The average American annual income is a critical benchmark for anyone looking to understand the economic landscape, and at income-partners.net, we help you navigate this complex world to identify opportunities for income enhancement and strategic partnerships. By exploring the nuances of average salaries across states, demographics, and industries, you can make informed decisions about your career, investments, and business ventures, paving the way for financial success and lucrative collaborations. Ready to explore how you can leverage partnerships to boost your earnings?
1. Understanding the Average Annual Income in the US
The average annual income in the US provides a broad overview of the economic well-being of American workers. According to the Bureau of Labor Statistics, the average yearly salary in the US is $65,470, offering a starting point for understanding income trends. The National Average Wage Index, used by the Social Security Administration, shows a similar figure of $66,621 for 2023, reflecting a 4.43% increase from 2022. This growth is a key indicator for businesses when considering salary adjustments to remain competitive.
This image illustrates the variation in average hourly earnings across different states in the US.
2. How State-Level Salaries Impact Income
Salaries vary significantly from state to state, influenced by local economic conditions, industries, and cost of living. The District of Columbia leads with the highest average hourly wage at $51.66, while Mississippi has the lowest at $27.12. This disparity highlights the importance of considering location when evaluating income opportunities.
2.1. Average Hourly Salary by State
Here’s a glimpse into the states with the highest and lowest average hourly wages:
States with the Highest Average Hourly Wages:
| State/District | Average Hourly Wage |
|---|---|
| District of Columbia | $51.66 |
| Massachusetts | $41.92 |
| Washington | $41.42 |
| California | $40.09 |
| Colorado | $38.64 |
States with the Lowest Average Hourly Wages:
| State | Average Hourly Wage |
|---|---|
| Mississippi | $27.12 |
| New Mexico | $28.49 |
| Arkansas | $29.03 |
| West Virginia | $29.15 |
| Kentucky | $29.15 |
2.2. Cost of Living Adjusted Hourly Wages
Adjusting for cost of living provides a more accurate view of purchasing power. The District of Columbia remains at the top with an adjusted wage of $45.02 per hour, while Mississippi’s adjusted wage rises to $30.56. This adjustment reflects the real value of earnings in different locations.
States with the Highest Average Hourly Wages Adjusted for Cost of Living:
| State/District | Average Hourly Wage (Adjusted) |
|---|---|
| District of Columbia | $45.02 |
| Minnesota | $38.87 |
| North Dakota | $38.16 |
| Massachusetts | $37.98 |
| Colorado | $37.75 |
States with the Lowest Average Hourly Wages Adjusted for Cost of Living:
| State | Average Hourly Wage (Adjusted) |
|---|---|
| Mississippi | $30.56 |
| New Mexico | $31.06 |
| Maine | $31.80 |
| Louisiana | $32.00 |
| Nevada | $32.10 |
2.3. Weekly Earnings Across the States
Weekly earnings are also impacted by the number of hours worked. The District of Columbia has the highest average weekly hours (36.6), resulting in an average weekly wage of $1,890.76, while Mississippi’s lower hours contribute to a weekly wage of $941.06.
