Whether you’re deciding on a new career path or wondering whether 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 2021 was $60,575 — an 8.89% jump from the previous year. The U.S. Bureau of Labor Statistics (BLS) estimates the average worker made closer to $67,610 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.
Image Credit: nensuria/istockphoto.
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.
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.
The following table shows the median annual salary for a three-year period.
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.
Image Credit: PeopleImages.
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, $353,970 per year
- Dentist, $177,770
- Aircraft pilots and flight engineer, $169,540
- Lawyer and judicial law clerk, $146,220
- Public relations manager, $138,000
- Air traffic controller, $127,920
Image Credit: Drazen Zigic/istockphoto.
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 $70,960.
Image Credit: mihailomilovanovic/istockphoto.
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 $33,800; a woman of the same age earns $31,460, per the latest data available from the BLS. Likewise, the median annual salary for a man aged 25 and older is $60,320; a woman of the same age earns $49,608.
Image Credit: santypan/istockphoto.
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 $100,532 — much higher than Mississippi’s median annual income of $61,205.
Below 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, 2022.
Image Credit: Dejan Marjanovic/istockphoto.
Alabama
Average pay: $70,250
Image Credit: Cavan Images/istockphoto.
Alaska
Average pay: $108,072
Image Credit: Martina Birnbaum/istockphoto.
Arizona
Average pay: $79,110
Image Credit: 4kodiak/istockphoto.
Arkansas
Average pay: $70,169
Image Credit: pabradyphoto/istockphoto.
California
Average pay: $97,092
Image Credit: Spondylolithesis/istockphoto.
Colorado
Average pay: $100,744
Image Credit: milehightraveler/istockphoto.
Connecticut
Average pay: $108,409
Image Credit: SeanPavonePhoto/istockphoto.
Delaware
Average pay: $96,841
Image Credit: DenisTangneyJr/istockphoto.
District of Columbia
Average pay: $138,342
Image Credit: Sean Pavone/istockphoto.
Florida
Average pay: $75,057
Image Credit: pidjoe/istockphoto.
Georgia
Average pay: $79,980
Image Credit: rodclementphotography/istockphoto.
Hawaii
Average pay: $100,532
Image Credit: wingmar/istockphoto.
Idaho
Average pay: $76,635
Image Credit: Sean Pavone/istockphoto.
Illinois
Average pay: $97,067
Image Credit: Shelly Bychowski/istockphoto.
Indiana
Average pay: $81,783
Image Credit: Ying Luo/500px/Getty Images.
Iowa
Average pay: $85,758
Image Credit: Jacob Boomsma/istockphoto.
Kansas
Average pay: $88,369
Image Credit: TriggerPhoto/istockphoto.
Kentucky
Average pay: $71,501
Image Credit: Wirestock/istockphoto.
Louisiana
Average pay: $71,371
Image Credit: ghornephoto/istockphoto.
Maine
Average pay: $87,051
Image Credit: Sean Pavone/istockphoto.
Maryland
Average pay: $113,994
Image Credit: ferrantraite/istockphoto.
Massachusetts
Average pay: $117,415
Image Credit: ivanastar/istockphoto.
Michigan
Average pay: $84,245
Image Credit: peeterv/istockphoto.
Minnesota
Average pay: $106,445
Image Credit: Davel5957/istockphoto.
Mississippi
Average pay: $61,205
Image Credit: peeterv/istockphoto.
Montana
Average pay: $79,652
Image Credit: powerofforever/istockphoto.
Nebraska
Average pay: $91,076
Image Credit: Matt Bills/istockphoto.
New Hampshire
Average pay: $113,013
Image Credit: DenisTangneyJr/istockphoto.
Nevada
Average pay: $91,076
Image Credit: 4kodiak/istockphoto.
New Jersey
Average pay: $117,697
Image Credit: Stefan Tomic/istockphoto.
