The average salary in the U.S. is $60,575, according to the latest data from the Social Security Administration. How your salary compares will depend on your industry and skilI set, as you’d expect. What you might not realize is that your salary is also greatly influenced by where you live, since salaries go hand in hand with the cost of living.
Let’s take a closer look at the average salary in the U.S. and how income varies from state to state.
Image Credit: Liudmila Chernetska/istockphoto.
What Is the Average US Salary (2022)
The national average salary is $60,575. That is the sum of all incomes divided by the number of workers. Where someone lives, their industry, education level, and current demand for that job all contribute to how much a worker earns per year.
Image Credit: MundusImages/istockphoto.
Average Salary vs Median Salary: What’s the Difference?
The Bureau of Labor Statistics provides data on median pay. As of Q4 2022, the median weekly earnings of full-time workers was $1,085, or $56,420 per year. The median is the midpoint in the data set, with 50% of incomes falling above that figure, and 50% below.
Why are the average and median income figures different? With averages, unusually high or low numbers can skew the results. For instance, billionaires might drive the average higher than what the typical worker actually makes. The median is less affected by outliers.
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Alabama
Average: $44,930
Median: $52,138
Image Credit: Art Wager/istockphoto.
Alaska
Average: $59,290
Median: $67,010
Image Credit: Jacob Boomsma/istockphoto.
Arizona
Average: $50,930
Median: $58,462
Image Credit: 4kodiak/istockphoto.
Arkansas
Average: $42,690
Median: $48,882
Image Credit: dlewis33/istockphoto.
California
Average: $61,290
Median: $65,895
Image Credit: Spondylolithesis/istockphoto.
Colorado
Average: $57,690
Median: $70,952
Image Credit: milehightraveler/istockphoto.
Connecticut
Average: $62,350
Median: $72,497
Image Credit: SeanPavonePhoto/istockphoto.
Delaware
Average: $54,370
Median: $65,072
Image Credit: DenisTangneyJr/istockphoto.
District of Columbia
Average: $89,900
Median: $74,266
Image Credit: alexsl/istockphoto.
Florida
Average: $47,750
Median: $55,681
Image Credit: Angel Soto/istockphoto.
Georgia
Average: $49,620
Median: $55,600
Image Credit: f11photo/istockphoto.
Hawaii
Average: $54,930
Median: $54,942
Image Credit: Art Wager/istockphoto.
Idaho
Average: $44,890
Median: $61,456
Image Credit: Sean Pavone/istockphoto.
Illinois
Average: $55,130
Median: $54,155
Image Credit: Shelly Bychowski/istockphoto.
Iowa
Average: $47,330
Median: $55,069
Image Credit: Ron_Thomas/istockphoto.
Kansas
Average: $46,520
Median: $51,978
Image Credit: TriggerPhoto/istockphoto.
Kentucky
Average: $44,020
Median: $49,719
Image Credit: alexeys/istockphoto.
Louisiana
Average: $44,170
Median: $57,955
Image Credit: Sean Pavone/istockphoto.
Maine
Average: $48,470
Median: $75,214
Image Credit: Sean Pavone/istockphoto.
Maryland
Average: $60,230
Median: $75,077
Image Credit: Jon Bilous/istockphoto.
Massachusetts
Average: $65,680
Median: $56,343
Image Credit: ivanastar/istockphoto.
Michigan
Average: $50,780
Median: $65,514
Image Credit: pawel.gaul/istockphoto.
Minnesota
Average: $55,890
Median: $47,446
Image Credit: Davel5957/istockphoto.
Mississippi
Average: $40,090
Median: $53,547
Image Credit: SeanPavonePhoto/istockphoto.
Missouri
Average: $47,820
Median: $57,448
Image Credit: Art Wager/istockphoto.
Montana
Average: $45, 370
Median: $53,892
Image Credit: Mimi Ditchie Photography / Getty.
Nebraska
Average: $48,250
Median: $56,949
Image Credit: Matt Bills/istockphoto.
Nevada
Average: $47,210
Median: $75,432
Image Credit: 4kodiak/istockphoto.
New Hampshire
Average: $53,950
Median: $75,321
Image Credit: DenisTangneyJr/istockphoto.
