What Percent of Americans Make Over $100k?
Uncover the economic realities of earning over $100,000 in America, including who achieves this and its true purchasing power.
Understanding income distribution in the United States offers valuable insights into economic well-being across the population. Benchmarks like a $100,000 annual income serve as significant financial milestones for many individuals and households. Examining these income levels helps to illustrate prevailing economic conditions, highlight disparities, and provide context for personal financial planning. This analysis moves beyond simple averages to reveal the complexities of earnings, considering factors that influence how income translates into real-world living standards.
Current Income Distribution
In 2023, approximately 38.9% of U.S. households earned more than $100,000 annually. This figure represents the combined income of all individuals aged 15 and over within a household, encompassing wages, salaries, investments, and other sources. This differs from individual income, as multiple earners in a household can significantly increase the total household income.
About 15.05% of individuals earned over $100,000 annually as of 2024. While a six-figure income is a substantial achievement for an individual, it is more common for households to reach this threshold, often due to dual-income arrangements. For instance, the median household income in 2023 was around $77,700, reflecting the midpoint of all household incomes.
Demographic Characteristics of High Earners
Several demographic factors correlate with higher earning potential. Education plays a significant role, with higher levels of educational attainment leading to increased earnings. For example, workers with graduate degrees consistently have lower unemployment rates and higher median earnings. In 2022, individuals aged 25 to 34 with a master’s or higher degree had median earnings of $80,200, substantially more than those with only a bachelor’s degree.
Age also influences income, with earnings peaking during working years. The percentage of individuals earning over $100,000 tends to rise with age, reaching its highest proportion for those in the 35-44 age group, where about 25% of individuals earn above this amount. This proportion then slightly decreases for older age groups, such as those 55 and older. Certain occupations and industries are associated with high incomes, including healthcare professions like surgeons and anesthesiologists, and roles in finance and technology, such as chief financial officers and data scientists.
Geographic location significantly affects earning potential and the prevalence of high earners. Areas with a higher cost of living, particularly major metropolitan centers, often have higher average incomes to offset increased expenses. However, this does not always translate to greater purchasing power. There are also disparities across gender, with men being twice as likely as women to earn over $100,000 annually, reflecting a persistent income gap.
Historical Context of Income Growth
The percentage of individuals and households earning over $100,000 has evolved over time, reflecting broader economic shifts and inflationary pressures. From 1980 to 2006, the proportion of U.S. households earning $100,000 or more (in inflation-adjusted dollars) nearly doubled, growing from 8.6% to 19.1%. More recently, the share of households earning above $100,000 increased by 1.9 percentage points from 2020 to 2025, reaching an estimated 41.9% in 2025.
Inflation has a substantial impact on the real value of $100,000 over time. Nominal income growth refers to the increase in the dollar amount of earnings, while real income growth accounts for changes in purchasing power due to inflation. For instance, the median household income increased by 4.0% in real terms between 2022 and 2023, reaching $80,610. A $100,000 income in a past decade would have had considerably more purchasing power than it does today. Economic factors such as technological advancements, shifts in industry, and changes in workforce education contribute to these long-term income trends.
The Value of $100,000
Earning $100,000 annually can signify vastly different living standards depending on one’s geographic location. The purchasing power of this income is heavily influenced by the local cost of living, which includes expenses like housing, food, transportation, and utilities. For instance, a $100,000 income in a major metropolitan area with high costs, such as Manhattan, New York, might translate to a spending power of only around $30,362 after taxes and cost of living adjustments in 2025. In contrast, the same $100,000 could have a spending power closer to $89,114 in a lower-cost city like El Paso, Texas.
Taxes also play a significant role in determining the net value of a $100,000 income. Federal income tax, Social Security, and Medicare taxes are universally applied, but state and local income taxes vary widely. For example, some states do not levy a state income tax, which can leave more disposable income for residents. For the 2024 tax year, a single filer earning $100,000 would be subject to federal income tax rates that place them in the 22% bracket, after considering the standard deduction of $14,600. The actual take-home pay and subsequent purchasing power can differ substantially from the gross $100,000 figure.