By Jacqueline DeMarco ·March 28, 2024 · 6 minute read
We’re here to help! First and foremost, SoFi Learn strives to be a beneficial resource to you as you navigate your financial journey.We develop content that covers a variety of financial topics. Sometimes, that content may include information about products, features, or services that SoFi does not provide.We aim to break down complicated concepts, loop you in on the latest trends, and keep you up-to-date on the stuff you can use to help get your money right.
The average salary in the U.S. is $63,795, according to the latest data from the Social Security Administration. How your salary compares will depend on your industry and skilI set, as you’d expect. What you might not realize is that your salary is also greatly influenced by where you live, since salaries go hand in hand with the cost of living.
Let’s take a closer look at the average salary in the U.S. and how income varies from state to state.
Table of Contents
- What Is the Average US Salary
- Average Salary vs Median Salary
- US Average and Median Salary by State
- Why Do States Have Different Average Salaries
- Which Regions Pay the Most
- Which Regions Pay the Least
- Should You Move to Make More Money?
- The Takeaway
Key Points
• The average salary in the US varies depending on factors like occupation, location, and experience.
• As of 2021, the median household income in the US was around $67,500.
• High-paying occupations include healthcare, technology, finance, and engineering.
• The cost of living and regional differences can impact salary levels across the country.
• It’s important to research salary ranges for specific occupations and locations when considering job opportunities.
What Is the Average US Salary (2024)
The national average salary is $63,795. That is the sum of all incomes divided by the number of workers. Where someone lives, their industry, education level, and current demand for that job all contribute to how much a worker earns per year.
💡 Quick Tip: Online tools make tracking your spending a breeze: You can easily set up budgets, then get instant updates on your progress, spot upcoming bills, analyze your spending habits, and more.
The Bureau of Labor Statistics (BLS) provides data on median pay. As of Q4 2023, the median weekly earnings of full-time workers was $1,145, or $59,384 per year. The median is the midpoint in the data set, with 50% of incomes falling above that figure, and 50% below.
Why are the average and median income figures different? With averages, unusually high or low numbers can skew the results. For instance, billionaires might drive the average higher than what the typical worker actually makes. The median is less affected by outliers.
US Average and Median Salary by State in 2024
The following chart shows both the average and median income (in single income households) in each state, according to data from Forbes and BLS.
| State | Average | Median |
|---|---|---|
| Alabama | $50,620 | $57,564 |
| Alaska | $66,130 | $66,820 |
| Arizona | $58,620 | $65,780 |
| Arkansas | $48,570 | $53,716 |
| California | $73,220 | $84,448 |
| Colorado | $67,870 | $74,152 |
| Connecticut | $69,310 | $78,572 |
| Delaware | $62,260 | $64,896 |
| Florida | $55,980 | $64,168 |
| Georgia | $58,000 | $64,844 |
| Hawaii | $61,420 | $62,296 |
| Idaho | $51,350 | $53,976 |
| Illinois | $63,930 | $70,564 |
| Indiana | $53,500 | $57,304 |
| Iowa | $53,520 | $56,264 |
| Kansas | $52,850 | $51,978 |
| Kentucky | $51,490 | $57,200 |
| Louisiana | $50,940 | $56,836 |
| Maine | $55,960 | $58,396 |
| Maryland | $69,750 | $72,904 |
| Massachusetts | $76,600 | $86,840 |
| Michigan | $58,000 | $63,440 |
| Minnesota | $63,640 | $63,380 |
| Mississippi | $45,180 | $48,048 |
| Missouri | $54,520 | $59,800 |
| Montana | $52,200 | $55,744 |
| Nebraska | $55,070 | $56,784 |
| Nevada | $55,490 | $61,828 |
| New Hampshire | $62,550 | $72,124 |
| New Jersey | $70,890 | $76,128 |
| New Mexico | $54,400 | $57,564 |
| New York | $74,870 | $84,292 |
| North Carolina | $56,220 | $62,296 |
| North Dakota | $55,800 | $61,568 |
| Ohio | $56,530 | $60,320 |
| Oklahoma | $50,940 | $54,704 |
| Oregon | $62,680 | $66,612 |
| Pennsylvania | $58,470 | $66,404 |
| Rhode Island | $64,530 | $63,492 |
| South Carolina | $50,650 | $56,108 |
| South Dakota | $49,890 | $53,820 |
| Tennessee | $52,820 | $62,140 |
| Texas | $57,300 | $68,744 |
| Utah | $57,360 | $61,516 |
| Vermont | $59,190 | $61,100 |
| Virginia | $65,590 | $71,292 |
| Washington | $72,350 | $85,748 |
| West Virginia | $49,170 | $55,900 |
| Wisconsin | $56,120 | $58,552 |
| Wyoming | $54,440 | $56,992 |
Recommended: The 50/30/20 Budget
Why Do States Have Different Average Salaries?
