with similar financial profiles.

When approved, same-sex couples often receive less favorable terms, resulting in an additional cost of 0.02% to 0.2% in interest and fees, translating to an estimated annual loss of $8.6 million to $86 million across the nation.

57%: Older LGBTQ+ women worried about financial security

The fear of financial insecurity, commonly referred to as the “bag lady” syndrome, affects many women. In the LGBTQ+ community, older individuals face heightened vulnerability due to a history of discrimination and limited support networks.

According to the “Out & Visible” report from SAGE, about one in three LGBTQ+ older adults live alone, compared to 21% of their non-LGBTQ+ peers. Among older LGBTQ+ women, 57% express concerns about financial stability, compared to 49% of older LGBTQ+ men.

$66,000: Median retirement savings for same-sex couples

Saving for retirement is a challenge for all, but the LGBTQ+ community faces steeper hurdles. A UBS report on retirement savings found that same-sex couples have a median retirement savings of $66,000, compared to $88,000 for heterosexual couples.

This disparity may stem from lower participation rates in employer-sponsored retirement plans, IRAs, and other investment vehicles.

1% of GDP: The economic cost of discrimination

Numerous studies advocate for inclusivity in various sectors. Companies embracing diversity, including LGBTQ+ individuals, often outperform their competitors by an average of 10%.

Discrimination against LGBTQ+ entrepreneurs and workers not only impacts their lives but also the economy at large, with estimates suggesting that bias costs nations about 1% or more of their GDP, according to economist M.V. Lee Badgett.

As we reflect on these statistics, we encourage you to explore our special resources for LGBTQIA individuals and allies.