Average Weekly Salary by State:
| State | Average Hourly Earnings 2024 | Average Weekly Hours 2024 | Hourly Wage Adjusted for Cost of Living |
|---|---|---|---|
| Alabama | $30.32 | 35.0 | $34.03 |
| Alaska | $37.17 | 34.7 | $36.43 |
| Arizona | $33.89 | 35.5 | $33.92 |
| Arkansas | $29.03 | 35.3 | $32.92 |
| California | $40.09 | 34.2 | $35.09 |
| Colorado | $38.64 | 33.8 | $37.75 |
| Connecticut | $38.21 | 34.0 | $35.76 |
| Delaware | $31.91 | 32.5 | $32.56 |
| District of Columbia | $51.66 | 36.6 | $45.02 |
| Florida | $32.95 | 34.3 | $32.24 |
| Georgia | $32.81 | 34.6 | $34.18 |
| Hawaii | $37.00 | 33.5 | $32.99 |
| Idaho | $31.90 | 34.8 | $34.51 |
| Illinois | $34.22 | 33.7 | $33.79 |
| Indiana | $31.00 | 34.1 | $33.54 |
| Iowa | $29.84 | 34.3 | $33.29 |
| Kansas | $31.12 | 33.9 | $34.24 |
| Kentucky | $29.15 | 35.2 | $32.25 |
| Louisiana | $29.24 | 35.9 | $32.00 |
| Maine | $31.97 | 33.7 | $31.70 |
| Maryland | $35.52 | 33.6 | $33.76 |
| Massachusetts | $41.92 | 33.8 | $37.98 |
| Michigan | $32.65 | 34.3 | $34.80 |
| Minnesota | $38.00 | 33.3 | $38.87 |
| Mississippi | $27.12 | 34.7 | $30.56 |
| Missouri | $32.10 | 34.0 | $34.95 |
| Montana | $32.14 | 33.1 | $35.27 |
| Nebraska | $31.61 | 33.8 | $34.83 |
| Nevada | $30.98 | 34.6 | $32.10 |
| New Hampshire | $35.53 | 33.5 | $32.81 |
| New Jersey | $37.14 | 33.8 | $33.89 |
| New Mexico | $28.49 | 33.8 | $31.06 |
| New York | $38.15 | 33.1 | $35.25 |
| North Carolina | $33.06 | 34.4 | $34.98 |
| North Dakota | $34.27 | 35.8 | $38.16 |
| Ohio | $32.47 | 34.5 | $35.25 |
| Oklahoma | $30.56 | 35.5 | $33.99 |
| Oregon | $36.34 | 35.1 | $33.95 |
| Pennsylvania | $32.07 | 34.3 | $33.28 |
| Rhode Island | $36.20 | 33.5 | $34.50 |
| South Carolina | $31.19 | 33.9 | $33.20 |
| South Dakota | $31.16 | 33.9 | $34.90 |
| Tennessee | $30.34 | 34.9 | $32.83 |
| Texas | $33.25 | 36.2 | $34.08 |
| Utah | $34.42 | 33.9 | $36.32 |
| Vermont | $34.11 | 34.0 | $33.74 |
| Virginia | $34.22 | 34.6 | $33.49 |
| Washington | $41.42 | 34.8 | $37.34 |
| West Virginia | $29.15 | 35.1 | $32.29 |
| Wisconsin | $33.77 | 33.2 | $36.37 |
| Wyoming | $31.60 | 35.6 | $34.16 |
These location-based insights are crucial for businesses planning expansions or managing remote teams, ensuring fair compensation based on geographic location and cost of living.
3. Sector-Specific Salaries: A Detailed Overview
The sector in which one works significantly influences earning potential. Management, business, and financial operations lead with median weekly earnings of $1,743, while farming, fishing, and forestry lag behind at $727. This data is vital for career planning and business strategy.
3.1. Weekly Salary by Occupation
Here’s a breakdown of median weekly earnings across different sectors:
| Occupation | Median Weekly Earnings |
|---|---|
| Management, business, and financial operations | $1,743 |
| Professional and related occupations | $1,503 |
| Service occupations | $772 |
| Sales and related occupations | $1,017 |
| Office and administrative support occupations | $925 |
| Farming, fishing, and forestry occupations | $727 |
| Construction and extraction occupations | $1,020 |
| Installation, maintenance, and repair occupations | $1,207 |
| Production occupations | $935 |
| Transportation and material moving occupations | $867 |
This image compares the median weekly earnings across various occupational categories in the United States.
3.2. The Highest-Paid Professions
Physicians lead as the highest-paid profession with a median annual wage of $236,600, followed by other medical and executive roles. The substantial difference between the top and tenth highest-paid professions highlights the value of specialized skills and leadership roles.
Top 10 Highest Paid Professions:
| Profession | Median Hourly Wage | Median Annual Wage |
|---|---|---|
| Physicians | $113.46 | $236,600 |
| Nurse Anesthetists | $102.24 | $212,650 |
| Chief Executives | $102.24 | $212,650 |
| Aircraft Pilots and Flight Engineers | N/A | $171,210 |
| Dentists | $82.17 | $170,910 |
| Computer and Information Systems Managers | $81.50 | $169,510 |
| Architectural and Engineering Managers | $79.50 | $165,730 |
| Financial Managers | $75.05 | $156,100 |
| Lawyers | $68.48 | $142,440 |
| Marketing and Sales Managers | $68.17 | $141,780 |
3.3. Lowest-Paid Professions
Conversely, hosts, hostesses, and baristas earn the lowest median annual wage at $29,220. Service roles such as fast food workers and cashiers also fall into this category, underscoring the economic challenges faced by those in entry-level and service-oriented positions.
