Bureau of Labor Statistics Data, Updated 2026
Average Salary by AgeWhere Do You Stand in 2026?
The average American worker earns $63,000 per year. But like most averages, that number hides more than it reveals. The median salary is $56,000 — and your age, education, industry, state, and gender all shift that number dramatically. Here is what the data actually says.
Written by Glen Bradford — Purdue engineer who had his first million at 24 and lost most of it by 28. Salary is not wealth. Let me show you the data.
Sources: Bureau of Labor Statistics, Current Population Survey & Occupational Employment Statistics (2024 data, projected to 2026 with ~3.5% wage growth)
$63K
Average salary (all ages)
$56K
Median salary (all ages)
45–49
Peak earning age bracket
$135K
90th percentile at peak
What's Inside
Salary by Age Group
Average, median, 75th percentile, and 90th percentile annual salary for full-time U.S. workers. The gap between average and median tells you how much top earners skew each age group. The 75th and 90th percentile numbers show you what "doing well" and "doing great" actually look like.
| Age Group | Average | Median | 75th %ile | 90th %ile |
|---|---|---|---|---|
| 20–24 | $41,000 | $35,000 | $46,000 | $58,000 |
| 25–29 | $52,000 | $45,000 | $62,000 | $82,000 |
| 30–34 | $62,000 | $55,000 | $78,000 | $105,000 |
| 35–39 | $68,000 | $60,000 | $86,000 | $120,000 |
| 40–44 | $72,000 | $62,000 | $90,000 | $130,000 |
| 45–49 | $74,000 | $63,000 | $92,000 | $135,000 |
| 50–54 | $72,000 | $62,000 | $88,000 | $128,000 |
| 55–59 | $68,000 | $58,000 | $82,000 | $118,000 |
| 60–64 | $62,000 | $54,000 | $76,000 | $110,000 |
| 65+ | $56,000 | $48,000 | $68,000 | $95,000 |
Source: BLS Current Population Survey (2024), adjusted for projected 2025-2026 wage growth. Full-time workers, annualized.
Lowest Median (20-24)
$35,000
Entry-level, first full-time roles
Peak Median (45-49)
$63,000
Peak earning years for most Americans
Lifetime Growth (Median)
+80%
From 20-24 to 45-49 peak
Visual: Salary Distribution by Age
Salary by Education Level
Education remains the single biggest lever for lifetime earnings. A bachelor's degree holder earns 71% more than someone with just a high school diploma. The data is unambiguous — but context matters more than the headline number.
| Education Level | Median | Average | Premium vs HS |
|---|---|---|---|
| High School Diploma | $42,000 | $46,000 | Baseline |
| Some College / Associate's | $49,000 | $54,000 | +17% |
| Bachelor's Degree | $72,000 | $82,000 | +71% |
| Master's Degree | $84,000 | $95,000 | +100% |
| Professional Degree (MD, JD) | $120,000 | $145,000 | +186% |
| Doctorate (PhD) | $105,000 | $120,000 | +150% |
The education premium is real, but context matters. A plumber with no degree and 15 years of experience often out-earns a liberal arts graduate with $80K in student loans. The ROI depends on what you study, not just that you studied. A $5,000 Salesforce certification can lead to $120K+ roles — compare that to a $100K MBA that might add $20K to your salary.
Gender Pay Gap by Age
Women working full-time earn approximately 82 cents for every dollar earned by men overall. But the gap is not uniform across age groups — it starts small and widens significantly as careers progress. Here is what the data actually says at every age bracket.
Men (Full-Time Median)
$62,000
Women (Full-Time Median)
$51,000
82 cents per dollar — $11,000/year gap
Widest Gap (50-54)
25%
$72K vs $54K — $18,000/year difference
| Age Group | Men Median | Women Median | Gap |
|---|---|---|---|
| 20–24 | $37,000 | $34,000 | 8% |
| 25–29 | $48,000 | $43,000 | 10% |
| 30–34 | $60,000 | $51,000 | 15% |
| 35–39 | $68,000 | $54,000 | 21% |
| 40–44 | $72,000 | $55,000 | 24% |
| 45–49 | $74,000 | $56,000 | 24% |
| 50–54 | $72,000 | $54,000 | 25% |
| 55–59 | $68,000 | $50,000 | 26% |
| 60–64 | $62,000 | $47,000 | 24% |
| 65+ | $55,000 | $42,000 | 24% |
Gap = percentage less women earn compared to men in the same age bracket. Source: BLS CPS (2024).
