Key Takeaways. The 2023 median household income in the United States was $80,610 (including salary, investment earnings, and more). The average salary in 2023 for an individual worker was $65,470. Demographics like location, occupation, race, and gender significantly influence average wages.
Income distribution in the United States
Data source: U.S. Census Bureau (2025). Forty-five percent of American households earn less than $75,000 per year. Forty-three percent earn $100,000 or more.
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.
About 18% to 21% of individual US workers earn over $100,000 annually, though figures vary slightly by source and demographic, with higher percentages among men (around 25%) and the 35-44 age group (around 25%), while about 12% of women earn six figures, and roughly 34% of households reach this income level, indicating it's still a significant milestone but increasingly common, say recent data from YouGov and DQYDJ.
In California, a household can be considered middle class if it makes between $63,674 and $191,042. However, that range can change at the city level. SmartAsset used U.S. Census Bureau's 2023 American Community Survey 1-year data and analyzed the median household income in 100 of the largest U.S. cities and all states.
While $50,000 a year isn't a six-figure salary, it's often enough for a single person to be able to afford the basics — think housing, utilities, food, and insurance — and still have cash left over for fun and savings.
These guidelines are adjusted each year for inflation. In 2025, the federal poverty level definition of low income for a single-person household is $15,650 annually. Each additional person in the household adds to the total. For example, the poverty guideline is $32,150 per year for a family of four.
Asian Americans, particularly Indian Americans, consistently show the highest median household incomes in the U.S., often significantly above the national average and other racial/ethnic groups like White, Black, and Hispanic populations, though income disparities exist within different Asian ethnicities.
Top earners across the United States earn nearly least six figures, with an average income of over $99,971 for those in the top 10% in 2022. Earners in the top 1% need to make $1 million annually in states like California, Connecticut, Massachusetts, New Jersey, and Washington.
While exact figures vary, a smaller percentage of 30-year-olds earn $100k compared to older groups, but it's a significant milestone, with projections suggesting around 20-25% of Gen Z expect to reach $100k-$200k by age 30, while older data shows only a fraction of young adults hitting six figures, though many are climbing the ladder.
At 35, a common benchmark for net worth is around $135,000 (the median for ages 35-44), or roughly 2 times your annual income, but this varies greatly; some guidelines suggest saving 2x your income by 35, while others emphasize consistent saving towards future goals, even if you start with little. Focus on assets (savings, investments, home equity) minus liabilities (debts like student loans, mortgages) to calculate your personal net worth, adjusting for your individual income, goals, and starting point.
$80,000 a year is approximately $38.46 per hour, assuming a standard 40-hour workweek (2080 working hours per year), calculated by dividing your annual salary by 2080. This breaks down to about $1,538 weekly, $3,077 bi-weekly, or $6,667 monthly before taxes.
Their study revealed that, on average, higher incomes are indeed linked to greater happiness. However, for a subset of unhappy individuals, happiness rose sharply with income up to $100,000, then leveled off. For others, happiness continued to rise, and for the happiest group, it even accelerated beyond $100,000.
A middle-class salary varies widely but generally falls between two-thirds to double the median household income, which nationally translates roughly to $55,000 to $167,000 annually, depending on household size and, crucially, the cost of living in your specific city or state, with high-cost areas like San Jose requiring much higher earnings.
Yes, supporting a family on $70k a year is possible but challenging and highly dependent on location, family size, and spending habits, often requiring significant budgeting and living in lower cost-of-living areas, as high-cost cities make it extremely difficult, while a family of four might need over $100k in many states. Success hinges on balancing housing costs (ideally under $1,750/month), avoiding high debt, and potentially having one parent stay home to save on childcare, though some families manage with careful planning.