According to the U.S. Census Bureau, over 24% of Americans made over $100,000 a year in 2020.
According to IBISWorld, 34.4% of American households will earn more than $100,000 a year in 2022.
Facts About Americans Making over $100,000
Source: PYMNTS and Lending Club, June 2022 Report
- 42.4% of Americans earning more than $100,000 a year reported living paycheck to paycheck
- Of the 42.4% who lived paycheck to paycheck, 23% struggled to pay their bills
- 33% of Americans earning more than $250,000 a year reported living paycheck to paycheck
- Of the 33% who lived paycheck to paycheck, 12.3% struggled to pay their bills
- Their average credit score was in the 700s (a credit score is between 300 and 850)
Living paycheck to paycheck means you spend most of what you earn on bills and expenses and have little or nothing left to put towards savings or investments.
Regardless of how much money you earn, you should always prioritize saving.
Learn about the Advantages of Savings Account.
Facts About American Households Making over $100,000
Source: IBISWorld
- In 2022, 34.4% of households earned more than $100,000 a year
- Last year, in 2021, 33.8% of households earned more than $100,000 a year
- In 1980 (over 40 years ago) 15.2% of households earned more than $100,000 a year
- High-paying jobs in the technology and financial industry contribute to the increase in households earning more than $100,000 a year
Source: U.S. Census Bureau, Income and Poverty in the United States: 2020
- 15.3% of households earned $100,000 to $149,999
- 8% of households earned $150,000 to $199,999
- 10.3% of households earned $200,000 and over
Facts About The Average Americans Income
Source: Bureau of Labor Statistics, Q2’22 data
- 118.9 million Americans were full-time wage and salary workers*
- Median weekly earnings were $1,041 (including all genders, ethnicities, races, professions, etc.)
- Median weekly earnings for women only were $943
- Median weekly earnings for men only were $1,144
- Asians ($1,336) had the highest median weekly earnings compared to Whites ($1,068), Blacks ($885), and Hispanics ($812)
- By age, men between 35 and 64 years old had the highest median weekly earnings
- By education, people in management, professional occupations had the highest median weekly earnings
- The lowest weekly earnings were from people in service occupations (i.e., server)
- People with a bachelor’s degree earned more than those with a high school diploma
*The Bureau of Labor Statistics “Usual Weekly Earnings of Wage and Salary Workers Second Quarter 2022” report does not include self-employed Americans. This means there are more than 118.9 million American workers as some individuals are self-employed.
Source: PYMNTS and Lending Club, June 2022 Report
- In April 2022, 61.3% of Americans were living paycheck to paycheck. A year ago in April 2021, 52% of Americans were living paycheck to paycheck.
- In April 2022, 79.7% of Americans who earned less than $50,000 were living paycheck to paycheck.
- In April 2022, 63.8% of Americans who earned between $50K-$100K were living paycheck to paycheck.
- In April 2022, 42.4% of Americans who earned more than $100,000 were living paycheck to paycheck.
- The report found that there’s a strong correlation between income and credit score. The higher the income, the higher the credit score. For example, people that earned less than $50,000 had a 641 credit store. People that earned more than $250,000 a year had a 758 credit score.
What are median weekly earnings?
The median is the midpoint in a range of numbers sorted from lowest to highest (or highest to lowest).
In terms of income, half of Americans earned more than the median weekly earnings and the other half earned less than the median weekly earnings.
Here’s an example, this is a list of 21 sample earnings sorted from lowest to highest. The median (or midpoint) is $40,500. This means that half of the 21 people earned more than $40,500 and the other half earned less than $40,500.
- $35,500
- $36,000
- $36,500
- $37,000
- $37,500
- $38,000
- $38,500
- $39,000
- $39,500
- $40,000
- $40,500
- $41,000
- $41,500
- $42,000
- $42,500
- $43,000
- $43,500
- $44,000
- $44,500
- $45,000
- $45,500
Americans in the Top 1%, 5%, and 10%
Source: Economic Policy Institute
What does it take to be in the Top 1%, 5%, and 10%?According to the Economic Policy Institute (EPI), you need to earn at least six figures each year.
