As the cost of living in the US has been constantly rising over the years, the average salary or median household income of an individual living there has also increased significantly. The average income levels in this country depend upon several factors like industry, profession, experience, location, gender, education, etc.
So, what is a good salary for a single person in the US? Which professions or states offer high salaries to US residents? These are a few crucial questions that can only be answered through the latest average income statistics in the US. Before moving to the States, I did in-depth research and this article covers over X interesting American savings statistics for you.
What is the Minimum Wage in the US in 2022?
Before moving to the average salary or annual income of people living in the US, it is crucial to know the latest minimum wage. In 2022, the mandated minimum wage by the Federal in the US is $7.25 per hour (constant since 2009). However, this minimum wage differs statewide. Some states pay more than the federally mandated minimum wage, while others pay below this rate. As the minimum wage of a state increases, the minimum salary over-exempts automatically increases.
The state with the maximum minimum wage in the US is the District of Columbia which pays $15.2 per hour, followed by:
- California – $15 per hour
- Washington – $14.49 per hour
- Massachusetts – $14.25 per hour
- New York – $13.2 per hour
- Connecticut – $13 per hour
- New Jersey – $13 per hour
However, Georgia and Wyoming are two states in the US that have the lowest minimum wages (below $7.25 per hour) and pay $5.15 per hour.
Average Salary Per Year in the US in 2022
According to the latest Bureau of Labor Statistics (BLS) data, the average annual salary in the US for a full-time wage or salary worker is $53,490/year. It means an average American person makes $1,028 per week (for a 40-hour work week).
Average Household Income in the US in 2022
The average household income usually measures the average income of the US (it doesn’t represent the individual earnings). It varies depending on the state and other variables like gender, number of people earning in a family, etc
In 2022, the average personal income in the US is $63,214, with the median income being around $44,225 across the country. The average real wages in the US in 2022 are around $67,521, and the average household income is $87,864.
[Source: World Population Review]
Average Annual Net Income in the US by Profession or Job Type
Depending upon the job type, state and experience level, the average annual net income of a person in the US varies from the average national income. There are some occupations like engineering or medicine, in which an advanced degree holder can earn three to six times higher annual net income than the average national income.
In contrast, there are other professions where the average annual income is lower than the national average income, like teaching or skill-traded professions (the average annual salary is around $53,924).
Here is the list of some high-paying professions or job types in the US with an expected annual income in 2022:
- Physician – $195,600
- Human resources – Chief HR officer – $163,931-$426,019, VP – $126,939-$303,591
- Software Architect – $110,140
- Marketing: Director of Digital Marketing – $98,850-$182,347, Art Director – $63,594-$117,904
- Real Estate Manager – $90,000-$150,000
- Mechanical Engineer – $95,300
- High-School Teacher – $61,820
- Carpenter – $48,260
- Retail Sales Associate – $29,180[Source: Indeed, TheNationalNews]
Average Salary by Education Level in the US
According to the BLS Q1, 2022 data on average weekly earnings of Wage and Salary Workers in the US, the average salary by education level is as follows:
- Full-time workers of age 25 and above without a high-school diploma – Median weekly earning is $ $670, average annual earning is $34,840
- High School Graduates – Median weekly earning is $827 and average annual earning is $43,004
- People holding at least a bachelor’s degree – Median weekly earning is $1,525 while average annual earning is $79,300
- College Graduates with advanced qualifications (Master’s, professional, and doctoral degrees) – For the 10% of highest-earning male workers, the Median weekly earning is $4,820, average annual earning is $2,50,640. For females, the median weekly earnings is $3,099 while the average annual earnings is $1,61,148
Average Salary by State in the US
The average salary or income in the US varies significantly based on the state you work in. Statewide, it depends upon several factors, like the cost of living, higher education attainment, job market, etc. States with higher education attainment generate high-income jobs.
US States with High Average Incomes
The District of Columbia and Massachusetts are the two US states that have the highest income average rate with $88,702 and $81,123 incomes, respectively.
Here is the list of other states in the US with high average incomes:
- Connecticut – $80,530
- New Jersey – $76,727
- New York – $76,450
- California – $72,430
- Washington – $69,204
- Maryland – $60,067
- Alaska – $66,830
- New Hampshire – $66,565
As these states have a higher average income, the cost of living in these states is also high. In fact, New York, DC and California are the most expensive states in the US to live in.
States in the US with Low Average Incomes
States with low average incomes have low education attainment and cost of living. As the cost of living is low in these states, the livable wages are low too.
Ten states in the US with low average incomes are as follows:
- Mississippi – $41,776
- West Virginia – $44,947
- Kentucky – $45,966
- New Mexico – $46,325
- Alabama – $46,957
- Arkansas – $47,274
- South Carolina – $47,458
- Idaho – $48,591
- Oklahoma – $49,078
- Arizona – $49,823
[Source: World Population Review]
Which State has the Highest Median Household Income in the US in 2022?
In terms of median household income, the highest-paid households in the US are found in the Northeast and West Coast Regions. As per the latest data from the BLS, the state with the largest average household income in the US in 2022 is Maryland.
Maryland – The median household income is $94,384, with the nation’s lowest poverty rate of 8.1%. Furthermore, the education attainment level is also quite high. Around 91% of households have a school diploma or higher degree.
The state with the second-largest median household income in the US is the District of Columbia at $88,311, followed by New Hampshire, Massachusetts and New Jersey with an average household income of $88,235, $86,725 and $85,239, respectively.
[Source: World Population Review]
Which State has the Lowest Median Household Income in The US in 2022?
When it comes to the least median household income, Mississippi stands out with $44,966. Also, the poverty rate here is the highest, with a low level of educational accomplishment. Around 18.8% of Mississippi households live at or below the poverty level, and less than one-fourth of households have a bachelor’s degree.
