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What's the Average Income in the United States?

4 min read

Last Updated: November 21, 2024

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Key Takeaways

The 2023 median household income in the United States was $80,610 (including salary, investment earnings, and more).
The average salary in 2023 for an individual worker was $65,470.
Demographics like location, occupation, race, and gender significantly influence average wages.

Annual income influences everything from the credit cards you use to the home you live in. It’s often the foundation of your financial life. Factors like the poverty rate and gross domestic product provide insight into the country’s overall economic well-being. However, income may be more relevant to the average worker. Understanding the average income in the United States could help you make financial decisions for you and your family.

The average income in the United States

Income includes not only pay but also money from investments, gifts, and more. Because of this, the average annual income in the United States may not reflect the average American’s financial reality. Income inequality skews the numbers, making it seem like a typical person makes much more than they really do. Other financial measures provide a more accurate picture.

Instead of the average, the U.S. Census Bureau reports on median salary. Median means that half of the people earn more, and half of the people earn less. The income report published in September 2024 reports on 2023 numbers. For 2023, the U.S. median household income was $80,610. However, median wage varies across field of work and demographics like gender, race, age group, and education.

The United States Bureau of Labor Statistics (BLS) estimates median wages across approximately per BLS 830 occupations each year. As with overall income, wages vary across gender, race, nationality, and other demographic figures. Earnings also depend on geographic location and occupation.

The BLS May 2023 National Occupational Employment and Wage Estimates reports that $65,470 was the annual median wage.

States with the highest average income

Workers in the following five states have the highest average 2023 annual incomes:

Massachusetts: $91,512
New York: $91,428
Washington: $88,559
California: $87,490
Connecticut: $83,769

These states share some traits. They’re all coastal states, most with notable metropolitans. Each state also mandates a higher minimum wage than the federal minimum wage requirement. According to the Department of Labor, hourly rates range from $15.13 in New Jersey to $16.28 in Washington.

States with the lowest average income

Workers in the following five states have the lowest average 2023 annual incomes:

Mississippi: $49,128
Arkansas: $55,692
West Virginia: $55,964
South Dakota: $56,067
Idaho: $56,300

These states are in different regions across the country, from the southern coast to the Midwest. Mississippi, Arkansas, Idaho, and West Virginia each have higher poverty rates than the national average of 11.1% as of 2021 , the USDA explains. Idaho is an exception, with a poverty rate of 10.8%.

Average income by occupation

Understanding the median annual earnings in your field could help in a couple ways. First, doing economic research can give insight if you need to negotiate your salary. Second, it could help you make career decisions, especially if you plan to move into a new field. While the full BLS analysis spans hundreds of professions, we’ve included some common fields with their median salary below.

Office and administrative support

Office and administrative workers earn an average of $47,940. This broad category includes roles like financial clerks, postal service workers, proofreaders, telephone operators, and admin assistants.

Sales

The median earnings for those in sales roles is $53,280. The sales category encompasses a wide range of fields, including real estate, retail, and life insurance. The kind of product a person sells could have a big impact on their income level. For example, those working in computer manufacturing, information services, and security products all have average salaries over $100,000.

Management

Many management roles pay significantly more than the national average. General and operations managers might earn an average of $129,390 annually. Salaries within this category could also vary. For example, restaurant managers have an average salary of $71,570, and bank managers average $263,210.

Web developers, IT, and computer support

Computer and mathematical occupations are another high-paying group, with an average wage of $113,140. Roles in this category include web developers, information security analysts, data scientists, actuaries, and computer support specialists.

A wide range of factors could impact your personal income. Your background, education level, and your unique responsibilities can all affect your earnings. Another income factor is if and how you invest your savings. Still, insight into average wages could inform financial decision-making.

Did you know?

Income can be an important factor in your financial health, along with your credit score. If you’re seeking new lines of credit but haven’t reviewed your credit score in some time, it can be good to review your score before applying for new credit, like a credit card or personal loan.

Learn More

Your income and net worth, especially your salary, is central to your life. Understanding where your income and wages fit into national trends could help you make the best choices today for a strong financial future.

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