What percentage of the US makes 100K?
Why So Many People With Six-Figure Salaries Are Living Paycheck-to-Paycheck
O nce coveted six-figure salaries are struggling to keep up with today’s cost of living, with more than half of people who are making six-figures still living paycheck-to-paycheck, reflected in a new study.
As rampant inflation pervades the economy, with it sitting at 6% in February, the study done by the financial advice company, SmartAsset, acknowledges that even high-earners are struggling to build wealth, especially in pricier cities. In December 2022, 51% of people who earn more than $100,000 reported living paycheck to paycheck, which is 7% more than the previous year, according to a survey from financial insight and advising companies PYMNTS and Lending Club.
In SmartAsset’s new study, researchers calculated income tax on $100,000—taking it into account at the federal, state and local level—to find earners’ real take-home pay in 76 of the largest cities around the U.S. Using 2022 data on cost of living prices in these cities from the Council for Community and Economic Research, SmartAsset analyzed how much purchasing power earners truly have. Cost of living indexes include average prices of housing, groceries, utilities, transportation and other goods and services.
The study found the worst places to live for people who earn $100,000. After taxes and adjusted for cost of living, $100,000 amounts to just $35,791 in New York, New York, $36,026 in Honolulu, Hawaii, $36,445 in San Francisco, California, $44,307 in Washington D.C. and $44,623 in Long Beach and Los Angeles, California.
Using the same metrics, the best cities to live in for people who earn $100,000 are Memphis, Tennessee, El Paso, Texas and Oklahoma City, Oklahoma. In Memphis, thanks to its cost of living, which is 14% lower than the national average, $100,000 is worth $86,444. Seven cities where six figures goes the furthest were in Texas, credited to low costs of living combined with no state income tax.
In the U.S. 18% of individuals earn more than $100,000, according to Zippia, a career advising company, and like the cost of living, income varies greatly between cities and states.
Zippia’s data also shows that 56% of Americans believe that earning $100,000 per year would make them rich, but Zippia notes that a $100,000 salary is generally considered upper-middle class today, rather than rich, and can even be lower-middle class in some cities. The median U.S. salary in 2022 was $44,225, according to Zippia, which raises major concerns if Americans earning more than double that amount are struggling.
SmartAsset shares some advice for six-figure earners, such as suggesting that they max out their retirement accounts. Contributing the highest possible amount to retirement accounts can help reduce a contributor’s tax bill for that year, potentially even dropping them into a lower tax bracket. They also recommend reviewing a city’s track record on its cost of living before moving there, along with consulting a professional financial adviser to be as tax efficient as possible.
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Nearly half of Americans making $100K are living paycheck to paycheck, survey finds
A new report has found more than half of Americans are living paycheck to paycheck.
The study conducted by LendingClub Corporation in partnership with PYMNTS.com found that Americans across all income brackets are increasingly living paycheck to paycheck, including those with six-figure incomes.
Sixty-four percent of Americans are living paycheck to paycheck as of January 2022, the study found — a 3 percent increase from December 2021 and a 12 percent increase from April 2021.
The survey found that among those earning more than 100,000, 48 percent said they were living paycheck to paycheck, an increase from 42 percent in December 2021. The number has increased since May 2021 when 39 percent of six-figure earners said the same.
In fact, the number of those earning between $50,000 and $100,000 who are living paycheck to paycheck is rising.
In May 2021, 53 percent of earners in this financial bracket reported living paycheck to paycheck, compared to 67 percent in January 2022.
However, the realities of those living paycheck to paycheck also differ, with the data broken down into two categories: those living paycheck to paycheck comfortably and those living paycheck to paycheck with difficulty.
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According to the study, those who were living paycheck to paycheck but were able to pay their bills was 42 percent in January 2022, compared to 22 percent who struggled to pay their monthly bills.
But the disparity in annual income did come into play when evaluating the differences in savings among both those struggling to pay bills and those who were not. People earning more than $100,000 and living paycheck to paycheck who reported difficulties paying their bills had an average savings of $11,168, compared to $12,881 in those who weren’t struggling with bills.
Yet, those earning $50,000 to $100,000 per year and living paycheck to paycheck with difficulties had an average savings of $2,360, compared to $7,273 for those who didn’t have issues. In stark contrast, people earning less than $50,000 per year living paycheck to paycheck who struggled to pay bills only reported an average savings of $788, compared to $4,369 for those who weren’t having issues with bills.
In the case of an emergency expense of $400 or more, more than 50 percent of people earning $50,000 to $100,000 per year and more than $100,000 per year, respectively, would be able to pay it using savings, compared to only 38.5 percent of those earning less than $50,000.
Among those earning more than $100,000, 23 percent living paycheck to paycheck are struggling to pay their bills and would not be able to pay a $400 emergency expense. Meanwhile, 38 percent of those earning between $50,000 and $100,000 said the same.