New Mexico
Average pay: $66,183
Image Credit: Sean Pavone/istockphoto.
New York
Average pay: $96,854
Image Credit: TriggerPhoto / istockphoto.
North Carolina
Average pay: $76,386
Image Credit: Mark Howard/istockphoto.
North Dakota
Average pay: $94,950
Image Credit: DenisTangneyJr/istockphoto.
Ohio
Average pay: $82,734
Image Credit: Sean Pavone/istockphoto.
Oklahoma
Average pay: $71,397
Image Credit: Tiago_Fernandez/istockphoto.
Oregon
Average pay: $93,773
Image Credit: BruceBlock/istockphoto.
Pennsylvania
Average pay: $92,441
Image Credit: Sean Pavone/istockphoto.
Rhode Island
Average pay: $101,104
Image Credit: Pgiam/istockphoto.
South Carolina
Average pay: $75,128
Image Credit: SeanPavonePhoto/istockphoto.
South Dakota
Average pay: $87,475
Image Credit: DenisTangneyJr/istockphoto.
Tennessee
Average pay: $75,394
Image Credit: benedek/istockphoto.
Texas
Average pay: $80,733
Image Credit: dszc/istockphoto.
Utah
Average pay: $90,629
Image Credit: 4kodiak/istockphoto.
Vermont
Average pay: $92,628
Image Credit: DenisTangneyJr/istockphoto.
Virginia
Average pay: $102,869
Image Credit: peeterv/istockphoto.
Washington
Average pay: $104,644
Image Credit: 400tmax/istockphoto.
West Virginia
Average pay: $71,757
Image Credit: DenisTangneyJr/istockphoto.
Wisconsin
Average pay: $92,586
Image Credit: benkrut/istockphoto.
Wyoming
Average pay: $88,902
Image Credit: DenisTangneyJr/istockphoto.
US Income by Race
As the BLS data below shows, there is often a pay disparity among workers of different races and ethnicities.
- Asian, $69,056 per year
- White, $52,936
- Black or African American, $41,652
- Hispanic or Latino, $40,404
Image Credit: Sanja Radin/istockphoto.
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.
Image Credit: skynesher/istockphoto.
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 are available.
Image Credit: RichVintage/istockphoto.
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.
Image Credit: somethingway/istockphoto.
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 $60,575. 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.
Please understand that this information provided is general in nature and shouldn’t be construed as a recommendation or solicitation of any products offered by SoFi’s affiliates and subsidiaries. In addition, this information is by no means meant to provide investment or financial advice, nor is it intended to serve as the basis for any investment decision or recommendation to buy or sell any asset. Keep in mind that investing involves risk, and past performance of an asset never guarantees future results or returns. It’s important for investors to consider their specific financial needs, goals, and risk profile before making an investment decision.
The information and analysis provided through hyperlinks to third party websites, while believed to be accurate, cannot be guaranteed by SoFi. These links are provided for informational purposes and should not be viewed as an endorsement. No brands or products mentioned are affiliated with SoFi, nor do they endorse or sponsor this content.
Communication of SoFi Wealth LLC an SEC Registered Investment Advisor
SoFi isn’t recommending and is not affiliated with the brands or companies displayed. Brands displayed neither endorse or sponsor this article. Third party trademarks and service marks referenced are property of their respective owners.
Communication of SoFi Wealth LLC an SEC Registered Investment Adviser. Information about SoFi Wealth’s advisory operations, services, and fees is set forth in SoFi Wealth’s current Form ADV Part 2 (Brochure), a copy of which is available upon request and at www.adviserinfo.sec.gov. Liz Young is a Registered Representative of SoFi Securities and Investment Advisor Representative of SoFi Wealth. Her ADV 2B is available at www.sofi.com/legal/adv.
Image Credit: FilippoBacci/istockphoto.
More from MediaFeed
Do you make more than the average American your age?
Image Credit: JLco – Julia Amaral/istockphoto.
