Average salary in the U.S.: What you should know

An average salary amount is calculated by dividing the total dollar amount of salaries in an industry or group by the number of people receiving a salary. Quick example: If five people in an industry make $500,000 total, the average salary would be $100,000 ($500,000 divided by five people).

Median salary means the middle point of a range of salaries, from lowest to highest. Let’s say salaries were listed for an industry as follows: 

$45,000, $55,000, $65,000, $75,000, and $150,000 

The $65,000 salary would be the median salary because it’s in the middle of all the salaries. Since it’s the middle of the range, median salary is usually more representative of a typical worker — someone who isn’t entry level but they’re also not a highly experienced executive earning at the top of the range.

Agencies like the U.S. Bureau of Labor Statistics (BLS) collect data on what workers earn in the U.S., then break the data into categories. BLS classifies salary information from full-time workers (people that typically work over 35 hours per week) and part-time workers (less than 35 hours per week). 

People with multiple jobs are classified as either full-time or part-time based on how many total hours per week the person worked at all their jobs. The Social Security Administration (SSA) also collects and publishes an Average Wage Index (AWI), which contains data on salary history over the years.

According to BLS, the median weekly wages for full-time workers in the country totaled $1,214 as of quarter three in 2025.

According to the SSA’s 2023 AWI, average salary per worker has continued to increase since at least 1984. From 2023 to 2024 for instance, the average salary increased by 4.84%.

An average or median salary refers to how much one person earns. Household income considers how much money everyone in a particular home earns.

The 2025 BLS survey shows that the median weekly wages for people between 16 and 19 was $622, while people 65 and up earned $1,193.

The same data shows that women of all races have a lower median weekly wage than men of the same race or ethnicity. In the third quarter of 2025, women’s median weekly wage was $1,082 while men earned $1,337.

Certain states and regions have higher salary numbers. For instance, the annual mean wage in New York state as of May 2024 was $80,630. Meanwhile, it was $49,740 in Mississippi for the same period.

Your industry and job role significantly impact wage rates as well. Generally, specialized fields (such as engineering) tend to pay more than less specialized fields (like retail).

Wages are impacted by education level also. More education is typically required for specialized jobs, which in turn tends to come with a higher rate of pay.

If possible, consider relocating to a region with higher average pay — just be sure to consider the cost of living, too.

Research salary for other roles within your industry, then take classes or become certified for those roles that pay more and are in high demand.

You could also consider going back to college to earn a degree in a field that pays more.

Don’t forget to ask your manager for a raise or additional benefits to boost your salary. You can also start a side hustle, such as becoming a business consultant.

When comparing salaries to yours, consider what your take-home pay would be after taxes and after adjusting for inflation. That gives you a more realistic idea of the money you actually take home from your paycheck.

Myth: “Average salary = typical salary” 

Remember, an average salary is not the same as a median salary. Often, median salary numbers provide a more realistic view into what might be “typical” pay for a particular industry.

Mistake: Ignoring taxes, benefits, or bonuses

Your salary includes the number on your paycheck, but it also includes benefits (like time off or paid health insurance) and any bonus you may earn for exceeding your goals. Pay attention to the taxes withheld from your pay as well as your bonuses and benefits to better understand your total compensation package.

Mistake: Comparing across regions without adjusting for cost of living.

It’s easy to look at the higher salaries in big metro areas and think that’s the end of the story. However, the cost of living in those same areas is often higher, which can quickly eat away at a higher salary.

Myth: “More education always equals much more salary”

Education can sometimes come with higher pay, but it’s not a guarantee. Factors like your industry, job type, years of experience, and more also come into play.

Mistake: Not factoring in job/industry demand changes.

When considering an industry or job change, look at whether that field is in demand today. But also look ahead to any potential drop in future demand — say, from technologies like AI that could make some jobs obsolete.

While the term “average salary” sounds simple, it actually involves multiple factors. And the median salary can often give you a better idea of the typical pay range for an industry or job. Be sure to dig deeper into salaries as you compare across industries, role

The above article is intended to provide generalized financial information designed to educate a broad segment of the public; it does not give personalized tax, investment, legal, or other business and professional advice. Before taking any action, you should always seek the assistance of a professional who knows your particular situation for advice on taxes, your investments, the law, or any other business and professional matters that affect you and/or your business.