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What's the Average Income in the U.S.?

Published October 10, 2024

4 min read

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Key points about: average income in the United States

The United States’ 2021 median household income, including salary, investment earnings, and more, was $70,784.
The average American salary in 2022 was $61,900.
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 American. Understanding the average income in the U.S. could help you make financial decisions for 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 United States Census Bureau mainly reports on median income. Its income report from September 2022 shows that the median household income in 2021 was $70,784. However, median income varies across demographics like gender, race, age group, and educational attainment.

The United States Bureau of Labor Statistics estimates wages across 830 occupations each year. In April 2023, the BLS released the May 2022 National Occupational Employment and Wage Estimates report stating that $61,900 was the average annual wage. As with overall income, wages vary significantly across gender, race, nationality, and more demographic figures. Earnings also depend largely on geographic location and occupation.

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States with the highest average income

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

Massachusetts: $76,600
New York: $74,870
California: $73,220
Washington: $72,350
New Jersey: $70,890

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 $14.13 in New Jersey to $15.74 in Washington.

States with the lowest average income

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

Mississippi: $45,180
Arkansas: $48,570
West Virginia: $49,170
South Dakota: $49,890
Alabama: $50,620

These states are spread throughout different regions in the country, from the southern coast to the Midwest. Mississippi, Arkansas, Alabama, and West Virginia each have higher poverty rates than the national average of 11.2%, the Census Bureau explains. South Dakota is an exception, with a poverty rate of 10.2%.

Average income by occupation

Understanding the average pay within your field could help you negotiate your salary and make career decisions. While the full BLS analysis spans hundreds of professions, we’ve included some common fields and their typical wages below.

Office and administrative support workers earn an average of $45,550. This broad category includes roles like financial clerks, postal service workers, proofreaders, telephone operators, and administrative assistants.

People working in sales earn an average of $50,370. The sales category encompasses a wide range of fields, from real estate to retail to life insurance. The specific product a person sells could have a significant impact on their income. Individuals in computer manufacturing, information services, and security products, for example, all have average salaries over $100,000.

Many management roles pay significantly more than the national average. General and operations managers across various industries earn an average of $122,860 annually. Salaries within this category may vary a lot, however. For example, restaurant managers have a mean salary of $65,111, and bank managers have a mean salary of $262,700.

Computer and mathematical occupations are another relatively high-paying group, with an average wage of $108,130. Web developers, information security analysts, data scientists, actuaries, and computer support specialists fall under this category, among many other roles.

A wide range of factors could influence wages, including your background and your unique responsibilities in the workplace. 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.

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Your income, 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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