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According to the Federal Reserve Bank of St. Louis, the median personal annual income for adults is $45,927. Meanwhile, the median salary per household is $71,737 (in 2022)
To get the median, the U.S. Census Bureau gathers data over the past 12 months from anyone age 15 and older. It then lines up all income values in numerical order to find the middle value, known as the median. Half of all households make either more or less than this value.
Knowing the median income is helpful for those who want a salary comparison with their peers. It’s also a good way of telling if they’re getting paid a fair amount in their industry.
So, how much does the average American make? It depends on factors such as gender, age range, education level, and geographic location. With that in mind, here are some recent statistics to understand where your annual net income stacks up.
Key Statistics - Summary of Average U.S. Income in 2023
The median U.S. household income was $71,737 in 2022. This is about a 1% ($67,521) decrease from the median household income in 2021. For the most part, the average annual income has gone up in the past few decades.
Here are some key statistics about average U.S. income for 2023: and how much the average American makes:
1. US Average Salary: The average salary in the United States is $56,940 annually.
2. Top-Paying Jobs in America: The top-paying jobs in America are in the healthcare, finance, and technology industries.
U.S. average salaries by sector
Average American Income In Healthcare
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- Surgeon: $250,000+
- Dentist: $150,000+
- Nurse Practitioner: $100,000+
- Pharmacist: $120,000+
- Physical Therapist: $80,000+
Average US Finance Salary
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- Investment Banker: $200,000+
- Financial Analyst: $100,000+
- Accountant: $70,000+
- Insurance Agent: $60,000+
- Financial Advisor: $90,000+
US Average Technology Salary
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- Software Engineer: $120,000+
- Data Scientist: $110,000+
- Web Developer: $90,000+
- Network Engineer: $80,000+
- Cybersecurity Analyst: $100,000+
3. Monthly Average American Salary: The average monthly salary in the United States is $4,745.
4. US Salary by State: The average salary in the United States varies by state. The states with the highest average salaries are California ($75,276), New York ($71,628), and Massachusetts ($69,939). The states with the lowest average salaries are Mississippi ($41,776), West Virginia ($43,480), and Arkansas ($44,352).
5. US Median Family Income: The median family income in the United States is $71,000 per year.
6. Average US Salary by Age: Individuals aged 56-64 earned the highest median income of $83,812.
7. US Income by Race: In 2021, Asian Americans had the highest median income of $100,572, while white Americans earned $74,932.
Median U.S. Annual Income by Year
The median U.S. household income was $71,737 in 2022. This is about a 1% ($67,521) decrease from the median household income in 2021. For the most part, the average annual income has gone up in the past few decades.
Here is data on the median income:
According to the U.S. Bureau of Labor Statistics, the average annual income for full-time workers (households) in 2021 was $51,480. In the second quarter of 2022, it was around $54,132.
One thing to note is that the information from the Bureau of Labor Statistics may differ from that of the Census Bureau. This is because they use different methods to collect and analyze data.
Demographics Stats
When it comes to determining the median or average income, gender and age play a major role. The median income and potential lifetime earnings can vary quite a bit based on these factors. 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.
Median Annual Income by Gender
As of 2022, female employees who worked full-time year-round still earned less than their male counterparts. There has been some progress towards achieving equal pay and bridging the annual income.
However, there is still a significant gap in earnings based on gender. The data shows that female workers earn $6,544 to $14,521 less than their male peers. Several factors may contribute to 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 taking care of elderly parents
- Men working at jobs or in industries that traditionally pay higher
- Certain demographics receive more discrimination when it comes to annual U.S. salary
Here’s an overview of earnings based on gender for the past decade or so. The data pertains to those who work year-round at full-time civilian jobs.
Median American Income Male vs. Female
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 is an improvement over previous years.
The Average American make 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 average income by age:
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 a bachelor’s degree make more than twice as much money as people without one.
- 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 level.
For the most part, people made around $2,000 more per year in 2019 than they did in 2020. This is regardless of educational attainment level.
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.
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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 they 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:
Conclusion
Anyone who wants to make a salary comparison for their annual net income should start with the median U.S. salary for their demographic. Although the numbers may vary, this is a great way of determining whether they’re making a competitive salary or not. It’s also helpful for those who want to know how much the average American makes.
Remember, census data can provide an estimate, but many factors play into what the median U.S. salary is. This includes employment type, age, gender, and industry.
FAQs
What is a good average salary in the US?
A good average salary is $67,521, the annual median income in the U.S. For some people, a lower or higher annual salary may be required. This depends on factors like short-term and long-term goals, lifestyle preferences, and specific circumstances. For example, someone with high amounts of student debt or medical bills may need to make more money. On the other hand, someone living in an inexpensive neighborhood with minimal debt may be comfortable with a lower salary.
What percentage of Americans make over $100k?
Around 24% of Americans make at least $100,000, according to census data.
What percentage of Americans have a net worth of over $1M?
According to CNBC, around 8% of Americans have a net worth of at least $1 million. Other research puts that number at closer to 10%.
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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.