Six figures mean you need to earn at least $100,000.In 2020, here were the average wages of those in the Top 0.1%, 1%, 5%, and 10%:
As you can see from the table above, you have to earn at least 3 million dollars to be in the Top 0.1%.
The Economic Policy Institute (EPI) found that the Top 0.1% has become significantly richer than even the Top 1%.
For example, since 1979, wages for the Top 1% grew by 179% while wages for the Top 0.1% grew by 389%.
The American Middle Class
Source: Pew Research Center
Americans living in middle-class households continue to decline. In 1971, 61% of Americans lived in middle-class households.
In 2021, only 50% of Americans lived in middle-class households.
The median income of middle-class households was $90,131.One reason Americans living in middle-class households have decreased is that Americans living in upper-income households have increased.
In 1971, 14% of Americans lived in upper-income class households.
In 2021, 21% of Americans lived in upper-middle households. The median income of upper-income households was $219,572.
Impact of the COVID-19 Pandemic on Economic Class
Source: Pew Research Center
The shortest recession recorded in history occurred during the COVID-19 pandemic. The recession lasted only three months from February 2020 to April 2020.
Despite the economic uncertainty during the COVID-19 recession, the share of adults living in lower, middle, and upper-income households remained almost unchanged.
In 2021, here’s the breakdown of adults living in their respective income classes:
- Lower Income Households – 29%
- Middle Income Households – 50%
- Upper Income Household – 21%
In 2020, here’s the breakdown of adults living in each income class:
- Lower Income Households – 29%
- Middle Income Households – 51%
- Upper Income Household – 21%
Although the share of Americans living in the lower, middle, and upper-income classes remained almost unchanged, COVID-19 did have a significant effect on adults living in lower and middle-income households.
Before the COVID-19 pandemic in 2019, the median income across all households increased from $68,004 in 2010 to $79,475 in 2019. A total increase of $11,471 in nine years from 2010 to 2019.
After the pandemic, income fell by $1,524 to $77,951 in just one year in 2020.
To be considered lower, middle, or upper-income, your income and household size are all factored in.
Here’s a table that breaks down the details:
Lower-Income Households
COVID-19 decreased lower-income households’ income by 3%.28.2% of adults in lower-income households experienced unemployment at some point in 2020.
In January 2021, about 1 in 3 (or 31%) adults in lower-income households said their financial situation had worsened in the last year. Lower-income adults had a household income of less than $52,000.
Before the COVID-19 pandemic in 2019, lower-income households saw a rise in income from $26,371 in 2010 to $30,877 in 2019. A total increase of $4,506 in nine years from 2010 to 2019.
After the pandemic, income fell by $914 to $29,963 in just one year in 2020.The unemployment rate for lower-income adults in 2020 was 28.2%. The majority (64%) of adults in the lower-income class in 2020 remained in the same lower-income class in 2021.
The remaining 36% transitioned to either the middle (32%) or upper (4%) income class.
In other words, 4% of adults in the lower-income class in 2020 rose to the upper-income class in 2021.
Middle-Income Households
COVID-19 decreased middle-income households’ income by 2.1%.13.8% of adults in middle-income households experienced unemployment at some point in 2020.
In January 2021, 18% of adults in middle-income households said their financial situation had worsened in the last year. Middle-income adults have a household income of about $52,000 to $156,000.
Before the COVID-19 pandemic in 2019, middle-income households saw a rise in income from $79,838 in 2010 to $92,042 in 2019. A total increase of $12,204 in nine years from 2010 to 2019.
After the pandemic, income fell by $1,911 to $90,131 in just one year in 2020.The unemployment rate for middle-income adults in 2020 was 13.8%.
The majority (68%) of adults in the middle-income class in 2020 remained in the same middle-income class in 2021. The remaining 32% transitioned to either the upper (16%) or lower (16%) income class.
In other words, 16% of adults in the middle-income class in 2020 rose to the upper-income class in 2021.
Upper-Income Households
COVID-19 decreased upper-income households’ income by less than 1%, 0.5% to be exact.7.8% of adults in upper-income households experienced unemployment at some point in 2020.
In January 2021, only 11% of adults in upper-income households said their financial situation had worsened in the last year. Compared to 31% for lower-income households and 18% for middle-income households, 11% for upper-income households doesn’t sound so bad.
