You’ve likely heard the term “six-figure salary,” and while it sounds substantial, you’re probably not completely sure what a term like that even means.
Well, in short, a 6-figure salary is a salary with six (6) digits in its written, numerical form.
For example, anything between $100,000 and $999,999 would be considered six figures.
Jobs that can become six figures include pilot, veterinarian, lawyer, human resource manager, dentist, and chemical engineer.
What is a Six-Figure Salary?
When we say that someone has a six-figure salary, it means that the person’s annual earnings is somewhere between $100,000 and $999,999.
There is an incredibly large range when we’re talking about what a six-figure salary looks like, since earning $100,000 a year is going to look a lot different than earning closer to the maximum threshold of $999,999 per year.
The six-figure salary is broken into three ranges: low, mid, and high. A low six-figure salary is $100,000 to $400,000. Mid-range is $400,000 to $700,000, and high-range is $700,000 to $999,999.
A six-figure salary is different from a six-figure income.
A six-figure salary is only the earnings that are received through employment, while a six-figure income is the total amount of money that an individual receives from all income sources. This includes employment, investment, insurance etc.
6-Figure Salary Jobs
As of 2020, only 30.7% of Americans have six-figure salary jobs.
These jobs typically require specialized training, education, determination, and hard work.
In addition, it can take several years for six-figure jobs to translate to substantial income.
Lawyers in the United States make roughly $126,000 per year, according to a 2020 report from the U.S Bureau of Labor Statistics.
This salary is the reward for earning a law degree and passing the bar exam.
Human resource managers play an important role in the development and success of companies — that’s why they are found in nearly every sector of the working world.
They earn a median salary of roughly $126,000.
Commercial pilots are paid well for traveling the world. In fact, the average median salary for a commercial pilot is roughly $134,000 as of 2021.
Veterinarians are considered six-figure earners, too. After completing a doctoral degree, they start to earn an impressive income.
Their average income per year was just over $100,000 in 2021.
Working with hazardous and toxic chemicals should -and does- earn chemical engineers a pretty penny. In 2021, they were reportedly earning, on average, $105,000.
Dentists earn a mid-range six-figure income. Per year, they average $163,000.
|Job||Per Month||Per Week|
|Human Resource manager||$10,500||$2,423|
On top of these figures are taxes, and depending on where in the United States you live, your taxes will vary. In general, though, the more money you make, the more taxes you pay.
For example, if you live in Kila, MT, and you earn a salary of $105,000 per year, you will pay roughly $30,000 in income taxes.
This estimate doesn’t take into consideration any other taxes you may have, such as fuel or property taxes. After the income tax deduction, you are left with a salary of $75,000.
As another example, let’s say you live in Nantucket, MA and earn $170,000 per year. You will pay $51,000 in income tax. Again, this estimate doesn’t include other miscellaneous taxes.
Deduct your income taxes, and you are left with an income of $119,000 per year.
How common is a six-figure salary?
While it isn’t as rare as it used to be, earning a six-figure salary still isn’t the norm in most countries around the world. This, of course, includes both the US and Canada. Most people that you deal with on a day-to-day basis won’t be earning upwards of $100,000 per year, especially once taxes have been factored in.
Does earning 6 figures make you wealthy?
It can be easy to assume that earning a six-figure salary automatically makes you wealthy. In truth, this is a fair assumption since on paper the answer to this question would be an obvious “yes”.
However, those with high salaries also pay more taxes. In addition, those same six-figure earners may also have a lot of debt related to their career including student loans.
Is a six-figure salary good?
Assuming that you’ve taken into consideration the debt and taxes that are associated with earning six figures, the answer is yes — a six figure salary is quite good. Six-figure salaries tend to come with benefits such as health, dental, and optical coverage as well as good insurance and job stability.
How much is a seven-figure salary?
A seven-figure salary is any amount between $1,000,000 and $9,999,999.