The association between low household income and adolescent mental health causes continuing concern. We examined the relation between household income and adolescent internalizing and externalizing problems, and explored individual, parental, and neighborhood characteristics. The sample included 872 Dutch adolescents (Mage = 14.93 years) oversampled on risk of psychopathology. Low income was defined as parent-reported net monthly household income below the 20th percentile (<€2000). Internalizing and externalizing problems were examined using the Youth Self-Report and Child Behavior Checklist. Covariates included sex, age, ethnic background, IQ, perceived social support, adverse life events, physical health, parental psychopathology, parental IQ, parent-child interaction, neighborhood unemployment rate, and neighborhood violence. Low household income was associated with more internalizing and externalizing problems. These associations were explained by more physical health concerns, increased parental psychopathology, more parent-child interaction problems, more adverse life events, lower perceived social support, and lower adolescent IQ. For all, except for mother-child interaction, a mediating role was suggested. This indicates a complex interplay between household income, individual, social, and parental factors affecting adolescent mental health. This study accentuates the necessity for a comprehensive, multi-faceted approach to address the negative effects of poverty on adolescent mental health, targeting these influences for preventive measures.