How Many People Make Six Figures?

A six-figure income, defined as annual earnings of $100,000 or more, represents a notable financial milestone. This income level often suggests financial stability and opportunity. Understanding the distribution of such incomes provides insight into economic structures and varying financial landscapes. This overview explores the statistical prevalence of six-figure incomes, examining who achieves this earning level and how these figures are understood within broader economic contexts.

Prevalence of Six-Figure Earners

The proportion of individuals and households reaching a six-figure income varies significantly across the United States. Recent data indicates that approximately 13% to 15% of individual workers aged 15 and older earn over $100,000 annually. In 2024, about 21.1% of all individual workers earned a six-figure income.

The picture changes when examining household incomes, which often combine the earnings of multiple individuals within a single residence. In 2023, around 34.5% to 38.9% of U.S. households reported annual incomes of $100,000 or more. Projections for 2025 estimate this percentage to rise to 41.9% of households. This distinction highlights that many six-figure households achieve this status through combined earnings, rather than a single earner reaching the threshold independently.

Demographic Insights into Six-Figure Income

Attaining a six-figure income is often influenced by various demographic factors, including age, education, gender, industry, geographic location, and race or ethnicity. Income tends to follow a life-cycle pattern, with earnings generally increasing with age and experience. Individuals aged 35 to 44 are particularly likely to be six-figure earners, with approximately one in four people in this age group reaching this income level. Peak earnings for individuals are often observed around age 66.

Higher levels of education consistently correlate with increased earning potential, as advanced degrees often lead to higher median incomes. There remains a notable disparity in six-figure earning rates between genders; roughly 25% of men earn six figures compared to about 12% of women. Among full-time workers, 28% of men earn over $100,000, while 19% of women do so, reflecting a wage gap where women earn approximately 83 cents for every dollar earned by men.

Certain industries, such as technology, finance, and healthcare, are more prone to yielding six-figure incomes due to specialized skills and high demand. Geographic location also plays a significant role, as economic opportunities and the cost of living vary widely across the country. States with higher median household incomes, such as Massachusetts and Maryland, tend to have a greater prevalence of six-figure earners.

Racial and ethnic groups exhibit distinct patterns in income distribution. Asian households are the most likely to earn six figures, with over half reporting incomes at this level. Individually, around 49% of Asian adults earn over $100,000, compared to 21% of White adults, 13% of Hispanic adults, and 11% of Black adults, indicating disparities.

Contextualizing Six-Figure Income

Understanding a six-figure income requires considering important distinctions. The difference between individual and household income is fundamental; a household’s income aggregates earnings of all members, meaning a “six-figure household” might consist of multiple earners each contributing less than $100,000 individually.

A six-figure income typically refers to gross income, which is the total earnings before any deductions. From this gross amount, various obligations are subtracted, including federal income tax, state income tax (where applicable), and FICA taxes, which fund Social Security and Medicare. Additional deductions such as contributions to retirement accounts, health insurance premiums, and other benefit costs further reduce the actual take-home or net pay.

The purchasing power of a $100,000 income varies considerably based on the cost of living in a particular area. Earning $100,000 in a major metropolitan area with high housing and living expenses will provide a different standard of living compared to earning the same amount in a more rural or lower-cost region. A six-figure income may feel financially stretched in some areas while providing a comfortable lifestyle in others.

When discussing income data, it is important to differentiate between median and mean income. Median income represents the midpoint of all incomes, with half earning above and half below, offering a more representative view of a typical earner. Mean income can be skewed upward by a small number of extremely high earners.

Changes in Six-Figure Earners Over Time

The landscape of six-figure earners has undergone substantial transformation over several decades, influenced by economic growth and evolving labor market demands. The share of U.S. households earning $100,000 or more, when adjusted for inflation, has more than tripled since the mid-20th century. For instance, in 1967, only 13% of households earned an inflation-adjusted $100,000 or more, a figure that climbed to 41% by 2023. This upward trend suggests a gradual movement of households into higher income brackets.

The number of households achieving a six-figure income has effectively doubled since 1980, when approximately 15.2% of households met this criterion. This increase is partly attributable to ongoing economic expansion and a sustained demand for highly skilled workers, particularly within sectors like technology. The increasing proportion of households and individuals reaching the six-figure mark reflects changes in wage structures and economic opportunities over the long term.