Los Angeles is a flourishing center on the US West Coast thanks to its diversified mix of sectors, bustling arts scene, and well-known cultural variety. For those wishing to establish careers in this vibrant metropolis, it is essential to comprehend the economic facts of living in Los Angeles. The average income in Los Angeles will be discussed in this article, along with how it relates to the city’s minimum wage and what factors affect your pay. We will provide valuable insights and practical advice for those considering a move or already residing in this dynamic metropolis.
What is Average Income in Los Angeles?
For a single person wanting to live alone in LA City, the average income in Los Angeles is $87,488/year, this is equivalent of $1,822 a week or $7,291 a month. The average salary in Los Angeles, CA is generally above the national average. After taxes, the average salary in Los Angeles comes down to $60,850 a year. California has nine state income tax rates, ranging from 1% to 12.3%. Your tax rate and bracket depend on your income and filing status. Now that we have an overview of the average salary in Los Angeles, let’s break down and analyze the average income in Los Angeles based on various metrics.
QUOTE – The average salary in Los Angeles, CA will vary depending on your occupation, experience, and many other factors. The most popular occupations in Los Angeles, CA are Software Engineer, Project Manager, and Operations Manager, which pay between $55k and $160k per year. The most popular employers in Los Angeles, CA are Northrop Grumman Corporation, University of Southern California (USC), and The Walt Disney Company.
Median Household Income in Los Angeles
The income level of a household in a given demographic area where half of the households earn more and half earn less. It includes income from many sources, such as social security, interest, dividends, and earnings for each household member. For per capita income, it is income averaged for everyone 16 or older living in the city. This makes it reliably much lower than all other figures because it includes non-earners as well. For Los Angeles City, this number is $46,270.
Median Salary in Los Angeles
The median salary in Los Angeles is $56,769 a year, or $4,730 monthly and in the County of LA, the mumber is $57,247 annually, or $4,770 monthly. Median salary in Los Angeles offers a more accurate picture of what LA residents make because they aren’t as much impacted by the highest or lowest number as the average salary in Los Angeles.
The main difference between median household income and median salary is that median household income includes income from many sources, while median salary only includes wages, salaries, and self-employment income.
Average Salary in Los Angeles by Jobs
Some of the top paying kinds of jobs in Los Angeles are Pediatric Dermatologist, Preventive Medicine Physician, and Transplant Surgeon. Here are some jobs in Los Angeles and their average salary in LA.
| Job | 10th Percentile Salary | Median Salary | Average Salary | 90th Percentile Salary |
|---|---|---|---|---|
| Vice President | $60,000 | $163,350 | $159,891 | $260,000 |
| Data Scientist | $88,839 | $135,000 | $137,942 | $186,000 |
| Software Engineer | $75,000 | $130,000 | $130,883 | $192,134 |
| Product Manager | $78,360 | $130,000 | $130,215 | $185,000 |
| Controller | $70,000 | $125,000 | $126,656 | $180,000 |
| Director | $52,500 | $112,500 | $115,204 | $190,000 |
| Attorney | $50,000 | $105,000 | $108,854 | $185,000 |
| Project Manager | $59,845 | $86,000 | $90,257 | $138,000 |
What’s a good salary in Los Angeles?
A good salary in Los Angeles is generally considered to be between $100,000 and $200,000 gross per year. The average rent in Los Angeles is $2,700. This varies by what part of LA you plan on living. Many experts recommend that housing costs should not exceed 30% of your income. Using the 30% rule, you should be using no more than 30% of your gross income on rent. That works out to $8,100. That means you ideally have a yearly salary of $97,200 in Los Angeles after tax.
What influence average income in Los Angeles?
The average salary in Los Angeles, CA is influenced by a multitude of factors from various perspectives. Here are some key factors that can impact average salaries in Los Angeles:
Average Income in Los Angeles by Industry
The type of industry significantly affect average income in Los Angeles, CA. Industries such as entertainment, technology, healthcare, and finance tend to offer higher salaries compared to retail or service sectors. We listed some of the highest-paying jobs that are typically sought after in Los Angeles city:
- Surgeons and Physicians
- Chief Executives
- Software Development Managers
- Dentists
- Lawyers
- Financial Managers
- Marketing Managers
- Pilots
- Architectural and Engineering Managers
- Pharmacists
Average Income in Los Angeles by Occupation
The type of occupation influence your average salary in Los Angeles. Some of the growing occupations in Los Angeles includes software developers, healthcare professionals, data analysts and data scientists, solar photovoltaic installers, physical therapists and occupational therapists, market research analysts, information security analysts, wind turbine service technicians and home health and personal care aides.