The chart shows that the average salary in some states is quite different from the average salary nationwide. That’s partly because the cost of living, which affects how much a company pays its employees, varies significantly by state. (Also, inflation impacts states to varying degrees.)
In addition, industries with a concentrated presence in certain states — such as banking or automobile manufacturing — can affect the overall quality of job opportunities in that area.
Check your score with SoFi
Track your credit score for free. Sign up and get $10.*
Which Regions Pay the Most?
Salaries tend to be higher in some areas of the country. Cities on the West Coast and in the Northeast have some of the highest average salaries:
• Massachusetts
• New York
• Washington
• California
• New Jersey
• Connecticut
• Maryland
Remember, while these states have higher incomes, they may also have a much higher cost of living and higher housing prices.
Recommended: 25 Highest-Paying Jobs in the US
Which Regions Pay the Least?
The South is home to states that tend to pay the least:
• South Carolina
• Kentucky
• Louisiana
• Alabama
• Arkansas
• West Virginia
• Mississippi
To determine what your personal cost of living is, try tracking your expenses with a free budget app for a few months.
Should You Move to Make More Money?
It’s important to remember that just because a state has a higher average salary, that doesn’t mean it’s more profitable for workers to live there. Higher salaries tend to correlate with a higher cost of living.
Before making a major move, first try living below your means. One reason that people who make more money still have trouble paying their bills is the phenomenon of lifestyle creep. This is when your so-called needs expand to consume your current salary.
One of the most effective ways to counteract lifestyle creep is to downsize your home. Reducing your housing expenses to less than 30% of your gross income can help you pay down debt, increase savings, and become more conscious of how lifestyle choices affect spending.
💡 Quick Tip: Income, expenses, and life circ*mstances can change. Consider reviewing your budget a few times a year and making any adjustments if needed.
The Takeaway
The average annual average salary in the U.S. is $63,795. The median annual salary, which is often less skewed by outlying numbers, is $59,384. It’s worth noting that average and median salaries vary quite a bit by state. States in the Northeast and on the West Coast tend to pay higher salaries, while those in the South often pay less. What’s stopping people from moving to a higher paying state? Often, it’s housing prices, which rise along with the cost of living in “richer” states.
Take control of your finances with SoFi. With our financial insights and credit score monitoring tools, you can view all of your accounts in one convenient dashboard. From there, you can see your various balances, spending breakdowns, and credit score. Plus you can easily set up budgets and discover valuable financial insights — all at no cost.
FAQ
How much do the top 10% of Americans make per year?
The top 10% of Americans earn $173,176 per year. Some top earners live in higher cost of living areas, so it can be more revealing to see how much the top 10% earn in your state.
What percentage of Americans make over $75K?
Only 12.3% of Americans make in the $75,000 to $99,999 range. An additional 16.4% make between $100,000 and $149,000. However, a large portion of Americans (16.2%) earn in the $50,000 to $74,999 range.
Which U.S. state has the highest salary?
Massachusetts is the state with the highest annual income of $76,600. This salary is significantly more than the national average salary of $63,795.
Photo credit: iStock/artpipi
SoFi Relay offers users the ability to connect both SoFi accounts and external accounts using Plaid, Inc.’s service. When you use the service to connect an account, you authorize SoFi to obtain account information from any external accounts as set forth in SoFi’s Terms of Use. Based on your consent SoFi will also automatically provide some financial data received from the credit bureau for your visibility, without the need of you connecting additional accounts. SoFi assumes no responsibility for the timeliness, accuracy, deletion, non-delivery or failure to store any user data, loss of user data, communications, or personalization settings. You shall confirm the accuracy of Plaid data through sources independent of SoFi. The credit score is a VantageScore® based on TransUnion® (the “Processing Agent”) data.
Non affiliation: SoFi isn’t affiliated with any of the companies highlighted in this article.
Third-Party Brand Mentions: No brands, products, or companies mentioned are affiliated with SoFi, nor do they endorse or sponsor this article. Third-party trademarks referenced herein are property of their respective owners.
Financial Tips & Strategies: The tips provided on this website are of a general nature and do not take into account your specific objectives, financial situation, and needs. You should always consider their appropriateness given your own circ*mstances.
SORL0124016
