Average salary by age in 2023 (2023)

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Updated: May 23, 2023 at 12:07 p.m

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• Median income for Americans peaks between ages 45 and 54.
• The age groups with the biggest wage increases from one age group to the next were between 20 and 24 and 25 and 34, meaning that most people made the biggest jumps in their careers in this age group.
• Young workers aged 16 to 19 earn on average 49.92% less than older workers.

The data highlight a sharp increase in the wages of workers who move from the age group of 20 to 24 years to the age group of 25 to 34 years. The big jumps in earnings suggest that the most impactful career progression tends to occur during this period, driven by factors such as skill development, education and work experience.

There is also a significant pay gap between younger and older earners in the 16-19 age group. On average, these younger workers earned 49.92% less, which can be attributed to factors such as limited work experience, a narrower range of skills and entry-level positions. This information will be invaluable to policy makers, educators and employers as it highlights the importance of skills development and work experience in closing the income gap. As these young adults mature, expand their skills, and gain work experience, their earning potential will increase significantly, ultimately driving overall wage growth throughout their careers.

• New Jersey, Massachusetts and Maryland were the states with the largest increases in income from one age group to the next.
• New Hampshire is the state with the highest median income for young adults at $52,926.
• New Jersey is the state with the largest pay gap between younger and older workers.

IncomeByZipcode.com2The combined study finds interesting regional differences in income growth among age groups in the United States. New Jersey, Massachusetts and Maryland had the most dramatic gains across age groups. This highlights the unique economic dynamics of these states and means that professionals in these fields are likely to experience larger salary increases at different stages of their careers.

New Hampshire is the state with the highest median income for young adults at $52,926. The data highlights favorable economic conditions for young professionals in New Hampshire, making it an ideal destination for ambitious individuals looking to optimize their early career earnings.

In contrast, New Jersey had the largest wage gap between younger and older workers, highlighting the importance of understanding regional differences when assessing career opportunities and earning potential across the United States.

• The median salary of those over 25 with a bachelor's degree is 76.24% higher than that of those over 25 with a high school diploma.
• The average salary for those over 25 with an advanced degree was 70.64% higher than that with a bachelor's degree and 143.54% higher than that with an associate's degree.

National Center for Education Statistics3Interesting data are presented that show how the level of education affects the earning potential. The average salary for those 25 and older with a bachelor's degree is 76.24% higher than those with only a high school diploma. This stark difference highlights the value of obtaining a higher education and the long-term benefits it can bring in terms of career advancement and financial stability.

The data shows that the average salary for those over the age of 25 with a college degree is 70.64% higher than that with a bachelor's degree and a whopping 143.54% higher than that with an associate's degree. These findings demonstrate the profound impact of higher education on wage prospects and highlight the potential returns on investment in a graduate or professional degree.

• The biggest difference in wages between the sexes is in the age group of 45 to 54 years.
• The smallest difference in wages between the sexes is in the age group of 16 to 19 years.

According to the American Bureau of Labor Statistics1In the 45-54 age group, men's average annual salary of $72,228 was significantly higher than women's average annual salary of $57,096. That equates to a pay gap of $15,132, or 26.5 percent, for men.

The wage gap between men and women is narrowest in the 16-19 age group, with an average annual salary of $32,188 for men and $31,096 for women. This corresponds to a difference of $1,092 or a 3.5 percent wage difference in favor of men.

Insights from highlighted datagender pay gapDifferences between age groups are not uniform, but widen as individuals advance in career and income levels. This pattern suggests that a complex interplay of factors such as career choice, career trajectory, and work-life balance may have a more pronounced effect on women in mid-career.

Visit our center for more informationStatistics page.

1. Institute for Labor Statistics
2. Indkomstbyzipcode.com
3. National Center for Education Statistics