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4 min read · Feb 22, 2024
What Percent Of Americans Make Over 100K: Ever wonder how you stack up to the rest of the country in terms of your salary? You’ve probably heard that the median household income in the U.S. is around $63,000. But what percent of Americans make over $100,000 per year? The answer may surprise you. According to the U.S. Census Bureau, just over 20% of Americans earn an annual salary of six figures or more. The percentage of Americans in the $100K+ club has actually grown over the past few decades as the cost of living has increased and higher-paying jobs have become more prevalent.
However, a $100,000 salary still puts you at more than double the median income, so people earning this much are certainly at the higher end of the pay scale. If you’re curious to see how your salary compares or want to know your chances of joining this upper-income bracket someday, read on to learn more about the percentage of Americans earning a sizable six-figure salary and what it takes to become one of them.
The Income Breakdown: How Many Americans Earn 6 Figures
According to the U.S. Census Bureau, only about 6% of Americans earn an annual salary of $100,000 or more. That amounts to around 8 million households crossing into 6-figure territory.
The top 3% of earners in the U.S., making $200,000 or more, represent approximately 1.5% of the population. People in prestigious professions like doctors, lawyers, scientists, and engineers are most likely to fall into this bracket.
Within the $100,000 to $200,000 range are managers, software engineers, accountants, architects, professors, and other specialized occupations. This group makes up around 15 million Americans or 5% of the population.
Where you live also greatly impacts your chances of earning a high salary. Areas with a high cost of living, like San Francisco and New York City, generally have much higher wages to match. The tech hubs of San Francisco, San Jose, and Seattle have some of the highest concentrations of 6-figure earners, with up to 20% of households crossing the $100,000 threshold.
More rural or low-cost areas of the country have far fewer high earners. In Mississippi, for example, only 3.5% of households make $100,000 or more. Wages and salaries are often much lower in these locations to match the lower costs of living.
Unfortunately, the distribution of high earners also reflects the gender pay gap that still exists in the U.S. The majority (57%) of Americans making $100,000 or more are men. At the highest income levels, over $200,000, nearly two-thirds of earners are male.
While the pay gap has narrowed in recent decades, more progress is still needed to achieve equal representation and pay for women, especially in the highest-paying professions and leadership roles. Closing the gender pay gap could add trillions to the U.S. economy over the long run.
In summary, earning a 6-figure salary in America is still relatively rare but more achievable if you pursue an advanced degree, work in a high-paying field, live in an area with many opportunities, and as a man, unfortunately, have a higher chance of reaching the top tiers of income. But with hard work and perseverance, people of all backgrounds can find their path to prosperity.
Factors That Impact Income Levels in the U.S
In the U.S., there are several factors that determine a person’s income level and the likelihood of earning over $100,000 per year. Some of these factors are within our control, while others are impacted by circ*mstances beyond our control.
One of the biggest factors that impacts your income potential is your level of education. In general, the more education you have, the higher your earning potential. Those with a high school diploma earn a median income of $38,000 per year. With a bachelor’s degree, the median income jumps to $64,000. Graduate and professional degrees result in even higher salaries, with a master’s degree earning a median of $77,000 and doctoral degrees earning a median of $97,000. Within specific fields like healthcare, technology, and business, advanced degrees can lead to salaries well over $100,000.
The type of job you have and the industry you work in also significantly impact your income. Jobs like physicians, software engineers, lawyers, and professors are more likely to earn over $100,000 due to high demand and skill level required. Working in high-growth, high-tech industries like healthcare, finance, and technology also often leads to higher pay. Geographic location and cost of living in your city or state can also affect salaries for the same job.
The more experience you have in your occupation, the more valuable you become to employers. This additional experience usually translates into higher pay. According to salary surveys, the average worker with 1–3 years of experience earns a median salary of $50,000. With 10–19 years of experience, the median pay rises to $65,000. For those with 20 years or more of experience, the median pay is over $80,000. Within many high-paying professions, salaries for very experienced workers can exceed $100,000.
Of course, there are other influences like work-life balance, job satisfaction, benefits, work environment, and work-related stress that contribute to a person’s income and career decisions. Making choices that align with your priorities and values may lead down a path different than one that strictly maximizes pay. But when it comes to the dollars and cents, level of education, occupation, industry, experience, skills, and job responsibilities are the major factors that determine a person’s likelihood of earning an annual salary over $100,000.
