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CAREER GUIDE / WAGE EVIDENCE

What do salary percentiles actually tell you?

Understand the wage distribution before comparing a salary offer, profession or metro area.

The median is a middle point, not a starting offer

BLS Occupational Employment and Wage Statistics (OEWS) provides estimated wage percentiles for defined occupation codes and metropolitan areas. The median, or 50th percentile, divides the estimated occupation wage distribution in half. It does not mean an employer is currently hiring at that number, and it does not describe only workers with a particular number of years of experience.

The 10th, 25th, 75th and 90th percentiles reveal more about the spread. These points can help you ask better questions about a quoted salary, but they do not determine whether you qualify for a role or where your offer should fall. Location, employer, specialty, hours, experience and non-wage benefits can all matter.

A real example: Software Developers in Austin, TX

The following figures come from the same May 2025 BLS occupational wage series for CBSA 12420. This is the Austin-Round Rock-San Marcos, TX metropolitan statistical area—not just Austin city limits. Values are annual nominal estimates; these are not price-adjusted and have not been combined with separate occupations or survey populations.

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BLS annual wage statistic / Observed Austin metro estimate
BLS annual wage statisticObserved Austin metro estimateWhat it describes
10th percentile$96,110About 10% of estimated wage observations lie below this value
25th percentile$104,000Lower quartile of the estimated distribution
50th percentile (median)$134,120Middle of the estimated distribution
75th percentile$168,730Upper quartile of the estimated distribution
90th percentile$209,890About 90% of estimated wage observations lie below this value

Example is generated directly from the pinned source snapshot at build time. If any percentile is suppressed in another occupation–metro pair, it is shown as Unavailable rather than filled by interpolation. Explore other metro estimates for this occupation.

Three common mistakes to avoid

  1. Calling the 10th percentile entry-level pay. It includes workers across different experience levels and employers, and the OEWS occupation group is not an experience cohort.
  2. Calling the 90th percentile a salary ceiling. The 90th percentile is a statistical point, not a maximum salary, a published job posting, or a cap on an offer.
  3. Reading suppressed data as zero. Wage estimates may be withheld; the absence of a published value does not imply an occupation pays nothing or has no local employment.

BLS estimated occupational employment is a separate descriptive quantity and should not be mistaken for current vacancies or job demand. Distinguish each wage percentile from BEA's regional price indexes and ACS household-level estimates.

Use distributions alongside city comparisons

Start with the career directory to choose an official occupation category. Inspect the five BLS percentiles for a particular metro using the dashboard's wage distribution panel. Then compare two metros for the same SOC classification, and separately review rent, price levels and commute context. If a salary is your own actual offer, enter it in the what-if worksheet rather than treating any percentile as guaranteed pay.

Official source: BLS OEWS May 2025 metropolitan tables. For the definitions and limitations of our other data sources, read the methodology.

Worked example: what a middle-half wage range means

Suppose a hypothetical occupation's published 25th percentile were $80,000 and its 75th percentile were $140,000. Approximately the middle half of the estimated wage distribution would fall between those values. The $60,000 spread describes variability across workers and jobs; it is not a raise someone should expect after a fixed number of years.

Now imagine an employer offers $95,000. You can see where that amount sits relative to the published markers, but you cannot conclude that it is fair or unfair without knowing job duties, working hours, location within the metropolitan area, benefits and the employer's hiring market. The offered salary is an observed proposal to you; the BLS values are statistical benchmarks from employers in the reference year.

When comparing two metros, keep the BLS occupation code constant. Comparing a software developer estimate in one place with a software QA analyst estimate in another can create a misleading difference even when both job titles mention software.

Four questions readers often ask

Does the 10th percentile mean entry-level salary?

No. The lower percentile describes one part of the estimated wage distribution. It is not an explicit early-career category and can include employees with varying experience, schedules and employers.

Is a salary above the 90th percentile impossible?

No. The 90th percentile is not a legal limit, pay cap or highest reported salary. Individual offers can fall above it.

Why would a percentile be unavailable even when the median is shown?

BLS can suppress particular published estimates. The missing value should remain unavailable, rather than being inferred from the nearest published point.

Can I use the median to estimate my after-tax income?

Not by itself. The median is a gross occupational wage benchmark and does not include your household taxes, payroll deductions, benefits, hours or actual negotiated offer. The site does not calculate individualized after-tax pay.

Before comparing: record the SOC code, metro boundary, wage reference year, whether the value is nominal or price-adjusted, and whether it describes a real offer or a published estimate.