Do You Make More Than The Average Person in Your State?
What Is the Average Pay in the United States Per Year?
Whether you’re deciding on a new career path or wondering if you’re being paid enough, it can help to know what the typical American worker earns per year.
Based on the latest data available from the Social Security Administration (SSA), the average annual pay in the U.S. in 2022 was $63,795 — a 5.32% jump from the previous year. The U.S. Bureau of Labor Statistics (BLS) estimates the average worker made closer to $69,986 that same year. The amount you make may depend on a number of factors, including your occupation, where you live, your gender, and your level of education.
Key Findings
Let’s take a closer look at how the average annual pay in the U.S. has changed over a three-year period based on data from both the SSA and BLS.
Median Annual Salary
It can also be helpful to look at median earnings, which represent the midpoint of salaries in the U.S. In other words, half of the salaries fall below the median, and half are higher than the median.
As you can see, average and median incomes have risen each year. However, average salaries can be affected by various factors such as your occupation, age, and gender. Note that the numbers above also don’t include unearned income.
The following table shows the median annual salary for a three-year period.
Examples of High-Salary Jobs in the US
Some industries tend to pay more than others, which means the career you choose may affect how much you earn. Here’s a sampling of high-paying jobs and their average annual salary, according to the BLS:
Cardiologist, $421,330
Dentist, $172,290
Aircraft pilots and flight engineer, $225,740
Lawyer and judicial law clerk, $161,680
Public relations manager, $150,030
Air traffic controller, $130,840
Average American Income by Occupation
While salaries tend to vary based on geography, seeing how much certain types of jobs pay can be informative. Let’s take a look at different occupations and how much they typically pay.
Keep in mind that average salaries may differ depending on the specific occupation you have. For example, although claims adjusters fall under the business and financial operations category, their average salary is around $72,040.
US Income by Gender
Demographics, specifically gender, are another factor to consider. By and large, men tend to outearn women throughout their career. The median annual salary for a 16- to 24-year-old man is $38,688; a woman of the same age earns $36,088, per the latest data available from the BLS. Likewise, the median annual salary for a man aged 25 and older is $64,376; a woman of the same age earns $52,520.
Median Income by State
Wages often vary based on where you live. In many cases, states with higher costs of living also have higher wages. For example, the median annual income in Hawaii is $104,704 — much higher than Mississippi’s median annual income of $70,950.
Next is the median income by state for a household of three people, according to data compiled by the Census Bureau between April 1 and May 14, 2023.
Alabama
Median annual income: $77,419
Alaska
Median annual income: $113,035
Arizona
Median annual income: $90,193
Arkansas
Median annual income: $74,475
California
Median annual income: $104,785
Colorado
Median annual income: $113,822
Connecticut
Median annual income: $121,958
Delaware
Median annual income: $103,598
District of Columbia
Median annual income: $146,440
Florida
Median annual income: $83,396
Georgia
Median annual income: $87,742
Hawaii
Median annual income: $104,704
Idaho
Median annual income: $87,960
Illinois
Median annual income: $101,951
Indiana
Median annual income: $89,800
Iowa
Median annual income: $95,739
Kansas
Median annual income: $88,271
Kentucky
Median annual income: $75,700
Louisiana
Median annual income: $73,393
Maine
Median annual income: $95,531
Maryland
Median annual income: $122,385
Massachusetts
Median annual income: $127,172
Michigan
Median annual income: $93,873
Minnesota
Median annual income: $114,267
Mississippi
Median annual income: $70,950
Missouri
Median annual income: $89,515
Montana
Median annual income: $84,019
Nebraska
Median annual income: $99,845
Nevada
Median annual income: $86,618
New Hampshire
Median annual income: $136,886
New Jersey
Median annual income: $122,540
New Mexico
Median annual income: $71,283
New York
Median annual income: $103,444
North Carolina
Median annual income: $87,369
North Dakota
Median annual income: $93,240
Ohio
Median annual income: $90,912
Oklahoma
Median annual income: $77,166
Oregon
Median annual income: $101,989
Pennsylvania
Median annual income: $100,888
Rhode Island
Median annual income: $109,514
South Carolina
Median annual income: $82,114
South Dakota
Median annual income: $92,794
Tennessee
Median annual income: $85,014
Texas
Median annual income: $87,228
Utah
Median annual income: $102,941
Vermont
Median annual income: $103,763
Virginia
Median annual income: $111,017
Washington
Median annual income: $116,345
West Virginia
Median annual income: $81,964
Wisconsin
Median annual income: $99,261
Wyoming
Median annual income: $93,651
US Income by Race
As the BLS data below shows, there is often a pay disparity among workers of different races and ethnicities.
Asian, $79,456 per year
White, $60,164
Black or African American, $50,284
Hispanic or Latino, $45,968
How Does Your Income Stack Up?
Now that you’ve seen some of the average and median annual salaries by occupation, location, gender, and race or ethnicity, how does yours compare? If you’re not making as much as you’d like, you may want to research wages in your industry and region, and use that information to help you negotiate a higher salary. If you’re ready to make a bigger change, you can use this data as you consider whether to switch to a more lucrative field or relocate to a higher-paying region.
How to Stretch Your Income
Here are some different strategies to help you make the most of the money you make:
Track Your Spending
Understanding exactly where your money is going can help you keep tabs on where your money is going and identify areas where you can cut back. Consider using a spending app to track your spending and saving.
Negotiate Bills
Want to lower monthly expenses, such as your cell phone or internet services? Consider calling up various providers to see if you’re able to get a better deal or if there are promotions you can take advantage of.
Cut Back on Large Expenses
Housing, food, and transportation tend to be the largest line budget items. Explore ways to trim your biggest costs. Examples include refinancing your mortgage, negotiating your rent, shopping at discount grocery stores, and taking public transportation when possible.
Sharpen Your Marketable Skills
Accepting networking opportunities and taking professional development courses could help you become more marketable as an employee. This in turn could set you up to earn more in the long run. If you’re on a tight budget, look into no- or low-cost ways to cultivate high-income skills, and ask your employer if there are any free resources available.
Pros and Cons of a High Salary
A high income can be great, but it does come with some downsides.
Pros:
Improved quality of life: With more money, you can afford a higher standard of living and be able to afford different amenities such as better access to healthcare and food.
Financial security: The more you earn, the more you can feel secure you have enough money to afford the things you want and need.
Ability to achieve financial goals faster: Having more disposable income could mean you can set more money aside for long- and short-term savings goals, like retirement or going on a family vacation.
Cons:
Higher taxes: Earning more can put you in a higher tax bracket. However, there are ways to reduce your taxable income.
Pressure to maintain income: If you’re accustomed to a certain living standard, you may feel like you need to keep earning the same amount or more to maintain it.
More work stress: In many cases, higher-paying jobs come with more responsibilities and, at times, longer hours.
The Takeaway
Understanding what the average American worker makes in a year can come in handy, especially if you’re considering a new career path, negotiating a higher salary, or looking for a new place to live. According to the latest data from the Social Security Administration, the average annual pay in the U.S. is $63,795. But the amount you earn may depend on a wide range of factors, such as the industry you work in, where you live, your gender, and your race or ethnicity.
This article originally appeared on SoFi.com and was syndicated by MediaFeed.org.
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