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.
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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.
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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
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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.
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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.
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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.
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Alabama
Average pay: $70,250
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Alaska
Average pay: $108,072
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Arizona
Average pay: $79,110
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Arkansas
Average pay: $70,169
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California
Average pay: $97,092
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Colorado
Average pay: $100,744
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Connecticut
Average pay: $108,409
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Delaware
Average pay: $96,841
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District of Columbia
Average pay: $138,342
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Florida
Average pay: $75,057
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Georgia
Average pay: $79,980
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Hawaii
Average pay: $100,532
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Idaho
Average pay: $76,635
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Illinois
Average pay: $97,067
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Indiana
Average pay: $81,783
Image Credit: Ying Luo/500px/Getty Images.
Iowa
Average pay: $85,758
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Kansas
Average pay: $88,369
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Kentucky
Average pay: $71,501
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Louisiana
Average pay: $71,371
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Maine
Average pay: $87,051
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Maryland
Average pay: $113,994
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Massachusetts
Average pay: $117,415
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Michigan
Average pay: $84,245
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Minnesota
Average pay: $106,445
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Mississippi
Average pay: $61,205
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Montana
Average pay: $79,652
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Nebraska
Average pay: $91,076
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New Hampshire
Average pay: $113,013
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Nevada
Average pay: $91,076
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New Jersey
Average pay: $117,697
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New Mexico
Average pay: $66,183
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New York
Average pay: $96,854
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North Carolina
Average pay: $76,386
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North Dakota
Average pay: $94,950
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Ohio
Average pay: $82,734
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Oklahoma
Average pay: $71,397
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Oregon
Average pay: $93,773
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Pennsylvania
Average pay: $92,441
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Rhode Island
Average pay: $101,104
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South Carolina
Average pay: $75,128
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South Dakota
Average pay: $87,475
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Tennessee
Average pay: $75,394
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Texas
Average pay: $80,733
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Utah
Average pay: $90,629
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Vermont
Average pay: $92,628
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Virginia
Average pay: $102,869
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Washington
Average pay: $104,644
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West Virginia
Average pay: $71,757
Image Credit: DenisTangneyJr/istockphoto.
Wisconsin
Average pay: $92,586
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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
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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.
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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.
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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.
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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.
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