About 10 years ago, Harvard Business Review (HBR) named data science as the Sexiest Job of the 21st Century. HBR further reported that the data scientist salary would be extremely good including for startups and those who work in smaller companies. The data science sector will have around 11.5 million job vacancies by 2026, as per the US Bureau of Labor Statistics (BLS). The demand for data science is estimated to rise by over 36% by 2031, says BLS.
An AI-related data scientist will be one of the most sought-after roles in 2024 as it has been the most frequently posted role on Indeed and ZipRecruiter throughout 2023. The salaries for data scientists can vary based on different factors. That’s a reason why finding the best-paying data scientist job seems a little bit daunting.
In this post, you will discover the average data scientist salary in United States based on different parameters.
How Much Do Data Scientists Earn?
The average salary for a data scientist in the USA is $124,321 annually, as posted on Indeed on December 20, 2023. Around 68% of data scientists in the United States believe that their salaries are sufficient for their living expenses in the USA (source: Indeed). As mentioned above, multiple factors can impact how much you can earn as a data scientist.
Data Scientists’ Salary by Experience
To get higher pay, more work experience is required. The more experience you have as a data scientist, the more an employer will prioritize you, and possibly they are ready to pay a good salary for it. According to Glassdoor, the average salary for a data scientist by experience level is as follows –
Experience in Years |
Expected Salary |
0-1 |
$96,986 |
1-3 |
$108,197 |
4-6 |
$118,101 |
7-9 |
$124,037 |
10-14 |
$131,327 |
Over 15 years |
$140,079 |
Data Scientists’ Salary by Industry
The data scientist salary can also be impacted by the industry where professionals work. According to Glassdoor, IT (Information Technology), real estate, retail and wholesale, media and communications, and financial services are high-paying industries for data scientists. Based on the industry type, the aspiring data scientists can expect the salary as given in the table below –
Industry |
Expected Salary |
IT |
$128,037 |
Real Estate |
$115,165 |
Media and Communications |
$117,664 |
Retail and Wholesale |
$117,664 |
Financial Services |
$115,657 |
Remember, these are the expected base salary with no inclusion of bonuses and other types of extra compensation.
Data Scientists’ Salary by Location
The average salary for data scientists working from home is $127,128 yearly (source: Indeed). However, those working remotely and who have good experience are often paid competitive salaries. According to Indeed, the average base salary that the data science sector pays in different cities across the US is listed below:
City |
Expected Average Base Salary |
Boston, MA |
$129,770 |
Columbus, OH |
$111,044 |
Chicago, Il |
$118,398 |
Houston, TX |
$117,851 |
Los Angeles, CA |
$142,826 |
Minneapolis, MN |
$104,707 |
New York, NY |
$127,841 |
Philadelphia, PA |
$110,645 |
St. Louis, MO |
$107,777 |
Washington, DC |
$123,311 |
Data Scientists’ Salary by Education Level
Education is another factor that impacts data scientist salary in United States. Industry experts recommend data scientists earn at least a bachelor’s degree. 51% of data scientists have a bachelor’s degree, 13% have a PhD (doctorate), and 34% have a master’s degree, as reported by Zippia.
The Burtch Works Salary Report of 2023 stated that salaries of data scientists are likely to rise based on the education level. According to this report, 72% of data scientists surveyed are equipped with an advanced degree. In line with the report of last year, business and mathematics are the key areas of the report for data scientists. However, data scientists with advanced degrees, mainly those having PhDs, are more likely to earn higher salaries than professionals at the same level as individual contributors.
Tips to Raise Your Data Scientist Salary
So, as you read above, the salary of a data scientist varies based on different factors. Thus, if you want to increase your salary in data science, you can consider earning a higher degree in data science or an associated field. A few senior data scientist profiles may need a PhD to get higher pay.
Apart from a degree, you can also consider developing new skills to expand your skill set. Machine learning, deep learning, risk analysis, statistical analysis, artificial intelligence, big data, software engineering or programming languages, data warehousing and structures, and cloud tools are crucial technical skills to develop. Additionally, earn a recognized professional certificate in a specific area of expertise to improve your data scientist resume.
Wrapping Up
In conclusion, becoming a data scientist in the USA will be the best decision as the USA is known for its unique work culture and endless excellent opportunities. Competitive salaries, a lively job market, technological breakthroughs, prestigious educational institutions, and great networking opportunities make aspiring data scientists choose the USA. So, make an informed decision and kickstart your career by choosing the right certification program that prepares you for a data scientist job.