Visual: Men vs. Women Median Salary by Age
Honest Take on the Gender Pay Gap
The 82-cent number is real. It is not a myth, and dismissing it as "women just choose lower-paying jobs" misses the point entirely. The reason certain female-dominated professions pay less is itself part of the problem.
The most revealing finding in this data is how the gap widens with age. At 20-24, it is 8%. By 35-39, it is 21%. By 50-54, it is 25%. This pattern tracks with childbearing years, career interruptions, and the compounding effect of early-career pay gaps on raises and promotions.
When you control for same job, same experience, same hours, the gap narrows to about 5-8%. That is still real money — roughly $3,000-$5,000 per year for identical work. Over a 40-year career, that is $120K-$200K in lost earnings. That is a house.
Highest & Lowest Paying States
Salaries vary dramatically by state — a $30,000 gap separates the highest and lowest. But the "adjusted salary" column tells the real story: after accounting for cost of living, the gap nearly disappears. Massachusetts pays $76,600 but costs 40% more to live in. Mississippi pays $45,800 but costs 16% less. The purchasing power difference? About $200.
Top 10 Highest-Paying States
| # | State | Median Salary | Adjusted Salary |
|---|---|---|---|
| 1 | Massachusetts | $76,600 | $54,714 |
| 2 | Washington | $74,800 | $55,407 |
| 3 | New York | $74,300 | $50,203 |
| 4 | California | $73,200 | $52,662 |
| 5 | Connecticut | $72,800 | $55,573 |
| 6 | New Jersey | $72,400 | $55,692 |
| 7 | Maryland | $70,800 | $55,313 |
| 8 | Alaska | $70,200 | $55,714 |
| 9 | Colorado | $69,100 | $58,559 |
| 10 | Virginia | $68,500 | $57,563 |
10 Lowest-Paying States
| # | State | Median Salary | Adjusted Salary |
|---|---|---|---|
| 1 | Mississippi | $45,800 | $54,524 |
| 2 | West Virginia | $46,400 | $54,588 |
| 3 | Arkansas | $47,600 | $55,349 |
| 4 | New Mexico | $48,200 | $54,773 |
| 5 | Louisiana | $48,800 | $54,831 |
| 6 | Alabama | $49,400 | $56,782 |
| 7 | Kentucky | $49,800 | $56,591 |
| 8 | Oklahoma | $50,200 | $57,701 |
| 9 | Idaho | $50,600 | $53,263 |
| 10 | South Carolina | $50,800 | $55,824 |
The cost-of-living plot twist:
After adjusting for cost of living, the "adjusted salary" column tells a very different story. Colorado and Virginia offer the best real purchasing power among high-paying states, while Alabama and Oklahoma quietly offer better real wages than New York or California. Before you chase a higher nominal salary in a coastal city, run the numbers through our cost of living comparison tool. For tax implications, see our best states for taxes guide.
Top 10 Highest-Paying Industries
Your industry matters more than your degree. The gap between the highest and lowest-paying industries is over 3x — choosing the right field is the highest-ROI career decision you can make. The "top end" column shows what top performers in each industry actually earn.
Peak Earning Years — When and Why
Most Americans hit their salary ceiling between 45 and 54 — the decade where deep expertise meets organizational seniority. But the path to that peak starts much earlier. Here is the typical trajectory by decade.
+50–100%
typical growthThe biggest salary jumps happen here. You go from entry-level to mid-level. Job-hopping every 2-3 years is the fastest lever — internal raises average 3-4%, while job switches average 10-20%.
+20–40%
typical growthGrowth slows unless you move into management or specialized roles. This is when negotiation skill matters most. The difference between asking and not asking over a career is easily $500K+.
+5–15%
typical growthPeak earning years for most professions. Growth becomes incremental. The big moves here are lateral — switching industries, starting a business, or climbing to executive level.
0% to -10%
typical growthSalaries plateau or decline slightly. Some workers voluntarily step down for less stress. Age discrimination, while illegal, is a documented reality in many industries, especially tech.