New Jersey
Average: $59,980
Median: $49,757
Image Credit: Ultima_Gaina/istockphoto.
New Mexico
Average: $47,040
Median: $63,548
Image Credit: Sean Pavone/istockphoto.
New York
Average: $63,970
Median: $53,687
Image Credit: carterdayne/istockphoto.
North Carolina
Average: $48,550
Median: $58,318
Image Credit: Kruck20/istockphoto.
North Dakota
Average: $50,430
Median: $54,877
Image Credit: Wirestock/istockphoto.
Ohio
Average: $49,430
Median: $51,435
Image Credit: Sean Pavone/istockphoto.
Oklahoma
Average: $45,620
Median: $64,975
Image Credit: Tiago_Fernandez/istockphoto.
Oregon
Average: $53,890
Median: $60,640
Image Credit: Shunyu Fan/istockphoto.
Pennsylvania
Average: $51,340
Median: $67,541
Image Credit: Sean Pavone/istockphoto.
Rhode Island
Average: $57,220
Median: $54,821
Image Credit: SeanPavonePhoto/istockphoto.
South Carolina
Average: $44,380
Median: $53,188
Image Credit: SeanPavonePhoto/istockphoto.
South Dakota
Average: $49,920
Median: $55,441
Image Credit: DenisTangneyJr/istockphoto.
Tennessee
Average: $45,650
Median: $70,425
Image Credit: benedek/istockphoto.
Texas
Average: $50,490
Median: $74,266
Image Credit: dszc/istockphoto.
Utah
Average: $49,420
Median: $67,918
Image Credit: Sean Pavone/istockphoto.
Vermont
Average: $51,120
Median: $74,398
Image Credit: DenisTangneyJr/istockphoto.
Virginia
Average: $56,740
Median: $57,934
Image Credit: peeterv/istockphoto.
Washington
Average: $62,020
Median: $60,510
Image Credit: 400tmax/istockphoto.
West Virginia
Average: $43,420
Median: $53,244
Image Credit: DenisTangneyJr/istockphoto.
Wisconsin
Average: $48,850
Median: $57,934
Image Credit: Sean Pavone/istockphoto.
Wyoming
Average: $49,760
Median: $60,510
Image Credit: DenisTangneyJr/istockphoto.
Why Do States Have Different Average Salaries?
The chart shows that the average salary in some states is quite different from the average salary nationwide. That’s partly because the cost of living, which affects how much a company pays its employees, varies significantly by state. (Also, inflation impacts states to varying degrees.)
In addition, industries with a concentrated presence in certain states — such as banking or automobile manufacturing — can affect the overall quality of job opportunities in that area.
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Which Regions Pay the Most?
Salaries tend to be higher in some areas of the country. Cities on the West Coast and in the Northeast have some of the highest average salaries:
- Massachusettes
- New York
- Washington
- California
- New Jersey
- Connecticut
- Maryland
Remember, while these states have higher incomes, they may also have a much higher cost of living and higher housing prices.
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Which Regions Pay the Least?
The South is home to states that tend to pay the least:
- South Carolina
- Kentucky
- South Dakota
- Arkansas
- West Virginia
- Mississippi
Image Credit: South_agency/istockphoto.
Should You Move to Make More Money?
When deciding where to live, it’s important to remember that just because a state has a higher average salary, doesn’t mean it’s more profitable for workers to live there. Higher salaries tend to correlate with a higher cost of living.
Before making a major move, first try living below your means. One reason that people who make more money still have trouble paying their bills is the phenomenon of lifestyle creep. This is when your so-called needs expand to consume your current salary.
One of the most effective ways to counteract lifestyle creep is to downsize your home. Reducing your housing expenses to less than 30% of your gross income can help you pay down debt, increase savings, and become more conscious of how lifestyle choices affect spending.
Image Credit: SDI Productions/istockphoto.
The Takeaway
The average annual average salary in the U.S. is $60,575. The median annual salary, which is often less skewed by outlying numbers, is $56,420. It’s worth noting that average and median salaries vary quite a bit by state. States in the Northeast and on the West Coast tend to pay higher salaries, while those in the South pay less. What’s stopping people from moving to a higher paying state? Often, it’s housing prices, which rise along with the cost of living in “richer” states.
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