Top 10 Lowest Paid Professions:
| Profession | Median Hourly Wage | Median Annual Wage |
|---|---|---|
| Hosts, Hostesses, Baristas | $14.05 | $29,220 |
| Fast Food Workers | $14.20 | $29,540 |
| Cashiers | $14.30 | $29,740 |
| Ushers and Ticket Takers | $14.32 | $29,780 |
| Childcare Workers | $14.60 | $30,370 |
| Hotel Desk Clerks | $14.80 | $30,790 |
| Dishwashers | $15.00 | $31,200 |
| Animal Caretakers | $15.00 | $31,200 |
| Bartenders | $15.15 | $31,510 |
| Waiters and Waitresses | $15.36 | $31,940 |
3.4. Most Common Professions in the US
Laborers and material movers constitute the most common profession in the US, with 6,935,980 workers, followed by home health and personal care aides. These roles, while numerous, often do not command the highest salaries, indicating a significant portion of the workforce may face financial constraints.
Most Common Professions:
| Profession | Number of Workers | Median Hourly Wage | Median Annual Wage |
|---|---|---|---|
| Laborers and Material Movers | 6,935,980 | $17.65 | $36,720 |
| Home Health/Personal Care Aides | 3,689,350 | $16.12 | $33,530 |
| Retail Salespersons | 3,684,740 | $16.19 | $33,680 |
| Fast Food/Counter Workers | 3,676,580 | $14.20 | $29,540 |
| Drivers/Truck Drivers | 3,511,470 | $23.14 | $48,120 |
| General/Operations Managers | 3,507,810 | $48.69 | $101,280 |
| Cashiers | 3,319,210 | $14.30 | $29,740 |
| Registered Nurses | 3,175,390 | $41.38 | $86,070 |
| Secretaries/Admin. Assistants | 3,171,290 | $22.12 | $46,010 |
| Building Cleaning Workers | N/A | $16.63 | $34,600 |
Understanding these salary variations by sector allows businesses to better allocate resources, offer competitive wages, and strategically plan for growth.
4. The Influence of Age on Earning Potential
Age is a significant determinant of earning potential. Typically, earnings peak between the ages of 45 and 54, attributed to accumulated experience and career progression. Younger demographics, such as those aged 16 to 24, generally have lower earning potential due to their limited experience and entry-level positions.
4.1. Earning Potential by Age Group
The prime earning age bracket is between 45 and 54, with an average annual salary of $69,628 and a median weekly wage of $1,339. This reflects the benefits of experience and career advancement. Conversely, the 16 to 19 age group earns a median weekly wage of only $746, highlighting the disparity between early-career and peak-career earnings.
Median Earnings by Age:
| Age | Median Weekly Earnings | Median Annual Earnings |
|---|---|---|
| 16-19 | $746 | $38,792 |
| 20-24 | $778 | $40,456 |
| 25-34 | $1,107 | $57,564 |
| 35-44 | $1,301 | $67,652 |
| 45-54 | $1,339 | $69,628 |
| 55-64 | $1,268 | $65,936 |
| 65 and over | $1,121 | $58,292 |
This chart showcases how median weekly earnings vary across different age groups, illustrating the peak earning years.
5. Gender Pay Gap: Understanding the Discrepancies
The gender pay gap remains a persistent issue in the US. In 2023, men earned a median annual salary of $66,790, while women earned $55,240. Although progress has been made over the decades, with the female-to-male earnings ratio increasing from 60.7% in 1960 to 83% in 2023, disparities still exist and vary by state and occupation.
5.1. Gender Pay Gap Trends
Men’s salaries have recently increased at twice the rate of women’s, with a 3% increase for men compared to a 1.5% increase for women from 2022 to 2023. This highlights the ongoing challenges in achieving pay equity and the need for businesses to address potential gaps in their compensation structures.
