Average salary in the US by state, age & gender Sage Advice US

In general, people in bigger cities have higher median incomes than those living in smaller towns or rural areas. To adjust for changes in the cost of living over time, historical income and earnings estimates in this report are expressed in real or 2022 dollars. The Census Bureau continues to use the Consumer Price Index for all Urban Consumers Retroactive Series (R-CPI-U-RS), also produced by the BLS, to adjust income estimates before 2000. The annual index values are available in Appendix A. For more in-depth discussion of the effects of using different inflation indices on household income estimates, refer to Appendix C. For older workers (aged 60 or over) living outside London, the East and the South East of England, as well as Scotland have the highest median weekly wages. In the United States the most widely cited personal income statistics are the Bureau of Economic Analysis’s personal income and the Census Bureau’s per capita money income.

This chart is median income of 15 year olds or older, who have non-zero income.22 Amounts are shown in nominal dollars and in real dollars (in parentheses, 2017 dollars). If you are unsure how much you pay in taxes each year, you should check your tax return, look at your paystub, or consider speaking with an accountant. But once you have all of these numbers in hand, you can simply use the formula below. However, because phrases like “take-home pay”, “biweekly pay“, and “weekly paycheck” can be used ambiguously, it is important to confirm what the numbers actually mean. Your gross yearly income will always be higher than your net income. Let’s take a closer look at the nuances involved in these phrases, as well as how to calculate your net annual income.

Average earnings by age

We’ll also explore how salaries are changing over time so you can plan for the future of your business. To support the facts within our articles FinMasters editorial team uses only high quality primary sources. Read our editorial policy to learn more about how we make sure our content is unbiased, accurate and up-to-date. Asian workers tend to annual income make more than any other race – $94,759 on average, followed by White ($77,396) and Black ($60,652) communities1. An average can be heavily skewed by a few very high or very low values, so the median is usually a better overall guide.

Income typically rises throughout a worker’s career, with the highest median earnings between the ages of 45 and 54, where employees earn an average hourly wage of $34.40. This group often includes professionals in leadership roles or those with two decades or more of experience in their field. They’ve built specialized skills, weathered job changes and often hold higher-paying positions as a result. By the time workers reach 65 and older, the difference grows to more than $21,000. Men in this bracket report a median annual income of $74,100, compared to $52,936 for women.

Changes in Average Salaries

The cost of living varies significantly across states and metro areas. A good salary should allow workers to exceed the basic standards of living in their local area. However, location is a major factor in the cost of living comfortably. A good salary covers living expenses for the worker and their family, allowing them to live comfortably.

• As expected, people just entering the workforce have the lowest yearly incomes.
• National data on taxpayers can also give an indication of typical earnings in the UK.
• Accurately computing your annual gross income is essential for effective financial management in the Philippines.
• It’s a key factor in determining your borrowing capacity, interest rates, and repayment terms.

Are some deductions not taxed by federal income tax?

Yukon, Nunavut, and Northwest Territories, which are home to less than 3% of Canada’s population, were not included in this survey by Statistics Canada. However, Statistics Canada data from 2018 shows an after-tax income of $93,500 for the Northwest Territories, $89,300 for Nunavut, and $73,200 for Yukon. Income statistics are a useful way to measure economic trends in a country.

The younger bracket has a median weekly salary of $1,301, while the older bracket earns a median weekly wage of $1,268. With this adjustment, Mississippi still has the lowest average hourly wage. They offer a rough outline of opportunity—or lack thereof—for people in different life stages. A younger worker might find faster income growth in Massachusetts or New Jersey. But someone looking for more consistent earnings across their career could benefit from states with smaller income gaps across age brackets.

For a family of four with two working adults, the living wage in the US is $25.02 per hour or $104,077.02 per year. The more you know about salary requirements for your team, the easier you can manage payroll expenses. Behind the capital, the next lowest pay gap is 18.3% in Vermont varying across the US up to a considerable 42.3% in Utah with the highest pay gap. While the gender pay gap has remained relatively static for the past five years, it’s gradually approaching parity. In fact, in recent years, men’s salaries have increased at twice the rate of women’s. Unsurprisingly, the age brackets with the lowest earning potential are 16 to 19 and 20 to 24.

What’s the difference between a deduction and withholding?

• BEA’s statistics relate personal income to measures of production, including GDP, and is considered an indicator of consumer spending.
• Sage makes no representations or warranties of any kind, express or implied, about the completeness or accuracy of this article and related content.
• You might receive a large tax bill and possible penalties after you file your tax return.
• Income measures the flow of money and other assets during a given period whereas wealth measures the stock of money and other assets that have accumulated by a certain point in time.

Register with us to become part of an important movement to develop long-term, nonpartisan fiscal solutions for a healthy growing economy. While around 10% of graduates with the highest returns will gain, on average, around half a million pounds due to their higher education. The subject graduates studied will have a big bearing on this, with students of computer science and IT, medicine and law, for example, potentially able to secure higher than average starter salaries.

In some cases, you may need to document fair pay practices or report payroll data. The difference between the highest and lowest brackets is significant. The next most common profession, home health and personal care aides has 46.81% fewer workers (3,689,350). In the US, the most common profession by far is laborers and material movers, with a total of 6,935,980 workers.

Steps to Calculate Annual Income

In our calculators, you can add deductions under “Benefits and Deductions” and select if it’s a fixed amount, a percentage of the gross-pay, or a percentage of the net pay. For hourly calculators, you can also select a fixed amount per hour. For pre-tax deductions, check the Exempt checkboxes, meaning the deduction will be taxed. Below are several measures of income and wealth from those three surveys. The data depicts money income, which is pretax money before the application of tax liabilities or credits.

The average monthly salary in this age group is $5,308 and yearly is $63,700. As we see from the table, residents in Quebec saw the biggest increase in household income since 2020, followed by residents in Manitoba, while the median income decreased in Nova Scotia. The median income is the highest in Quebec and lowest in Nova Scotia. Understanding these components is essential for accurately calculating your annual gross income. Figures compiled by the ONS using census data show this to be the case.

Unfortunately for many job seekers, the way these phrases are used can be ambiguous. Most employers will quote the gross yearly income for any job they are listing because, as the higher of the two figures, it makes a job offer more appealing. This is different from your gross monthly or yearly income, which is a term that is often used interchangeably with your salary. In this guide, the term “annual income” will be used as shorthand for net annual income.

How much are Social Security and Medicare taxes?

The two statistics spring from different traditions of measurement—personal income from national economic accounts and money income from household surveys. BEA’s statistics relate personal income to measures of production, including GDP, and is considered an indicator of consumer spending. The Census Bureau’s statistics provide detail on income distribution and demographics and are used to produce the nation’s official poverty statistics. If your hourly wage is $15, you would need to determine the average number of hours you work per week and then multiply that by 52 weeks per year. You will also have to account for tax withholdings and any other deductions you might have. If you live in a state or city with income taxes, those taxes will also affect your take-home pay.