Income and Wealth in the United States: An Overview of Recent Data

Younger adults (16 to 19 years) with full-time jobs have the lowest median weekly earnings – $6234. In addition to withholding federal and state taxes, part of your gross income might also have to contribute to deductions. These are known as “pre-tax deductions” and include contributions to retirement accounts and some health care costs. For example, when you look at your paycheck you might see an amount deducted for your company’s health insurance plan and for your 401k plan.

Annual Gross Income:

When you know your annual income, you’re in a better position to negotiate your salary in new job offers or during performance reviews. Annual income provides a benchmark to assess if you’re being compensated fairly based on industry standards and your experience. Your annual income is a key factor in setting and achieving financial goals. While your gross annual income is a starting point for financial decisions, your annual take-home pay is the amount available to spend on things like gas, groceries, and your mortgage payment. For each payroll, federal income tax is calculated based on the answers provided on the W-4 and year to date income, which is then referenced to the tax tables in IRS Publication 15-T.

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.

Average weekly salary by age

For example, a person in British Columbia earning $60,000 per year will not pay 7.7% of the total income. Where you live is another significant influencer on how much you earn. Because of differences in the job market and cost of living, median pay varies state by state. Research by the Institute of Fiscal Studies (IFS) in 2020 found that over their working lives graduates are financially better off than those who do not go to university. On average, men are £130,000 better off over their working lifetime, after tax and student loan repayments are taken into account. We’ve used government research from the Office for National Statistics (ONS), alongside data from other sources, to answer this question and more.

• The details can vary depending on whether you are a salaried employee, hourly employee, or self-employed.
• The average annual salary in the US has increased incrementally over the past decade.
• An average can be heavily skewed by a few very high or very low values, so the median is usually a better overall guide.
• According to data from Jobillico, average salaries have gone up across the country.

Salaries in Canada

Views expressed are as of the date indicated, based on the information available at that time, and may change based on market or other conditions. Unless otherwise noted, the opinions provided are those of the speaker or author and not necessarily those of Fidelity Investments or its affiliates. If the benefits of one job offer are significantly different from another, it might be worth your time to assign a numeric value. Andrew holds a Bachelor’s degree in Finance and a Bachelor’s degree in Political Science from the University of Colorado and specializes in finance, real estate, and life insurance.

Average US salary by sex

“Recommended” articles and additional information may be provided by PNC Investments affiliates, including PNC Bank, PNC Wealth Management and PNC Institutional Asset Management. Select your state from the list below to see its salary employee calculator. For the first time ever, all three major credit ratings agencies have downgraded U.S. credit below their top rating.

That’s 77.8% of what men earned on average in the same timeframe ($84,600)1. The gap between male and female earnings starts early and widens with time. Women between 20 and 24 earn a median of $39,468, while men in the same group earn $42,276. That’s the narrowest divide, with a difference of just under $3,000. Use the guidelines provided to determine your annual earnings, then put this knowledge into action.

• Individual earnings tend to climb steadily through early adulthood and peak between ages 45 and 54.
• Fidelity cannot guarantee that the information herein is accurate, complete, or timely.
• That’s because your employer withholds taxes from each paycheck, lowering your overall pay.
• On average, Mississippi residents earn 51.7% as much as DC residents make per hour.

Average Salary by State

This chart is median income of 15 year olds or annual income 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.

In the first quarter of 2022, the average salary in Canada was lower than in 2021 at $56,416, a decrease of just under 1%. According to data from Jobillico, average salaries have gone up across the country. Some of these large increases are due to the rise in minimum wage over the intervening period, allowing Canadians to earn more than they had in previous years. New Brunswick saw the biggest increase in salaries, while Nunavut was nearly the same. The median after-tax income has increased year on year in Canada from 2016 until 2020 based on the Canadian census findings. In 2016, the average income was $60,400 compared to $66,800 in 2020.

The number of hours worked per week isn’t necessarily consistent from state to state. Learn all about the 12 valuation ratios that allow investors to quickly estimate a business’s value relative to its … Steve Rogers has been a professional writer and editor for over 30 years, specializing in personal finance, investment, and the impact of political trends on financial markets and personal finances.

Gender pay gap

Pre-tax deductions result in lower take-home, but also means less of your income is subject to tax. Some deductions are “post-tax”, like Roth 401(k), and are deducted after being taxed. It’s used to encourage more open conversations about what companies are paying their workers. Knowing about the average salary in the US could shed light on whether you’re being underpaid. It could also help you make more informed choices as you apply for new jobs or ask for a raise.

When it comes to the top paying roles in the UK unsurprisingly senior executives, directors and managers tend to be paid the most. The median average income across all age groups was £31,100 for males and £25,500 for females. The median annual pay of the top chief executives (FTSE 100 bosses) in 2024 stood at £4.22 million – a 2.5% annual increase on the previous year and the fifth consecutive annual rise. Find out what people earn at different ages across different parts of the country, and in different industry sectors, to see how your pay measures up. To help support our reporting work, and to continue our ability to provide this content for free to our readers, we receive payment from the companies that advertise on the Forbes Advisor site.