Question 1

What is the average American family income?

Accepted Answer

In 2019, the US median family income was estimated at $86,011 by the US Census Bureau. Keep in mind that this is the median income, meaning that it is not your usual mathematical average since that would considerably push the numbers up due to the incredibly large amounts of money earned by the richest US citizens. As such, we should note that the US median income represents the point where 50% of people start earning more and 50% start earning less — hence why it is used as a solid point of reference. Do keep in mind that the average family income represents the amount earned by families consisting of at least two people who live in the same household at the same time. Compared to 2018, this average income has increased by 7.4%.

Question 2

What percentage of income does the average American pay in taxes?

Accepted Answer

The answer to this question is quite complicated, given the complex taxation framework that operates in the United States. Based on this aspect, the taxation system works via tax brackets — in 2021, the tax brackets implemented by the federal government were between 10% and 37% of the total income, subject to change based on the individuals’ incomes. Because of this, it is yet again important for us to apply the median formulas to help determine a credible average paid in taxes. Interestingly, in 2018, the top 1% of taxpayers accounted for more income taxes paid than the bottom 90% combined.

Question 3

What is considered a good salary in the United States?

Accepted Answer

Firstly, it is important for us to agree on what a good salary actually represents since there are numerous conflicting opinions on this matter. First off, good is above average and should be enough for people to cover living expenses, food, transportation expenses, utilities, apparel, and credit payments, while leaving a little wiggle room for savings and occasional purchases. Therefore, a good salary is certainly higher when compared to the average salary in America. Similarly, a good salary depends on the area you live. For instance, for those living in the San Francisco area, $100,000 per year might be considered average. On the other hand, a $50,000 average yearly income is good enough for people living in rural areas. Therefore, we can use this information to state that a good salary in the urban area ranges from $70,000–150,000, whereas a good salary in rural areas ranges from $50,000–$80,000. Of course, the median household income also varies considerably.

All insights Related Articles

What Is the Average American Income in 2023?

27+ Crucial Financial Statistics (2023 Update)

Insurance Industry Trends 2023: Growth, Stats, and Forecast

The State of Insurance Industry – 2023 (Statistics & Facts)

35+ Student Loan Debt Statistics (2023 Edition)

How Much Do Americans Drive? (Infographic)

28+Texting and Driving Statistics Every Driver Should Know

Electric Car Statistics in the US and Abroad

18 Chilling Winter Driving Statistics in 2023