5.2. Gender Pay Gap by State
The gender pay gap varies significantly by state. The District of Columbia has the lowest pay gap at 13.6%, likely due to government salaries helping to close the gap, while Utah has the highest at 42.3%. These state-level differences underscore the influence of local economies and policies on pay equity.
Female vs Male Median Earnings by State:
| State | Female Median Earnings – Annual | Male Median Earnings – Annual | Percent Difference |
|---|---|---|---|
| Alabama | $29,874 | $45,272 | 34.0 |
| Alaska | $40,165 | $53,311 | 24.6 |
| Arizona | $35,599 | $45,963 | 22.5 |
| Arkansas | $30,687 | $41,445 | 25.9 |
| California | $37,927 | $51,028 | 25.6 |
| Colorado | $39,279 | $54,888 | 28.4 |
| Connecticut | $41,426 | $57,388 | 27.8 |
| Delaware | $37,382 | $49,396 | 24.3 |
| District of Columbia | $70,095 | $81,197 | 13.6 |
| Florida | $33,256 | $42,944 | 22.5 |
| Georgia | $34,421 | $46,369 | 25.7 |
| Hawaii | $39,182 | $50,585 | 22.5 |
| Idaho | $27,822 | $43,706 | 36.3 |
| Illinois | $36,899 | $52,394 | 29.5 |
| Indiana | $32,688 | $47,316 | 30.9 |
| Iowa | $33,724 | $48,115 | 29.9 |
| Kansas | $32,564 | $46,797 | 30.4 |
| Kentucky | $31,440 | $43,912 | 28.4 |
| Louisiana | $29,657 | $47,051 | 36.9 |
| Maine | $34,624 | $46,196 | 25.0 |
| Maryland | $46,332 | $59,324 | 21.9 |
| Massachusetts | $44,721 | $61,060 | 26.7 |
| Michigan | $32,208 | $47,107 | 31.62 |
| Minnesota | $39,871 | $54,060 | 26.2 |
| Mississippi | $28,841 | $41,512 | 30.5 |
| Missouri | $33,619 | $46,102 | 27.0 |
| Montana | $30,643 | $43,187 | 29.0 |
| Nebraska | $33,786 | $47,603 | 29.0 |
| Nevada | $35,155 | $44,706 | 21.3 |
| New Hampshire | $39,729 | $56,601 | 29.8 |
| New Jersey | $42,399 | $60,103 | 29.4 |
| New Mexico | $29,731 | $40,012 | 25.6 |
| New York | $41,423 | $53,541 | 22.6 |
| North Carolina | $33,834 | $44,832 | 24.5 |
| North Dakota | $35,363 | $50,877 | 30.5 |
| Ohio | $33,651 | $47,317 | 28.9 |
| Oklahoma | $30,499 | $44,449 | 31.3 |
| Oregon | $34,964 | $47,618 | 26.5 |
| Pennsylvania | $35,252 | $50,951 | 30.8 |
| Rhode Island | $38,912 | $52,663 | 26.1 |
| South Carolina | $32,164 | $44,652 | 27.9 |
| South Dakota | $33,516 | $45,835 | 26.8 |
| Tennessee | $32,935 | $44,951 | 26.7 |
| Texas | $33,429 | $47,330 | 29.3 |
| Utah | $29,250 | $50,742 | 42.3 |
| Vermont | $36,824 | $45,098 | 18.3 |
| Virginia | $38,966 | $55,259 | 29.4 |
| Washington | $40,196 | $58,197 | 30.9 |
| West Virginia | $29,470 | $43,262 | 31.8 |
| Wisconsin | $35,339 | $50,064 | 29.4 |
| Wyoming | $30,693 | $51,640 | 40.5 |
This map illustrates the gender pay gap across different states in the US, highlighting the disparities in earnings between men and women.
5.3. Gender Pay Gap by Occupation
Wage disparity is more pronounced in certain occupations. While the gap is relatively low in community and social service occupations, women earn just 53.5% of men’s median earnings in the legal field. This highlights the influence of occupational choices and industry practices on pay equity.
