$35,000 in 2020 is equivalent in purchasing power to about $43,812.40 today, an increase of $8,812.40 over 5 years.
The dollar had an average inflation rate of 4.59% per year between 2020 and today, producing a cumulative price increase of 25.18%.
If you remove the top 1% of earners, the average income in the U.S. drops significantly. This is why economists and organizations like the U.S. Census Bureau often prefer using the median income, which better reflects what a typical American earns. While it is difficult to calculate the exact figure, here are estimates based on analyses and reported data.
Estimate based on household data (2024 figures)
Based on 2024 data, the average household income for the bottom 99% is roughly $83,000 to $84,000.
Average income (all households): $121,000.
Median income: $83,730.
Income threshold for the top 1%: Over $416,000 in West Virginia to over $1,056,996 in Connecticut, with a national average of $731,492.
The fact that the median and the average for the bottom 99% are almost identical demonstrates that the high average for all households ($121,000) is almost entirely due to the extreme wealth of the top 1%.
Using 2024 data, the average personal income for the bottom 99% is approximately $45,000 to $46,000, based on the median personal income figures.
Average personal income (all earners): $67,080.
Median personal income: $45,140.
The effect of excluding the highest earners is most starkly illustrated by a simplified analysis of the top 1,000 earners. One social media analysis in May 2025, for example, highlighted a hypothetical where the average U.S. income drops from $74,500 to $35,500 simply by excluding the top 1,000 wealthiest earners. While simplified, it effectively shows how a small number of people can drastically skew the average.