The state with the second-least median household income in the US is Arkansas at $50,540 with a 14.4% poverty rate (US’s fourth highest). The list is followed by New Mexico, Louisiana and West Virginia, with an annual median household income of $50,822, $50,935 and $51,615, respectively.
[Source: World Population Review]
Median Weekly Wages Statistics by Demographics – Age, Gender, etc.
1. In Q1, 2022, the median weekly earnings of US’s full-time wage and salary workers were $1,037, 4.9% up from the previous year.
As per the latest report of BLS, the median weekly earnings of around 117.5 million full-time wage and salary workers in the first quarter of 2022 were $1,037. In terms of gender, the men earned $1,128 while women earned $939 on average.
2. In the US, the women’s to men’s median weekly earnings ratio in Q1, 2022, varied significantly by race and ethnicity.
According to the same report, the women’s to men’s ratio of median weekly earnings in the US in Q1, 2022, was as follows by race and ethnicity:
- White Americans – 83.1% of women have equal median weekly earnings as their male counterparts.
- Hispanics – 84.5% of women, have equal median weekly earnings as their male counterparts.
- Asian Americans – 85.2% of women have equal median weekly earnings as their male counterparts.
- Black Americans – 93.2% of women have equal median weekly earnings as their male counterparts.
3. For Q1, 2022, the median weekly earnings were highest for men and women aged 35 years or above.
The median weekly earnings in the US for Q1, 2022 were highest for people aged 35 years or above, and here is the data:
- 35-44 years – Median weekly earnings for men were $1257, for women – $1037
- 45- 54 years – Median weekly earnings for men were $1274, for women – $1063
- 55- 64 years – Median weekly earnings for men were $1246, for women – $997
The median weekly earnings were lowest for the young age group of 16-24 years: For men – $694 and For Women – $628
However, the men’s and women’s median weekly earnings were closer in the younger age group than in the older age groups.
4. People in Management, Professional and related occupations recorded higher median weekly earnings in the US in Q1, 2022 than those employed in service occupations.
As per the report, the median weekly earnings in Q1, 2022 for the men employed in management, professional and other related professions was around $1657 and $1268 for women. On the other hand, people employed in service occupations had median weekly earnings of at least $742 for men and $613 for women.
Median Salary in the US by Cities
The median salary in the US is $92,800 per year. As it is a middle salary value, in some states, people earn more than $92,800 per year, while in others, they earn lower than this amount. The annual salary in any state of the US depends upon your educational attainment, experience, job type, cost of living and several other factors.
The median salary also differs significantly based on gender in the US – men earn around 6% more than women across all fields. On average, the median salary for men in the US is $97,500, while for women, it is $92,100.
The average or median salary per year in the popular cities of the US is as follows:
- Austin – $111,000
- Boston – $103,000
- Chicago – $110,000
- Dallas – $113,000
- Houston – $118,000
- Los Angeles – $115,000
- Las Vegas – $96,600
- New York – $121,000
- San Francisco – $104,000
- Seattle – $100,000
- Vancouver – $79,600
- Washington DC – $104,000
What Percentage of Americans Make Over $100k?
According to the latest data, around 34.3% of American households are earning over $100k in 2022 (with 0.6% annual change), compared to 33.8% of households in 2021. This percentage has increased significantly over the years and recorded a peak value of 36.5% of households in 2019.
But after the Covid-19 pandemic, the average salary in the US decreased significantly across all states. As a result, only 33.6% of households earned more than $100k in 2020.
The top-five industries affected (positive & negative growth) by the households earning more than $100k in 2022 are:
- Information Industry – Recorded $1968.1 bn revenue in 2022 with +2.3% growth
- Art Dealers – Recorded $9.5 bn revenue in 2022 with +2.8% growth
- Jewelry Stores – Recorded $33.6 bn revenue in 2022 with -1.1% growth
- Furniture Repair – Recorded $1.5 bn revenue in 2022 with +0.2% growth
- Golf Courses and Country Clubs – Recorded $26.1 bn revenue in 2022 with -0.7% growth[Source: Ibis World]
Is $70k A Good Salary In The US For An Individual?
Yes, $70k is a good salary for an individual living in the US. In fact, it is above the average and median income salaries in many states of the US. To understand it, first understand “70000 a year is how much an hour?”
The average working hours in the US per week is 40 (five working days), equal to 2080 hours per year. Let’s see how much it costs you per hour:
$70,000 salary / 2080 hours = $33.65 per hour
So on average, you get paid $33.65 per hour for a $70k salary per year, which is a lot more than the minimum wage or the average wages in the highest-income states of the US.
If you further calculate it on a per-month basis, the monthly amount would be $5,833.33, and weekly, it would be $1,346 per week.
The taxes you have to pay on a $70k annual salary in the US are:
- Federal Taxes of 12%: $8,400
- State Taxes of 4%: $2,800
- Social Security and Medicare of 7.65%: $5,355
So, a $70k Salary Per Year After Taxes is $53,445. These taxes can vary depending upon the state you live in. For example, New York or California are high-tax states, while Texas or Florida are no-tax states.
Depending upon your state tax, the annual gross $70k salary can range from $47,845 to $56,245 per year, sufficient to live your life comfortably in the US.
[Source: Money Bliss]
Through these average salary and income statistics in the US 2022, we wanted to give you a clear picture of the average earning of an American weekly, hourly, monthly or annually. As we mentioned already, the average income for an individual in any state or country depends upon several factors like age, education, experience, occupation, gender, race, cost of living, taxes, etc.
So, if you plan to settle in the US for work, don’t forget to do your research based on all these factors to get the actual idea of how much you will make and save over there. For more such interesting statistics, keep checking our related blogs.