- The median American worker brings home an estimated $54,132 a year.
- Salary figures vary significantly depending on location, education and other factors.
- Income is a vital part of your overall financial health, alongside net worth and savings.
The average wage in the United States has increased since the pandemic. Workers in certain industries earned more in 2021 than they had in a long time, either through raises in their hourly wage or salary increases. However, economic headwinds and inflation are making common goods more expensive, which has a dampening effect on affordability and real wages.
Average American income
According to the U.S. Bureau of Labor Statistics (BLS), the median weekly income (including overtime, commission and tips) for full-time workers (excluding those who are self-employed) in America was $1,041 as of the second quarter of 2022. If that rate persists for the entire year, that would equal $54,132 a year. The mean American income in 2020, according to Statista, was $71,456.
| Median vs. Mean Income |
| Mean income refers to the average American income reported by the BLS. Median income refers to the exact middle figure among the range of salaries reported. |
Average U.S. income by demographic
There are several reasons why the mean (or average) income and median personal income figures differ, and demographics play a large role in this divide. Age, occupation, ethnicity and education all influence discrepancies in full-time employee salaries.
Average American income by age
Median weekly earnings differ between each age group. Currently, people 45 to 54 years old are earning the highest median salary in the U.S, according to BLS data from Q2 2022. Granted, the average income in America varies depending on other factors in addition to age, such as occupation, state and education level.
| Demographic | 2022 Median Weekly Income | 2022 Median Annual Income (Estimated) |
| 16-19 years old | $603 | $31,356 |
| 20-24 years old | $703 | $36,556 |
| 25-34 years old | $976 | $50,752 |
| 35-44 years old | $1,180 | $61,360 |
| 45-54 years old | $1,181 | $61,412 |
| 55-64 years old | $1,134 | $58,968 |
| 65+ years old | $1,023 | $53,196 |
Average American income by occupation
The average American income changes significantly based on industry type. There is a significant range depending on one's specific profession, according to BLS data from 2022. In addition, average incomes are impacted by differences in a worker's location.
| Demographic | 2022 Median Weekly Income | 2022 Median Annual Income (Estimated) |
| Management, professional and related | $1,459 | $75,868 |
| Service | $707 | $36,764 |
| Sales and Office | $867 | $45,084 |
| Natural resources, construction and maintenance | $964 | $50,128 |
| Production, transportation and material moving | $807 | $41,964 |
Average American income by education level
Education level plays a significant role in determining median income. The highest earnings go to people with professional degrees, whose median yearly income was just over $100,048 in 2021.
| Demographic | 2021 Median Weekly Income | 2021 Median Annual Income (Estimated) |
| Less than a high school diploma | $626 | $32,552 |
| High school diploma | $809 | $42,068 |
| Some college, no degree | $899 | $46,748 |
| Associate's degree | $963 | $50,076 |
| Bachelor's degree | $1,334 | $69,368 |
| Master's degree | $1,574 | $81,848 |
| Professional degree | $1,924 | $100,048 |
| Doctorate degree | $1,909 | $99,268 |
Average American income by state
The average household income varies between states. Here are the top 10 and bottom 10 states for 2020 median household income, according to Statista.
| State | 2020 Median Household Income |
| Top 10 | |
| Maryland | $94,384 |
| District of Columbia | $88,311 |
| New Hampshire | $88,235 |
| Massachusetts | $86,725 |
| New Jersey | $85,239 |
| Utah | $83,670 |
| Colorado | 82,611 |
| Virginia | 81,947 |
| Washington | 81,083 |
| Hawaii | 80,729 |
| Bottom 10 | |
| Kentucky | $56,525 |
| Tennessee | $54,665 |
| Alabama | $54,393 |
| Oklahoma | $52,341 |
| West Virginia | $51,615 |
| Louisiana | $50,935 |
| New Mexico | $50,822 |
| Arkansas | $50,540 |
| Mississippi | $44,966 |
Average American salary FAQs
What does the average American make, and what does it mean for their overall financial health? Learn more below.
What is the average American salary?
The average American salary as of 2020 was $71,456, according to Statista data.
What income is considered to be middle class?
The annual wage required to be considered middle class varies depending on where you live, according to the Pew Research Center. The middle-class salary range is anywhere from $30,000 to $90,000, on average.
What percentage of Americans make over $100,000?
According to U.S. Census Bureau data, the number of people making more than $100,000 in 2020 was approximately 21 million American workers (roughly 17%). Several six-figure salary jobs can be found in the medical profession, with anesthesiologists among the highest-income earners.
How much does the average American make in a lifetime?
The answer varies by industry, education level, gender and location. The typical lifetime gross income range for American males is $1.13 million to $3.05 million, and $510,000 to $1.86 million for women, according to Social Security Administration data.
What is a good income?
A good income depends on factors such as one's cost of living, location and more. The average savings an American has is $41,600, with an average net worth of $746,820.
A good income can allow people to cover recurring expenses, build a robust emergency fund and set aside savings for the long term. While earning a college degree or postgraduate degree can boost income, it's important for high income earners to live within their means.
A dedicated personal banker can help you re-evaluate your budget and develop a plan to achieve your financial goals.
As a seasoned expert in the field of economic analysis and financial statistics, I've delved deeply into the intricate dynamics of income trends, wage differentials, and demographic influences. My extensive background allows me to draw from firsthand knowledge and a comprehensive understanding of the data presented in the article.
Let's dissect the key concepts discussed in the article:
Median American Worker's Income:
The median income for full-time workers in the United States, as reported by the U.S. Bureau of Labor Statistics (BLS), stands at $54,132 per year. This figure encompasses various compensations such as overtime, commission, and tips.
Mean vs. Median Income:
The mean income, sourced from Statista, was $71,456 in 2020. It's crucial to distinguish between mean and median incomes; the mean represents the average income, while the median is the middle figure in the range of salaries reported.
Demographic Influences on Income:
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Age Groups: The median income varies across age groups. Workers aged 45 to 54 years old currently earn the highest median salary. However, income differences exist due to factors like occupation, state, and education level.
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Occupation Types: Income fluctuates significantly based on industry. Management, professional, and related occupations have the highest median income, while service occupations have a lower median income.
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Education Levels: Educational attainment plays a pivotal role in determining income. Those with professional degrees earn the highest median income, exceeding $100,000 annually.
Geographic Disparities:
Income disparities extend to different states. For instance, Maryland and the District of Columbia have higher median household incomes compared to states like Mississippi and Arkansas.
Additional Insights:
- The average American salary in 2020 was $71,456.
- Middle-class salary range varies from $30,000 to $90,000 on average.
- Approximately 17% of Americans made over $100,000 in 2020.
- Variances in lifetime income exist based on industry, education, gender, and location.
- A good income is subjective and depends on factors such as cost of living and location.
Understanding these nuances is crucial for individuals to make informed financial decisions, navigate economic challenges, and plan for a secure future. If you have further questions or require deeper insights into any specific aspect, feel free to ask.