-10% to -30%
typical growthMany shift to part-time, consulting, or lower-stress roles. Income drops, but this is often by choice. The workers who maintain high income here are typically self-employed or in executive roles.
Why 45-54 is the peak: The 45-54 bracket earns the most because it combines deep expertise with organizational seniority. But here is the catch — if you have not built valuable skills by your early 40s, the plateau comes earlier and lower. Your 20s and 30s are investment decades. Your 40s and 50s are harvest decades.
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8 Ways to Increase Your Salary
Actionable strategies backed by data. No "hustle harder" platitudes — just math and evidence.
Negotiate Every Offer — Without Exception
85% of people who negotiate their salary get some increase. The average successful negotiation adds $5,000-$10,000 to an offer. Yet only 39% of workers even try. One uncomfortable 15-minute conversation, compounded over 30 years of raises based on that higher starting point, is worth $500K+.
Negotiation guideSwitch Jobs Every 2-3 Years (Early Career)
Workers who stay at the same company average 3-4% annual raises. Workers who switch employers average 10-20% salary increases. Over the first decade of your career, strategic job-hopping can mean $200K+ in cumulative additional earnings. Loyalty is admirable, but your employer is not going to voluntarily pay you market rate.
Build a Side Income Stream
The fastest way to increase total income is adding a second stream. Freelancing, consulting in your field, or building a digital product can add $1K-$10K+ per month. Side income also gives you leverage at your day job — you negotiate differently when walking away is a real option.
Side hustle calculatorGet a High-ROI Certification or Skill
Not all education is equal. A $5,000 cloud computing certification (AWS, Azure, GCP) can increase your salary by $15K-$30K. A Salesforce certification costs $200 and opens doors to $120K+ roles. Compare that to a $100K MBA that might add $20K. Calculate the ROI before you invest in any credential.
Move to a Higher-Paying Industry
The same role — project manager, data analyst, software developer — can pay 2-3x more depending on industry. A PM in retail earns ~$65K. The same PM in tech earns ~$130K. In finance, ~$145K. Your skills are transferable. Your industry is a choice.
Relocate to a Higher-Paying Market
Geographic arbitrage is real. A software engineer in Austin earns $120K. The same role in San Francisco pays $180K. Even after cost of living adjustments, the delta can be $20K-$40K in real purchasing power. Remote work is even better — earn SF wages while living in Austin.
Cost of living toolAsk for a Promotion (Don't Wait)
Most promotions are not given — they are requested. Document your wins, quantify your impact in dollar terms, and schedule a meeting with your manager. Companies rarely proactively promote people. The employee who asks gets promoted 18 months sooner on average than the one who waits to be noticed.
Build Leverage Beyond Your Resume
The highest-paid people are not just skilled — they are visible. Write about your expertise. Speak at events. Build a portfolio. These activities create inbound demand for your skills, which shifts negotiation power entirely to your side. When companies come to you, you set the price.
Building wealth guideSalary vs. Net Worth
Income is what you earn. Net worth is what you keep. They are not the same thing — and confusing them is one of the biggest financial mistakes Americans make.
High Salary, Low Wealth
A dual-income couple earning $250K in Manhattan who spends $240K per year on lifestyle, rent, and daycare has a savings rate of 4%. After 20 years at that pace, their net worth (excluding retirement accounts) might be $200K. They are wealthy on paper and broke in practice.
Moderate Salary, Real Wealth
A single engineer in a low-cost city earning $75K who saves 40% — $30K/year — invested at 8% will have over $1.5 million in 20 years. They drive a used car, rent a modest apartment, and will be financially independent by 45.
Glen's Take
Purdue engineer → hedge fund → Salesforce dev → entrepreneur
At 24 I had my first million. By 28 I'd lost most of it on Chinese frauds and options. Salary is not the same as wealth. I know people making $200K who are broke and people making $60K who are millionaires. The difference is what you do with it.
I have had four completely different careers — Purdue engineer, hedge fund manager, Salesforce developer, entrepreneur — and each one taught me the same lesson from a different angle: your salary is a tool, not a trophy.
The wealthiest people I analyzed running my hedge fund did not get rich from paychecks. They got rich from owning things — equity, businesses, real estate. Salary is the vehicle. Ownership is the destination. And the gap between what you earn and what you keep is the only number that matters.