Upper-income adults have a household income of more than $156,000.
Before the COVID-19 pandemic in 2019, upper-income households saw a rise in income from $185,695 in 2010 to $220,783 in 2019. A total increase of $35,088 in nine years from 2010 to 2019.
After the pandemic, income fell by $1,211 to $219,572 in just one year in 2020. The unemployment rate for upper-income adults in 2020 was 7.8% compared to 28.2% for lower-income and 13.8% for middle-income adults.
The low unemployment rate for upper-income adults compared to lower and middle-income adults was most likely due to the type of jobs that were affected in 2020.
There was a lot of volatility in jobs in the service industry including restaurants and retail compared to office jobs where the individual had the option to work from home. The majority (64%) of adults in the upper-income class in 2020 remained in the same upper-income class in 2021.
The remaining 36% transitioned to either the middle (32%) or lower (4%) income class. In other words, 4% of adults in the upper-income class in 2020 fell to the lower-income class in 2021.
Earnings by Demographics
Source: Bureau of Labor Statistics
Here’s a break of earnings by demographics including race / ethnicity, age, gender, education, and occupation.
What is the difference between earnings and income?
Income is the money you receive from employment, benefits (i.e., a pension if retired), and investments for example.
Earnings are the money you receive from employment only.
Earnings by Race / Ethnicity
According to the Bureau of Labor Statistics (BLS), median weekly earnings for full-time wage and salary workers were $1,041 during Q2’22 (April – June 2022).
Median weekly earnings increased by 5.2% compared to last year during Q2’21 (April – June 2021).
Median weekly earnings of $1,041 include all races and ethnicities. To better understand how this number compares by race and ethnicity, here’s the breakdown:
A few points from the Earnings by Race/Ethnicity table above:
- Whites and Asians earned more than the median of $1,041 (which includes all races/ethnicities)
- Blacks, African Americans, Hispanics, and Latinos all earned less than the median of $1,041
- Asians had the highest median weekly earnings
- Hispanics or Latinos had the lowest median weekly earnings
Earnings by Age
Before we get into earnings by age, here’s a summary of the number of workers by age:
- Only 1.43% were teens, 16 to 19 years
- Over 90% were over 25 years old
- Over 4% (4.32% to be exact) were over 65 years old
A few points from the Earnings by Age table above:
- People 45 to 54 years old earned $140 more than the median. The most out of all age brackets.
- People over 65 years old earned $18 less than the median.
- People 16 to 19 years old earned $438 less than the median.
- People 20 to 24 years old earned $338 less than the median.
- Overall, you begin to earn more than the median after you turn 35 years old.
Earnings by Sex
Of the 118.9 million American full-time workers, 53.4 million (or 45%) were women and 65.6 million (or 55%) were men.
Compared to a year ago (April – June 2022) there were 2.3 million more women and 3.2 million more men working full-time.
Median weekly earnings were $943 for women and $1,144 for men. This means that women earned $201 less than men each week in the second quarter of 2022.
Earnings by Education
Before we get into earnings by education, here’s a summary of the number of workers by education:
- 48.6 million had at a Bachelor’s degree or higher
- 6.5 million had less than a high school diploma
- 26 million had at least some college education
A few points from the Earnings by Education table above:
- People with advanced degrees (master’s, professional, and doctoral degrees) had the highest median weekly earnings
- People with less than a high school diploma had the lowest median weekly earnings
- People with advanced degrees earned $400 more a week than those with just a Bachelor’s degree
- High school graduates earned $149 more a week than non-high school graduates
- Overall, the more education you have the higher your median weekly earnings were
Earnings by Occupation / Profession
Before we get into earnings by occupation, here’s a summary of the number of workers by occupation:
- ~42.5% work in management, professional, and related occupations
- ~12.4% work in service occupations
- ~18.7% work in sales and office occupations
- ~9.3% work in natural resources, construction, and maintenance occupations
- ~12.6% work in production, transportation, and material moving occupations
- Overall, most Americans work in management, professional, and related occupations
A few points from the Earnings by Occupation table above:
- People that worked in management, professional, and related occupations had the highest median weekly earnings
- People that worked in service occupations had the lowest median weekly earnings
Poverty in the United States
Source: U.S. Census Bureau, Income and Poverty in the United States: 2020
As of July 2022, the latest available poverty data from the U.S. Census Bureau is from the 2020 report.
