Newsletter
According to the Federal Reserve Bank of St. Louis statistics for 2023, the real median personal annual income was $42,220. Meanwhile, the median household annual income was $80,610.
Knowing the median income is helpful for those who want to know how their salary compares to their peers’ salary. It’s also a good way to determine whether they’re getting paid fairly in their industry.
Keep in mind that figures and data can vary depending on the source. Organizations like the Bureau of Labor Statistics, Census Bureau, and other analysts often use different data collection and analysis methods. Variations in sampling techniques, definitions, and analytical frameworks can lead to differences in reported numbers.
So, how much does the average American make? It depends on factors such as education level, geographic location, gender, and age. Income varies across different states due to factors like occupation, location, and experience, and it's important to consider regional differences and the cost of living when evaluating salary expectations and job opportunities.
U.S. Income Statistics
Here are some recent statistics to gauge where your income stacks up.
-
Average Annual (Full-Time) Salary: According to Statista, in 2023, the average annual salary per full-time equivalent employee in the United States was $81,359. This figure represents the total compensation (including bonuses and other payments) before taxes.
-
Average Tax Payment: In 2023, the average U.S. taxpayer paid $19,113 in federal income taxes.
-
Average Salary After Taxes: In 2023, according to the Social Security Administration, the average U.S. salary after taxes was estimated to be around $66,622, reflecting a 4.43% increase compared to the average salary of $63,795 in 2022.
-
Average Salary by State: The states with the highest average salaries are Massachusetts ($80,330), New York ($78,620), and Washington ($78,130). The states with the lowest average salaries are Mississippi ($47,570), Arkansas ($51,250), and West Virginia ($52,200).
-
US Median Wage: The U.S. Bureau of Labor Statistics reported that in the third quarter of 2024, the median weekly earnings for full-time workers was $1,165, or a median salary of $4,660 monthly, or $60,580 annually. This figure highlights the consistency of full-time workers' earnings as a measure of income distribution.
-
US Median Family Income: Analysts estimate the U.S. median household income in September 2024 was approximately $81,867.
-
Median US Salary by Age: According to 2021 data from the U.S. Census Bureau, individuals aged 45 to 54 earned the highest median income of $97,089.
-
US Income by Race: In 2023, the U.S. Census Bureau reported that Asian households had the highest median income of $112,800, while Non-Hispanic White households earned $89,050.
-
US Gender Pay Gap: The persistent gender pay gap shows that in 2024, women earn approximately 82 cents for every dollar earned by men. The disparity is even wider for female Black and Hispanic Americans, who earn 67 cents and 57 cents, respectively.
U.S. average salaries by sector
Let's compare earnings across various sectors. Some of the top-paying jobs in America are in the healthcare, finance, and technology industries.
Top Average Salaries in the Healthcare Sector
- Surgeon: $250,000+
- Dentist: $150,000+
- Nurse Practitioner: $100,000+
- Pharmacist: $120,000+
- Physical Therapist: $80,000+
Top Average Salaries in the Finance Sector
- Investment Banker: $200,000+
- Financial Analyst: $100,000+
- Accountant: $70,000+
- Insurance Agent: $60,000+
- Financial Advisor: $90,000+
Top Average Salaries in the Technology Sector
- Software Engineer: $120,000+
- Data Scientist: $110,000+
- Web Developer: $90,000+
- Network Engineer: $80,000+
- Cybersecurity Analyst: $100,000+
Median U.S. Annual Income by Year
The median U.S. household income in 2022 was $74,580, according to the U.S. Census Bureau. This is about a 2.3% decrease from the median household income in 2021 ($76,330). For the most part, the average annual income has gone up in the past few decades. In 2023, the median household income increased by 8% to $80,610.
Here is data on the median income:
Demographics Stats
When determining the median or average income, gender and age play a major role. These factors can significantly affect the median and potential lifetime earnings. Additionally, the income data for these demographics show interesting patterns in the median U.S. salary. They also make it easier to make more accurate salary comparisons.
Annual Income by Gender
Generally, female full-time employees still earn less than their male counterparts. Although there has been some progress towards achieving equal pay and bridging the annual income gap, there is still a significant gap in earnings based on gender.
According to the Pew Research Center, the data shows that female workers earned 82% of what men earned in 2022. A decade before in 2002, the pay gap stood at 80%. Several factors may explain why female workers tend to make a lower annual net income than their male peers. These may include:
- The need to work fewer hours due to raising children or caring for a family member.
- Men working at jobs or in industries that traditionally pay higher.
- Certain demographics receive more discrimination when it comes to annual U.S. salary.
The Gender Pay Gap
Here's an overview of earnings based on gender since 2010. The data shows male and female annual income.
The median annual income for both males and females generally increased from 2014 to 2020. In 2020, the female-to-male earnings ratio was 0.830. This is not a significant change from the previous year. However, it has slightly improved over the years.
The Median American Income by Age
Age is another notable factor in terms of average income and median earnings. Historically, people make the highest amount in their 40s to 60s. This may be because they are more established and/or experienced in their career. On the other hand, younger workers tend to make less money.
Here's the median household income by age in the U.S. according to the U.S. Census Bureau:
Annual Earnings by Education Level
The educational attainment level often makes a difference in how much an individual earns each year throughout their career. Here are some other quick statistics on the annual earnings based on education level:
- People who've attended college typically earn more money than those with only a high school diploma.
- On average, people with bachelor's degrees make more than twice as much money as those without.
- Those with a bachelor's degree make around 34.3% more than the median income when compared to those without a college education.
Here's the most recent census data on the median income by education.
Keep in mind that the data does not necessarily account for the type of degree obtained nor how desirable it is in the job market. Higher degrees and certain majors tend to yield a higher salary than others.
Highest-Paying Jobs in 2024 That Don’t Require a College Education
Effect of Tariffs on Businesses and Consumers: A Look at the Pros and Cons
Highest Earning Starting Salaries
Positions in the STEM industries (science, technology, engineering, and math) tend to have the highest starting salaries for new graduates. These fields have been in high demand for years and continue to be so now.
Other positions with a high starting salary include finance, construction, architecture, and business. Here's a comparison table for the top 15 starting jobs by salary:
Median Income By State
Conclusion
Anyone who wants to compare their annual income should start with the median U.S. salary for their occupation and demographic. Although the numbers may vary, this is a great way to determine whether they're making a competitive salary. It's also helpful for those who want to know the average American income. Remember, census data can provide an estimate, but many factors influence the median U.S. salary.
Frequently Asked Questions
What is a good average salary in the US?
Determining a "good" average salary in the U.S. depends on various factors, including location, industry, experience, and individual financial goals. As of May 2022, the U.S. Bureau of Labor Statistics reported an average US salary of $61,900 across all occupations. For instance, the average salary in California is $61,290, which is much higher than Mississippi, where the annual income is $40,090 - much below the national average.
What percentage of Americans make over $100k?
According to 2022 US census data, approximately 37.1% of U.S. households earned $100,000 or more annually.
What percentage of Americans have a net worth of over $1M?
As of 2023, approximately 18% of U.S. households had a net worth of $1 million or more, including the value of their primary residence. This indicates that nearly one in five American households are millionaires when considering total assets.
Article Topics
News & Updates
Angela Mae is a personal finance writer specializing in loans, debt management, investing, retirement planning, and financial literacy. She comes from a journalistic background and pulls from hands-on experience and deep-dive research to breathe life into her stories. Her goal is to help others achieve financial stability and independence. When not writing, she can be found traveling, honing her yoga skills, hiking, or exploring new means of healthy, sustainable living.
