Income Percentile — Definition and What It Means for Your Income
A ranking showing what percentage of earners make less than a given income level.
Income percentile indicates where a specific income falls relative to the broader population — for example, being in the 75th percentile means 75% of earners make less than that amount, and 25% make more.
Why it matters
Income percentiles provide context for whether a salary is typical, above-average, or exceptional for a given occupation, location, or the population overall.
Example
If a software engineer salary of $162,000 represents the 75th percentile nationally, it means 75% of software engineers earn less than $162,000, and 25% earn more.
Related tools
Related terms
Income Percentile — FAQ
What's the difference between median and percentile?
Median is specifically the 50th percentile — the midpoint. Percentiles more broadly describe any point in the distribution, like the 25th or 90th percentile.