For the first time in four years, American workers’ paychecks got a little fatter last year.
The median U.S. household income before taxes increased 4% from 2022 to 2023, rising from $77,540 to $80,610, according to the latest household income data from the U.S. Census Bureau.
Meanwhile, the median post-tax household income rose 3.7% from 2022 to 2023, increasing from $66,800 to $69,240.
This marks the first time since 2019 that U.S. households saw their income grow by an amount that’s considered statistically significant.
How does your earnings compare? Here is a breakdown of income by age group.
About the numbers
The Census Bureau defines pre-tax income as gross income minus income-related expenses.
Post-tax income is defined as income after federal and state taxes and credits; payroll (FICA) taxes; and temporary cash payments issued by tax agencies, such as rebates or stimulus payments.
Households led by someone age 15 to 24
The median pre-tax income for this type of household as of:
- 2022: $54,540
- 2023: $54,930 (an increase of 0.7%)
The median post-tax income for this type of household as of:
- 2022: $48,380
- 2023: $48,680 (an increase of 0.6%)
This group — which is mostly made up of Gen Zers — is just getting started in adult life. So it’s not exactly surprising that households led by someone in this age cohort saw the smallest increase in both pre-tax and post-tax household income in 2023.
Households led by someone age 25 to 34
The median pre-tax income for this type of household as of:
- 2022: $83,420
- 2023: $85,780 (an increase of 2.8%)
The median post-tax income for this type of household as of:
- 2022: $69,620
- 2023: $71,570 (an increase of 2.8%)
This group is mostly made up of millennials. Although their income is increasing, people in this age group don’t necessarily put money first, as we learned in “35% of Millennials Would Take a Pay Cut for Remote Work.”
Households led by someone age 35 to 44
The median pre-tax income for this type of household as of:
- 2022: $100,500
- 2023: $101,300 (an increase of 0.8%)
The median post-tax income for this type of household as of:
- 2022: $83,800
- 2023: $84,560 (an increase of 0.9%)
Older millennials are moving into the heart of their career. However, they saw only a relatively small increase in their income in 2023.
Households led by someone age 45 to 54
The median pre-tax income for this type of household as of:
- 2022: $105,600
- 2023: $110,700 (an increase of 4.9%)
The median post-tax income for this type of household as of:
- 2022: $87,280
- 2023: $91,330 (an increase of 4.6%)
These are the years when job responsibilities and income really jump, and that fact is evident in the numbers for these Gen Xers. Households led by someone in this age group had the highest pre-tax and post-tax household income in 2023.
Households led by someone age 55 to 64
The median pre-tax income for this type of household as of:
- 2022: $84,470
- 2023: $90,640 (an increase of 7.3%)
The median post-tax income for this type of household as of:
- 2022: $70,570
- 2023: $75,380 (an increase of 6.8%)
Although workers who are this age don’t make the most money overall, households led by someone in this age group saw the largest increase in both pre-tax and post-tax household income in 2023.
Households led by someone age 65 or older
The median pre-tax income for this type of household as of:
- 2022: $52,290
- 2023: $54,710 (an increase of 4.6%)
The median post-tax income for this type of household as of:
- 2022: $49,510
- 2023: $51,400 (an increase of 3.8%)
Income naturally starts to drop for the oldest workers. Many have relinquished work-related responsibilities or are in “encore” job situations where they might work part time.
Still, many households led by someone 65 or older saw a nice increase in their income in 2023. If you are not quite ready to sit at home all day, discover some potential work options in “20 Great Part-Time Jobs for Retirees.”