In 2020, 11.4% (or 37.2 million) of Americans lived in poverty.
Poverty increased by 1% (or 3.3 million people) in 2020. This is the first time in five consecutive years that the poverty rate has increased instead of decreased.
Poverty Rate by Race and Hispanic Origin
The highest poverty rate was among Blacks at 19.5% (or 8.5 million people). The lowest poverty rate was among Asians at 8.1% (or 1.6 million people).
This means that 19.5% of Blacks and 8.1% of Asians lived in poverty in 2020.
Races in the Census Bureau report include White, White not Hispanic, Black, Asian, and Hispanic (any race).
Poverty Rate by Gender
The poverty rate for men was 10.2% (up .8% vs last year). The poverty rate for women was 12.6% (up 1.1% vs last year). Overall, the poverty rate for women was higher than for men in all age groups.
Age groups include:
- Under age 18
- Aged 18 to 64
- Aged 65 and older
Poverty Rate by Age
The poverty rate was highest among those under age 18 at 16.1%. The poverty rate was the lowest among those aged 65 and older at 9%. Compared to last year, poverty increased the most among those under age 18 by 1.6%.
Poverty Rate by Nativity
The poverty rate was highest for non-citizens at 17.8%. The poverty rate was the lowest for naturalized citizens at 9.2%. Naturalized citizens are foreign-born (not born in the United States) that became United States citizens.
Poverty Rate by Region
The Census Bureau report included four regions. They were the Northeast, Midwest, South, and West regions.
The poverty rate was highest in the South at 13.3%. The poverty rate was the lowest in the Northeast and Midwest at 10.1% for both regions.
In the Northeast, 5.6 million people lived in poverty. In the Midwest, 6.8 million people lived in poverty. Poverty decreased in the Northeast and Midwest and increased in the South and West regions.
Poverty Rate by Metropolitan Statistical Area (MSA)
The poverty rate was highest in principal cities at 14.3% (or 15.1 million people).
The poverty rate was lowest outside principal cities at 9.1%. Compared to last year, poverty increased the most in principal cities by 1.2%.For reference, a principal city is the core city (or cities) in a metropolitan area.
Poverty Rate by Disability
The Census Bureau report included two disability statuses; people with a disability and people with no disability.
The poverty rate for people with disabilities was 25% while the poverty rate for people with no disability was 9.3%.
Poverty Rate by Educational Attainment
The poverty rate was highest among those with no high school diploma at 24.7%.
The poverty rate was lowest among those with a Bachelor’s degree or higher at 4%.
People without a high school diploma were six times more likely to live in poverty than those with at least a Bachelor’s degree.
Compared to last year, poverty increased the most among those with a high school degree and no college.
Poverty Rate by Families
The Census Bureau report included three family types; married couple, female householder (no spouse), and male householder (no spouse).
The poverty rate was highest among female householders (no spouse) at 23.4%. The poverty rate was lowest among married couples at 4.7%.
FAQs
Question: What is the average American’s income?
Answer: The average personal income in the United States was $53,996 in 2020.
Question: What is the average American’s household income?
Answer: The median household income in the United States was $67,521 in 2020.
Question: What percentage of Americans make over 100k?
Answer: According to the U.S. Census Bureau, approximately 24% of Americans made over $100,000 in 2020.
Sources
- 1PYMNTS / Lending Club – New Reality Check: The Paycheck-to-Paycheck Report, June 2022
- 2Bureau of Labor Statistics – Usual Weekly Earnings of Wage and Salary Workers Second Quarter 2022
- 3IBISWorld – Households Earning More Than $100,000
- 4U.S. Census Bureau – Income and Poverty in the United States: 2020
- 5Pew Research Center – COVID-19 Pandemic Pinches Finances of America’s Lower- and Middle-Income Families
- 6Pew Research Center – How the American middle class has changed in the past five decades
- 7Economic Policy Institute – Wage inequality continued to increase in 2020
- 8FRED Economic Data – Mean Personal Income in the United States