![]() ![]() Since the median is significantly below the average, it tells us that there are more households with below-average household income than above-average, and that the average is distorted by a small percentage of high-income households. And this median is based on total income, not AGI, which accounts for a few deductions, so the difference is even bigger than this implies. The median household income in 2014 was $53,719, which means that half of American households make less than this amount, and half make more. In general, the more you can narrow down the group, the more meaningful the average household income is.įor this reason, here are a few more income averages and statistics, which may be more useful to you for comparison purposes.ġ. A few more averagesĪs I've mentioned, grouping all Americans into one big basket to find the average isn't always the most useful way to compare yourself. To be perfectly clear, this refers to the percent of people whose household income is less than the threshold.ĭata source: IRS Statistics of Income, 2014. The IRS breaks up tax return data into income groups, so here's the percentile rank of each income threshold. Income distributionīecause very few people reading this, if any, will earn exactly the average income, here's a better way to determine where you stand. AGI excludes items such as deductible retirement contributions, student loan interest, and tuition and fees and is considered to be a good indicator of a household's actual pre-tax income. With that in mind, here's the average American household income by tax filing status:ĭata source: IRS Statistics of Income, 2014.Īlso note that the data in this and other tables in this article are adjusted gross income (AGI) figures, which is gross household income, minus a few specific adjustments. For example, a single-person household earning $65,751 could have a completely different financial situation than a family of five with the same income. However, the average can vary significantly depending on your household's composition. The average American household incomeĪs I mentioned, the overall average household income was $65,751 in 2014. Depending on your family situation and where you live, average household income can vary dramatically. However, this doesn't tell the whole story. Census Bureau, the average household income was $73,298 in 2014, the latest year for which complete data is available. Watch Video: A million bucks doesn't go as far as you'd thinkĪccording to the U.S. ![]()
0 Comments
Leave a Reply. |
AuthorWrite something about yourself. No need to be fancy, just an overview. ArchivesCategories |