The most important section on this page is not the salary table. It's the link to the savings rate calculator. Because a 50% savings rate at $60K builds more wealth than a 5% savings rate at $200K. Every single time.
Are You Ahead or Behind?
Here is a quick framework. Find your age group in the table above, then compare your total annual compensation (salary + bonus + benefits value) to the median:
Below Median
Focus on skill development, certs, or industry switches
At Median
Doing average — the median is the starting line, not the goal
75th Percentile
Top quarter — focus on savings rate and investing
90th Percentile
Top 10% — salary is not your constraint, spending is
Remember: salary is just one piece of the puzzle. Someone earning $80K who saves 30% will build more wealth than someone earning $200K who saves 5%. Income is vanity. Net worth is sanity.
Frequently Asked Questions
What is the average salary in the United States in 2026?
The average annual salary in the U.S. is approximately $63,000, while the median is around $56,000. The average is higher because it gets pulled up by very high earners in tech, finance, and executive roles. The median — the point where half of workers earn more and half earn less — gives a more realistic picture of what a typical American makes.
Why is the average salary higher than the median?
The average includes every salary in the country, including CEOs making $20 million and tech workers making $400K. Those outliers pull the average up significantly. The median ignores extremes and finds the middle worker. If 9 people earn $50K and 1 earns $5 million, the average is $545K but the median is $50K. The median is almost always the more useful number for comparing your own salary.
What salary should I be making at 30?
The median salary for Americans aged 30-34 is about $55,000. If you are earning above that, you are ahead of most of your peers. At the 75th percentile, workers in this age group earn around $78,000, and the 90th percentile reaches $105,000. However, salary varies enormously by location, industry, and education. A software engineer in San Francisco at 30 might make $180K, while a teacher in rural Kansas might make $42K. Both can be financially healthy — cost of living is the equalizer.
At what age do salaries peak?
For most Americans, salaries peak between ages 45 and 49, with a median of about $63,000 and an average of $74,000. The 90th percentile peaks even higher at $135,000. After 50, median income begins to decline as some workers reduce hours, change to less demanding roles, or face age-related career headwinds. However, in high-income fields like medicine, law, and executive leadership, peak earnings often extend into the late 50s or 60s.
How much does a college degree increase salary?
A bachelor's degree holder earns a median of $72,000 compared to $42,000 for a high school diploma — a 71% increase, or roughly $30,000 more per year. Over a 40-year career, that gap compounds to over $1.2 million in additional earnings. The premium is even larger for professional degrees (MD, JD) at $120,000 median. But context matters: a plumber with no degree and 15 years of experience often out-earns a liberal arts graduate with $80K in student loans.
Is the gender pay gap real?
Yes. BLS data shows women working full-time earn approximately 82 cents for every dollar men earn overall, a gap of about $11,000 in median annual salary. The gap is smallest for young workers (8% for ages 20-24) and widens to 25-26% by ages 50-59. When you control for same job, same experience, same hours, the gap narrows to about 5-8%. That is still $3,000-$5,000 per year for the same work — or $120K-$200K over a career.
Which states pay the highest salaries?
Massachusetts leads with a median salary of $76,600, followed by Washington ($74,800), New York ($74,300), and California ($73,200). However, these states also have the highest costs of living. When adjusted for cost of living, Colorado and Virginia offer some of the best real purchasing power. The lowest-paying states — Mississippi ($45,800), West Virginia ($46,400), and Arkansas ($47,600) — have significantly lower costs of living that partially offset the gap.
How can I find out if I'm underpaid?
Compare your salary to the BLS data for your age group, then adjust for your education level, industry, and location. Sites like Glassdoor, Levels.fyi (for tech), and the BLS Occupational Outlook Handbook provide role-specific data. If you are below the median for your age, education, and industry combination, you likely have room to negotiate or switch employers. The most underpaid people are those who have stayed at the same company for 5+ years without a market-rate adjustment.
Recommended Resources
Tools & books I actually use and recommend
Interactive Brokers
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Open an AccountThe Intelligent Investor
Ben Graham's timeless guide to value investing. The book Warren Buffett calls "the best investing book ever written."
View on AmazonThe Psychology of Money
Morgan Housel on why managing money is about behavior, not intelligence. Short, brilliant chapters you'll re-read.
View on AmazonSome links above are affiliate links. I only recommend products I personally use. See my full disclosures.
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