Life is expensive in San Francisco. Arguably the current hub of innovation in America, some of the richest companies in the world call San Francisco home. These companies have brought high-paid engineers and wealthy executives to the area, driving up the cost of living in the City by the Bay. Although San Francisco’s median income is above the national average, it doesn’t necessarily make up for the higher cost of living there.

What Is the Average Salary in San Francisco?

The median income in San Francisco is $ 96,265 for households and $ 74,841 for individuals, according to data from the U.S. Census Bureau’s 2013-2017 American Community Survey 5-Year Estimates. These figures represent the gross income, before taxes and other deductions.

Median income measures the income in the middle of the pack. In other words, half of all earners make above the median income and half of all earners make below it. When the Census measures household income, it includes everyone who lives in a single housing unit, which can range from a frat house to family home. Economists measure income like this, in part, because households share living expenses.

Another way to break it down is by looking at mean income, which includes everyone age 16 and older with earnings. In San Francisco, the mean income for households is $ 137,761. For individuals, it’s $ 103,124. Mean income is useful because it incorporates all data. In a population of 99 baristas and one billionaire, the mean would let us know about that outsized income. On the flip side, it would make everyone look wealthier than they actually are because it does not correct for extreme data like median income does.

A third way to consider salary in San Francisco is per capita income. In San Francisco, the per capita income is $ 59,508. This is the mean income for all persons over the age of 16 who are living in the area. It’s much lower than the other figures because it also includes non-earners