What Is The Average Salary In Each State Of The USA And Minimum Wages?

The United States is considered a heterogeneous state, which has regions with different socio-economic and cultural attitudes. The local population lives at a fairly high level, as the average Americans receive a stable salary.
What Is The Average Salary In Each State Of The USA And Minimum Wages?

Land of opportunity

The United States is considered a heterogeneous state, which has regions with different socio-economic and cultural attitudes. The local population lives at a fairly high level, as the average Americans receive a stable salary.

Labor migrants from all over the world come to the States to build a good career. Mostly, employers want to see experienced qualified specialists and workers in scarce areas for the local labor market. The average wage for America is considered the norm, but its size depends on various factors. What is the  average salary   in the USA?

US minimum wage

The lowest wage in the States is a very difficult concept. It should be borne in mind that in this state the minimum wage is set at 2 levels - federal and state. In 2021, the federal minimum wage is $7.25/hour. But in the vast majority of states, this amount is an order of magnitude higher. Although there are regions where it is below this mark. For example, in the state of Georgia, the minimum wage is just over $5 an hour.

The highest minimum wages in the following states:

Oregon: $11

The minimum wage here starts at $11/hour. In Portland, the administrative center of this state, they earn up to $ 12.5 per hour. Doctors and programmers receive such money.

Washington: $12

Here, the largest minimum wage of $12/hour is received by postal employees, as well as government employees.

California: $12

In 2021, in California, employees of large companies (from 26 people in the state) are paid a minimum of $12 per hour. Office clerks and junior specialists of IT companies can count on this payment.

New York: $13.5

In New York itself, the minimum wage is $13.5/hour. That kind of money in the Big Apple is paid for work that does not require special qualifications. In Log Island, doctors are paid $12 per hour. In a month, a little more than 2 thousand dollars can come out.

Interactive map: minimum salary per US state

Source data: List of US states by minimum wage (2022)

What is the average salary in America?

Pay in the US does not look like this in most countries. Employees are paid by the hour for any activity. In addition, their salary level is indicated immediately for the year.

The US Bureau of Labor Statistics claims that the official average wage in the United States in 2022 is at the level of $3,620 per month before taxes. However, the average income of women and men differ by almost 20%. If we compare this indicator with the same in 2018, then this figure has increased by $96 per month.

Among ethnic groups, Hispanics earn the least at $2,784 a month, followed by African Americans at $2,948, whites at $3,740, and Asians at $4,628.

Among the age categories, the highest  average salary   was recorded for men aged 45 to 54 in the amount of $4,696 per month. Women aged 16 to 24 receive the least - $2,156, and men aged 16 to 24 - $2,420.

If we analyze professional groups, then top managers and managers occupy the leading positions - 6236 dollars (men) and 4400 dollars (women) monthly.

The  average salary   of specialists without diplomas or specialized training is 1850-2050 dollars per month. However, builders, truckers, or electricians earn an average of $3,500-$4,000 monthly.

Average salary after taxes

Paying taxes is an important component of the functioning of a modern state. The United States is famous for having a progressive taxation scale: the higher the income, the higher the tax rate. The rate also depends on the marital status of taxpayers.

There are three levels of tax payment:

  • 1. Federal. The rate ranges from 10 to 39.6%.
  • 2. Regional. The rate ranges from 0 to 13%.
  • 3. Local. The rate is up to 11.5%.

Individuals pay income tax in forty-three states. Seven states have no income tax at all. The federal income tax has a progressive scale, which consists of seven levels:

  • up to 9,700 dollars / year - 10%;
  • up to 39,475 dollars / year - 12%;
  • up to 84,200 dollars / year - 22%;
  • up to 160,725 dollars / year - 24%;
  • up to 204,100 dollars / year - 32%;
  • up to 510,300 dollars / year - 35%;
  • more than 510,300 dollars / year - 37%.

At the federal level, income tax is 50% of all income, while at the regional level it is 21%, and at the local level it is only 4%. Income tax is paid directly by the employer, so the employee does not have to worry about paying taxes.

As a result, the average American annually pays about 43% of his income to the state budget at all levels. If we take into account that the  average salary   in the United States for 113.5 million inhabitants in 2021 is $ 3,620 per month before taxes, then after taxes a person receives $ 2,064 in his hands.

Average salary by state

In the United States, labor is valued by time, that is, there are no usual rates per month, there are tariffs per hour. Thus, the final amount depends on the hours worked and the hourly rate. That is why there are few people in America who are employed in a permanent job. Specialists enter into contracts with employers for a specific period and combine work in 2 or more places.

The average wage is calculated based on a person's total income for the year, which is confusing for those who want to move and work in the US. After deducting taxes, an American loses up to 30 percent of his earnings.

The  average salary   in different states is very different. Simply put, a salary that is considered good in one state will be low in another. In large metropolitan areas, where life is quite expensive, workers receive much more than in rural areas.

Highest median salaries in America in 2021:

California: $75k

The leader in salaries is San Jose. It is in this town that the world-famous Silicon Valley is located, where the best IT specialists live and work. The  average salary   in California is $75,000/year.

Washington: $65k

In the capital of America, where state structures are well developed, they earn up to $65,000 annually.

Massachusetts: $63k

The famous Harvard University is located in this state. The  average salary   here reaches $63,000/year.

New York: $59k

This is the region of economists and stock exchanges. The  average salary   here reaches $59,000/year.

The average wage in the US has not stopped rising since the 1950s. The only exception was 2014, when it decreased by 3.5%.

Interactive map: Average earnings per US state

Source data: Earnings by place of work: Average Earnings Per Job in 2021

Choose right!

Most immigrants come to conquer America, dreaming of a decent salary and social protection. However, not everyone makes enough effort to reach at least an average level of earnings. The  average salary   in the United States is quite high, so many foreigners are trying by all means to get into the country. It is worth remembering that the most promising areas are medicine, banking and IT. Therefore, carefully study the above data and choose the perfect state for yourself!

Frequently Asked Questions

If I don't have a diploma, what will be my mean salary USA?
The US is a land of opportunity even if you don't have a degree. The average salary of such a specialist is 1850-2050 dollars per month.
What is the minimum USA salary in New York?
In New York, the minimum wage is $13.5 an hour. Such money in New York is paid for work that does not require special qualifications.
How does the average salary and minimum wage vary across different states in the USA, and what factors contribute to these differences?
Average salaries and minimum wages vary based on local economic conditions, cost of living, and industry presence. States with higher living costs typically have higher average salaries and minimum wages. Data can be found through labor statistics websites and economic reports.

Elena Molko
About the author - Elena Molko
Freelancer, author, website creator, and SEO expert, Elena is also a tax specialist. She aims at making quality information available to the most, to help them improve both their personal and professional lives.

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