“With inflation up 7.5 percent in the last 12 months, consumers of all income brackets are struggling to find a way to make ends meet,” Anuj Nayar, financial health officer at LendingClub, said in a press release . “Every day we see Americans relying on credit cards as a crutch, which is a horrible way to borrow money if you don’t intend to pay off the entire balance at the end of every month.”
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How Many People Make Over $100k A Year?
Key Statistics About How Many People Make Over 100k A Year
- 30.7% of U.S. households make over $100k a year.
- Making $100k a year puts you in the top 24% of theUS population.
- 217% more men make $100k per year compared to women.
- 6% of women earn more than $100k per year.
- 13% of men make more than $100k per year.
- 48% of Americans making $100k+ a year are living paycheck to paycheck.
- 12% of people making $100k a year are struggling to pay their bills.
- $100k a year is 192% of the average American salary of $52,000.
- $100k a year is 148% of the average American household income of $57,500.
- 35% of Whitehouseholds make over $100k a year.
- 30% of White men make over $100k a year.
- 17% of White women make over $100k a year.
- 188% more White men make $100k per year than Black men.
- 188% more White women make $100k per year than Black women.
- 19.6% of Black households make over $100k a year.
- 16% of Black men make over $100k a year.
- 11% of Black women make over $100k a year.
- 48% of Asian households make over $100k a year.
- 24% of Hispanic households make over $100k a year.
How Many People Make Over 100k?
43.7M people make over $100k in America.
The percentage of people making over $100k a year is 33.6%.
This data is from the U.S. Census Bureau on the annual income in the U.S.
They surveyed the individual income for U.S. households.
There were 129.9M respondents to this BLS survey.
These “respondents” also were individuals that represented a household.
|Income Brackets||% of Population|
|$15k — $25k||8.7%|
|$25k — $35k||8.1%|
|$35k — $50k||11.6%|
|$50k — $75k||16.5%|
|$75k — $100k||12.2%|
|$100k — $150k||15.3%|
|$150k — $200k||8.0%|
Percentage Of Individuals Making Over 100k
The percentage of individuals making over $100k a year is 33.6%.
43.7M individuals make over $100k in America.
19.8M individuals have a six figure income, making $100k-$150k.
What Percentage Of American Households Make Over 100k
47.3% of American households make over $100k per year.
The U.S. Census Bureau surveyed 129.9M households.
The only households that averaged more than $100k were “married couple” households.
The average household income for the “married couple” American household was $101,517.
This made up 61.5M households, which was 47.3% of American households over $100k.
Average Age To Make Six Figures
The average age to make six figures is between 45-54 years old.
This is the highest income age range according to the Bureau of Labor Statistics (BLS).
What Percentage Of Americans Make Over 100k
34.4% of Americans make over $100k a year.
This chart shows how many people make over $100k a year for the past three years.
Making $100k a year puts a household with 4 members in the middle-class bracket.
Percentage Of Individuals Making Over $100k 2020
33.6% of individuals made over $100k in 2020.
That means 113.9M individuals made over $100k in 2020.
Percentage Of Individuals Making Over $100k 2021
33.8% of individuals made over $100k in 2021.
That means 110.7M individuals made over $100k in 2021.
Percentage Of Individuals Making Over $100k 2022
34.4% of individuals made over $100k in 2022.
That means 114.3M individuals made over $100k in 2022.
Note that this data comes from IBIS World’s data on how many people make over $100k.
And we are comparing that to the US Population each year, too.
How Many Men Make 6 Figures?
13.1M men make six figures in the U.S.
What Percentage Of Men Make 6 Figures?
13% of men make 6 figures ($100k) or more per year.
13.1M men make 6 figures ($100k or more) in the U.S.
There are 100.9M adult (18+ year olds) males in the U.S.
Percentage Of Black Males Making Over $100k
18% of Black males make over $100k a year, according to Pew Research.
Ethnicity plays a factor on a man’s net worth.
The Black male demographic is 53% as likely to earn $100k compared to White males.
Is 100k A Year Good?
The $100k-a-year income bracket is increasingly harder to live on in the U.S.
- $61,417 for men
- $50,982 for women
Men are higher income earners with an average wage that’s 20% higher than women.
So, looking at the income inequality, making $100k in yearly income puts:
- men at 63% higher than the average income
- women at 96% higher than the average income
The average cost of living in the U.S. is:
- $39,846 if you’re single
- $60,673 if you’re supporting two adults
Let’s look at some average expenses:
- The average annual cost of real estate for a family is $18,390 per year.
- The average credit card debt is $5,221.
- The average car payment is $667.
- The average cost of child care is $10,174 a year.
Due to the pandemic, more people are able to work remotely.
This means that people can move out of very expensive cities like New York.
And move into lower cost of living areas to make $100k a year good for them.