Gender Pay Gap by Occupational Category:
| Occupational Category | Men’s Median Earnings | Women’s Median Earnings | Women’s % of Men’s |
|---|---|---|---|
| Architecture and Engineering Occupations | $96,938 | $85,163 | 87.9% |
| Arts, Design, Entertainment, Sports, Media | $67,623 | $60,840 | 90.0% |
| Building/Grounds Cleaning & Maintenance | $37,239 | $29,141 | 78.3% |
| Business and Financial Operations | $90,069 | $71,856 | 79.8% |
| Community and Social Service Occupations | $54,946 | $53,745 | 97.8% |
| Computer and Mathematical Occupations | $103,298 | $87,509 | 84.7% |
| Construction and Extraction Occupations | $50,558 | $40,164 | 79.4% |
| Educational, Instruction, Library | $66,043 | $53,519 | 81.0% |
| Farming, Fishing, Forestry | $37,396 | $29,304 | 78.4% |
| Food Preparation and Serving Related | $32,097 | $27,393 | 85.3% |
| Healthcare Practitioners and Technical | $95,762 | $72,119 | 75.3% |
| Healthcare Support Occupations | $39,160 | $34,691 | 88.6% |
| Installation, Maintenance, Repair | $54,928 | $46,973 | 85.5% |
| Legal Occupations | $150,658 | $80,673 | 53.5% |
| Life, Physical, and Social Science | $82,726 | $73,766 | 89.2% |
| Management Occupations | $99,144 | $76,066 | 76.7% |
| Material Moving Occupations | $37,573 | $32,174 | 85.6% |
| Office/Administrative Support | $50,124 | $42,303 | 84.4% |
| Personal Care and Service Occupations | $40,014 | $31,713 | 79.3% |
| Production Occupations | $49,667 | $36,546 | 73.6% |
| Protective Service Occupations | $64,749 | $50,411 | 77.9% |
| Sales and Related Occupations | $63,240 | $42,808 | 67.7% |
| Transportation Occupations | $53,242 | $38,252 | 71.8% |
For businesses, understanding these disparities is crucial for implementing fair pay practices, documenting payroll data, and promoting equitable compensation structures.
6. Trends in Average Annual Salaries Over the Last Decade
From 2015 to 2024, median yearly earnings in the US have increased from $42,692 to $60,580, representing a 41.9% increase. The most significant jump occurred between 2021 and 2022, with a 7.33% increase. These trends are essential for financial planning and strategic growth.
6.1. Annual Salary Trends
The consistent increase in average annual salaries over the past decade reflects economic growth and inflationary pressures. Analyzing these trends helps businesses forecast future salary adjustments and manage payroll expenses effectively.
US Median Earnings 2015-2024:
| Year | Median Weekly Earnings | Median Annual Earnings | Median Weekly Earnings (1982-1984 Dollars) | Median Annual Earnings (1982-1984 Dollars) |
|---|---|---|---|---|
| 2015 | $821 | $42,692 | $345 | $17,940 |
| 2016 | $845 | $43,940 | $349 | $18,148 |
| 2017 | $854 | $44,408 | $345 | $17,940 |
| 2018 | $897 | $46,644 | $355 | $18,460 |
| 2019 | $934 | $48,568 | $362 | $18,824 |
| 2020 | $983 | $51,116 | $376 | $19,552 |
| 2021 | $1,009 | $52,468 | $362 | $18,824 |
| 2022 | $1,083 | $56,316 | $363 | $18,876 |
| 2023 | $1,142 | $59,384 | $371 | $19,292 |
| 2024 | $1,165 | N/A | $371 | $19,292 |
This line graph illustrates the trend of median weekly earnings in the US from 2015 to 2024, highlighting the gradual increase over the decade.
7. Why Salary Data Matters to Small Businesses
For small business owners, understanding salary data is crucial for financial planning, benchmarking, budget allocation, analyzing market trends, and facilitating growth.
7.1. Financial Planning
Salary data enables informed decisions about employee compensation, facilitating better payroll management and financial stability. By knowing the average salaries for different roles, businesses can manage their payroll expenses more effectively.
7.2. Benchmarking
Benchmarking
