What Percent of People Make 6 Figures?

A “six-figure income” is a common benchmark for financial success. Many individuals wonder how their earnings compare to the broader population and what percentage of people achieve this income level. This article defines a six-figure income, presents national statistics on its prevalence, and explores factors influencing earning potential.

Understanding the Six-Figure Threshold

A “six-figure income” refers to an annual earning of $100,000 or more. It is important to distinguish between individual income and household income when analyzing these figures.

Individual income represents the earnings of a single person, typically from wages, salaries, or self-employment. In contrast, household income includes the total money received by all individuals aged 15 and over within a single household, encompassing wages, pensions, and investments. This distinction is important because a household might reach the six-figure threshold through the combined earnings of multiple members, even if no single individual earns that amount independently.

Current National Statistics

U.S. Census Bureau data indicates that approximately 38.9% to 40.8% of households earned $100,000 or more in 2023. Over 54 million households achieved this income level. These figures typically represent pre-tax income.

For individual earners, the percentage reaching six figures is lower. In 2024, the 75th percentile for individuals working 40 or more hours per week was $100,500. This indicates that about 25% of full-time workers earn a six-figure income or more.

Factors Influencing Six-Figure Earnings

Several factors influence an individual’s or household’s likelihood of achieving a six-figure income. Understanding these correlations helps to illustrate the broader dynamics of income generation.

Education plays a significant role in earning potential. Individuals with higher educational attainment generally command greater earnings. For instance, in 2022, median earnings for those with a master’s or higher degree were 20% greater than for those holding only a bachelor’s degree. Similarly, individuals with a bachelor’s degree earned 59% more than those with only a high school diploma.

Income also tends to increase with age and professional experience. Earnings often rise steadily through an individual’s career, typically peaking between the ages of 45 and 54, as professionals gain expertise and assume more senior roles. The most notable jump in income often occurs early in a career, specifically between the 20-24 and 25-34 age groups, as individuals transition into more established full-time positions.

Certain occupations and industries are more likely to offer six-figure incomes due to specialized skill requirements or high market demand. Industries such as utilities, information technology, mining and logging, and financial activities report higher average annual earnings. Specific professions like medical specialists, including ophthalmologists, physicians, and radiologists, frequently earn in excess of $239,200 annually, while airline pilots also command high salaries, often exceeding $226,600 per year.

Geographic location also impacts earning capacity, largely due to variations in local economies and the cost of living. Major metropolitan areas and regions with robust industries often present more opportunities for higher salaries. For example, some cities like Sammamish, Washington, and Bethesda, Maryland, reported that over 70% of their households earned $100,000 or more in 2023.

Observed disparities in income exist across different demographic groups. Statistically, women generally earn less than men, with an average annual earnings gap of over $11,000 in some recent analyses. Racial and ethnic income differences are also reported, with median household incomes for Asian and White households typically surpassing those of Black and Hispanic households. These income variations reflect complex societal and economic factors.

Broader Income Landscape

Placing the six-figure income into the broader national context reveals its position within the overall distribution of wealth. This perspective helps illustrate how a $100,000 income compares to typical earnings and higher income tiers.

The national median household income in 2023 was approximately $77,700 to $80,610. For individuals, the median income in 2024 (reflecting 2023 earnings) was around $50,200 for all workers and about $59,540 for full-time workers. A six-figure income, therefore, represents earnings significantly above the median for both individuals and households.

Analyzing income percentiles further refines this understanding. For instance, an individual earning $100,500 in 2024 would be at approximately the 75th percentile among full-time workers, meaning they earn more than 75% of their peers. The threshold for being in the top 1% of individual earners was $430,000 in 2024, while for households, it was $631,500.

The United States employs a progressive federal income tax system, featuring seven distinct tax rates. These rates, which include 10%, 12%, 22%, 24%, 32%, 35%, and 37%, apply to different portions of taxable income. A six-figure income of $100,000 would generally fall into the 22% or 24% federal tax bracket for a single filer, depending on deductions and other income.

The purchasing power of a six-figure income can vary based on geographic location due to differences in the cost of living. While $100,000 might provide a comfortable lifestyle in some regions, it may offer less financial flexibility in areas with higher expenses, such as major coastal cities. This variability underscores that a nominal income figure does not solely determine financial well-being.