Average Income in Los Angeles by Education
The average income in Los Angeles is 17% more than those with a high school diploma if you have an additional certificate or diploma. Employees with a bachelor’s degree earn 24% more than those with a high school diploma. If you have a master’s degree, you might earn 29% more than those with a high school diploma. Higher education attainment is generally associated with higher pay.
Average Income in Los Angeles by Skill Level
The average income in LA is related to skill level. Individuals with advanced degrees or professional certifications often command higher pay in Los Angeles. Highly skilled professionals usually earns more than the average income in LA.
- Entry-level jobs: $34,000—$56,000
- Mid-level jobs: $37,000—$63,000
- Team lead jobs: $38,000—$68,000
- Managerial jobs: $43,000—$78,000
- Directorial jobs: $58,000—$107,000
Average Income in Los Angeles by Age
Age significantly influences your typical earnings in LA. Generally, people with greater years of experience in a specific area earn higher salaries than those with less experience. A Census Bureau survey indicates that Los Angeles reports its peak median household income for residents aged 25 to 44 years, reaching $88,618.
For example, individuals aged 24 and below have an average annual income of $44,205, based on information from the U.S. Census Bureau. Salaries increase to an average of $90,138 annually for employees aged 25 to 44, and $98,785 yearly for those aged 45 to 64. Workers aged 65 and above have an average yearly income of $60,832.
Average Income in Los Angeles by Cost of Living
Similar to other metropolitan areas, such as New York City, the cost of living in Los Angeles, particularly housing expenses, can be considerable, often demanding a significant portion of one’s income to sustain a comfortable lifestyle. The average rent for a studio apartment is about $1,691 per month. If you want to rent comfortable and affordable apartments for rent in Los Angeles, please browse housing listing on uhomes.com. Our professional consultant can help you find housing that saves you money.
Average Income in Los Angeles by Company Size
The size and financial health of a company can impact average salary in Los Angeles. Larger companies or those with higher revenues may have more resources to offer competitive salaries to employees.
Average Income in Los Angeles by Gender
With a 91% gender pay ratio, Los Angeles has the smallest gender pay gap of any metropolis. According to a Payscale research, a woman’s average salary in Los Angeles is the same as men’s. Los Angeles city has closed the controlled gender pay gap, which takes into consideration variables including industry, education, and experience.
Even though Los Angeles has the narrowest gender wage difference in the US, gender inequality is still obvious in a few agencies, such as general services, airports, public works, fire, water and power, and police.
A complex interaction of elements pertaining to industry dynamics, personal qualities, societal trends, and economic conditions shapes the average income in Los Angeles, California.
Final Thoughts on Average Income in LA
The average income in Los Angeles is above the national average wage. At the same time, the high cost of living in LA city and the competitive environment affect the real purchasing power of income. The salary has distinct differences depending on the industry and job. Los Angeles is a hub for art and culture and is celebrated as the entertainment industry capital of the United States. LA stands out as one of the largest and most culturally diverse regions in the Americas and provides many job opportunities for people to explore, you can learn a lot in there and improve yourself to increase your average salary in LA.
FAQ
A good salary in Los Angeles is between $100k and $200k gross per year. Based on the cost of living in Los Angeles, this should come down to a minimum of $76,710 yearly after taxes.
The median household income in Los Angeles is annually. Median household income is calculated similarly to median salary but at a household level.
The personal finance website defined middle class as “those with an annual household income that is two-thirds to double the median income.” In California, the middle-class household income ranges between $ 61,270 to $183,810, a nearly 50% increase from where it stood in 2012 when it was $40,933 to $122,800.
Effective July 1, 2025, the minimum wage in unincorporated L.A. County will be $17.81 per hour.When finding a job in Los Angeles, you can negotiate their salary, and the boss can accept or reject the proposal, as long as they do not fall below the federally mandated amount.
For a single person wanting to live alone in LA City, the average income in Los Angeles is $87,488/year, this is equivalent of $1,822 a week or $7,291 a month. Deducting taxes, the annual average net salary in Los Angeles will decrease a little.
