The infamous “6-figures” is a salary term that has been widely popularized in modern culture to express yearly earnings between $100,000 and up to $999,999. For working professionals, 6-figures are considered a marker for a well-paid job or career. Understanding how six figures break down by different earning levels can help you conceptualize your earning potential. Another important factor to consider for 6-figure earnings is how the taxes change at different levels. Let’s take a look at some of the data points below to get a better idea of how these levels work.
How Much Is 6 Figures? – Earnings Table Breakdown
The table below breaks down different 6-figure earning ranges by the following criteria:
- 6 figures per day
- 6 figures per week
- 6 figures per month
When you break down the big 6-figure number into smaller increments, you can clearly see that the daily, weekly, and monthly earnings are modest in the lower ranges.
How Much is 6 Figures An Hour?
The table below breaks down 6-figure earnings ranges by the following criteria:
- 6 figures per hour
- 6 figures per minute
- 6 figures per second
Six Figures and Taxes
This table shows us the net take-home pay after taxes for different 6-figure earnings levels. You can also see the total taxes you would have paid at each earning range.
These figures only take into account federal income taxes rates, no state tax rates are included. The numbers are based on the 2021 federal income tax brackets.
These figures will vary based on your filing status, deductions, 401(k) contributions, and any health insurance premiums not covered by your employer. In addition to this, your tax liability will be different if you are self-employed. These figures are based on 365 days in a single calendar year for W2 employees.
How to Reduce Your Taxes With a 6-figure Salary
As you can see, the more money you make the more you pay in taxes. If you want to reduce your tax liability you have some options depending on the type of retirement plans offered by your employer. If your employer offers a standard 401(k) retirement plan you can reduce your tax liability by making contributions to your 401(k) plan.
For example, if you make $100,000 per year and contribute 10% of your pay to your 401(k), you would only pay taxes on $90,000, not on the $100,000. Contributions to a 401(k) are pre-tax and reduce your tax liability. The max contribution limit for a 401(k) plan as of 2022 is $20,500.
Another way to reduce your tax liability is to make contributions to an HSA if your employer offers one. For 2022, the HAS contribution limit is $3,650 for single coverage and up to $7,300 for family coverage. An HSA plan is often misunderstood by most employees. It can be a great way to save additional money and reduce your tax liability.
529 Plan Contributions
A 529 plan is a college savings plan that works in a similar fashion to a 401(k). The money in the plan grows tax-deferred and can be withdrawn tax-free if the money is used to pay for a college education. Contributions in a 529 plan are not tax-deductible, however, this will depend on the state you live in. In most cases, you will at least receive some sort of tax credit for making contributions.
Is 6 Figures Considered Rich?
People who have earnings in the high six-figure range can be considered rich if they are modest with their spending and invest their money into income-producing assets. As you earn into the multiple six figures, your taxes will naturally go up as you move into a higher tax bracket.
However, there are plenty of people who earn multiple 6-figures that are careless with their money, and live beyond their means.
Six-Figure Jobs That Don’t Require a College Degree
There are plenty of jobs that have a 6-figure earning potential that doesn’t require you to get a college degree. The simple truth is that college isn’t for everyone. However, there are still options for people to earn six figures without a college degree. Some of these include:
- Construction Manager
- Nuclear Power Reactor Operator
- Truck Driver
- Radiation Therapist
- Real Estate Agent/Broker
- Air traffic controller
- Tattoo Artist
Recommended Reading: 10 Highest Paying Jobs in Real Estate Investment Trusts
These professions are in high demand and require vocational training along with an apprenticeship. Just because these jobs don’t require a college degree, doesn’t mean they are easy to get. They require you to develop hard skills and have strong attention to detail.
Six-Figure Jobs That Require a College Degree
On the contrary, there are certain jobs and career paths that require a college degree in order to hit the 6-figure earning mark. Most of these will require a minimum of 4 years along with a postgraduate degree.
- Business Analyst
- Management Executive
- Physical Therapist
- Certified Public Accountant
With the current state and cost of a college degree in the United States, it’s difficult not to mention the burden of student loan debt. Most of these professions will set you back a minimum of $100,000 in debt. you do earn a six-figure salary from these professions, it’s hard to ignore the amount of debt you have in.