For the first time in four years, wages for American workers rose slightly last year.
US household income before taxes increased 4% from 2022 to 2023, from $77,540 to $80,610, according to the latest household income data from the US Census Bureau.
Meanwhile, the median after-tax household income rose 3.7% from 2022 to 2023, rising from $66,800 to $69,240.
This is the first time since 2019 that US households have seen their income grow by a rate considered statistically significant.
How does your income compare? Here is a breakdown of income by age group.
About the numbers
The Census Bureau defines pre-tax income as total income minus income-related expenses.
After-tax income is defined as income after federal and state taxes and credits; payroll taxes (FICA); and temporary cash payments issued by tax authorities, such as rebates or incentive payments.
Households headed by a person aged 15 to 24
The pre-tax income for this type of home is from:
- 2022Price: $54,540
- 2023: $54,930 (up 0.7%)
The median after-tax income for this type of household is from:
- 2022Price: $48,380
- 2023$48,680 (up 0.6%)
This group – made up mostly of Gen Zers – is just starting out in adult life. So it’s not really surprising that households headed by someone in this age group saw the smallest increase in both pre-tax and after-tax household income in 2023.
Households headed by a person aged 25 to 34
The pre-tax income for this type of home is from:
- 2022Price: $83,420
- 2023: $85,780 (2.8% increase)
The median after-tax income for this type of household is from:
- 2022Price: $69,620
- 2023: $71,570 (up 2.8%)
This group has been built up over thousands of years. Although their income is increasing, people in this age group are not putting money first, as we learned in “35% of Millennials Would Take A Pay Cut for Remote Work.”
Households headed by a person aged 35 to 44
The pre-tax income for this type of home is from:
- 2022: $100,500
- 2023: $101,300 (0.8% increase)
Producer posted-taxable income for this type of home from:
- 2022Price: $83,800
- 2023: $84,560 (up 0.9%)
Millennials are getting to the heart of their job. However, they saw only a small increase in their income in 2023.
Households headed by a person aged 45 to 54
The pre-tax income for this type of home is from:
- 2022Price: $105,600
- 2023: $110,700 (up 4.9%)
Producer posted-taxable income for this type of home from:
- 2022Price: $87,280
- 2023$91,330 (up 4.6%)
This is the age when work responsibilities and incomes really jump, and that fact is reflected in the numbers of these Gen Xers. Single-headed households in this age group had the highest pre-tax and after-tax household incomes in 2023.
Households headed by a person aged 55 to 64
The pre-tax income for this type of home is from:
- 2022Price: $84,470
- 2023: $90,640 (7.3% increase)
The median after-tax income for this type of household is from:
- 2022Price: $70,570
- 2023$75,380 (up 6.8%)
Although workers in this age group do not usually make much money, households are headed by a person in this age group the largest increase in both pre-tax and post-tax income in 2023.
Households headed by a person age 65 or older
The pre-tax income for this type of home is from:
- 2022Price: $52,290
- 2023: $54,710 (up 4.6%)
The median after-tax income for this type of household is from:
- 2022Price: $49,510
- 2023: $51,400 (3.8% increase)
Income naturally begins to decline for older workers. Many have given up work-related responsibilities or are in “encore” career situations where they may work part-time.
However, most households headed by someone age 65 or older saw a positive increase in their income by 2023. If you’re not ready to stay at home all day, find out about other possible career options in “20 Great Part-time Jobs for Retirees.”
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