Income Ratio refers to a comparison between an individual's or household's income and that of others in their peer group. It is typically expressed as a percentage, with 100% indicating that one's income falls within the middle range of their peers. An income ratio above 100% means that someone earns more than average for their demographic group, while an income ratio below 100% indicates they earn less than average. This measure can provide insight into patterns of economic inequality and help identify groups at risk of being left behind in the economy.