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If you are wondering if you made enough money to file taxes this year, the answer will depend on more than just your income. There are other qualifying factors, such as age and marital status. What’s more, even if you are not required to file taxes, it’s often wise move to do so anyway.

Here, you’ll learn what you need to know about tax-filing requirements based on your income and other aspects of your filing status. In addition, you’ll find some smart tips for filing your tax return this season. Read on for answers to such questions as:

•   How much do you need to earn to file taxes?

•   At what point do you have to start paying taxes?

•   What are some tips for making the tax-filing process easier?

What Factors Determine If You Have to File Taxes

“How much do I have to make to file taxes?” is a valid question, but the answer is, “It depends.” While gross income (not adjusted gross income) is important, it’s not the only factor to consider. Determining whether you need to file taxes depends on your:

•   Gross income (earned and unearned)

•   Filing status

•   Age

•   Dependent status

Note: Regarding age for the 2023 tax year, you’re considered to be 65 or older by the Internal Revenue Service (IRS) if you were born before Jan. 2, 1959.

💡 Quick Tip: Banish bank fees. Open a new bank account with SoFi and you’ll pay no overdraft, minimum balance, or any monthly fees.

How Much Do You Need to Make to File Taxes?

Gross income is the number-one consideration when determining if you should file taxes. But this minimum income requirement also varies by filing status and age.

Below is a breakdown of gross income thresholds listed by filing status. You’ll also learn about instances of when dependents may need to file their own tax return.

Single

For the 2024 tax season, filing requirements for single taxpayers vary based on age:

•   Single filers under 65 must file a return if their gross income was $13,850 or more.

•   Single filers 65 or older must file a return if their gross income was $15,700 or more.

Head of Household

Similarly, those with a head of household filing status have varying thresholds based on age:

•   $20,800 for heads of household under 65.

•   $22,650 for heads of household 65 or older.

Married Filing Jointly

Married couples who file a joint return have slightly more complicated requirements since the two spouses could be in different age categories:

•   If both spouses are under 65, they must file if their gross income is $27,700 or more.

•   If one spouse is under 65 and the other is 65 or older, they must file if their gross income is $29,200 or more.

•   If both spouses are 65 or older, they must file if their gross income is $30,700 or more.

Married Filing Separately

Regardless of the age of either spouse, taxpayers who are married but filing separately must file if their gross income is just $5 or more, according to IRS guidelines.

Qualifying Surviving Spouse

If you’re a qualifying surviving spouse, the minimum gross income requirements for filing depend on your age:

•   $27,700 for filers under 65

•   $29,200 for filers 65 or older

If you earn that amount or more, you need to get your tax return in on time. (Remember, if you miss the tax-filing deadline, you may incur penalties.)

Dependent Filers

If you are a dependent claimed on someone else’s taxes, you may still have to file your own return. The minutiae of determining file requirements can be complicated and depends on:

•   Your age

•   Your marital status

•   Your vision (those who are blind have different qualifying guidelines)

The IRS Publication 501 contains a helpful table in determining file requirements, but if you’re unsure, it may be helpful to work with an accountant.

The following chart summarizes answers to “Do I have to file taxes?” in visual form. It breaks down minimum gross income amounts based on age and filing status for most taxpayers. Dependents are a notable exception. Read on for an overview of income thresholds for tax filing.

If you’re still not sure if you should file, you can use the IRS’s free online tool for determining filing requirements. You’ll need some basic info to accurately complete the assessment, but this tool can come in handy.

Recommended: What Are the Different Types of Taxes?

Should I File Taxes Even If I Don’t Have to?

Above is an outline of when you’re legally required to file taxes. But just because you don’t have to file doesn’t mean you can’t.

Even if you know how much you need to make to file taxes and are below that number, the IRS encourages everyone to file if they can get money back. This may apply if:

•   You had taxes withheld from a paycheck but didn’t make enough money to have had that money withheld.

•   You made estimated quarterly payments but didn’t make enough money to have to file.

•   You qualify for refundable tax credits that could result in your receiving funds back from the government, like the Earned Income Tax Credit.

Recommended: What Tax Bracket Am I In?

Tax-Filing Tips to Help You This Season

Filing your taxes for the first time or just in need of a refresher? Here are a few tax tips to help you file correctly this season:

•   Be prepared: Preparing for tax season before it’s time to file can make the process much easier. It may be helpful to make a list of all the forms you’re expecting, like W-2 forms and 1099 forms, and keep them located in a safe place until it’s time to file.

•   Check out IRS Free File: No need to pay for professional tax software or an accountant if you qualify for guided tax preparation through the IRS and its partners. As long as your adjusted gross income is $79,000 or less, you’ll qualify.

•   Don’t forget about state and local taxes: We often think of the IRS and our federal tax returns, but depending on where you live, you may also need to pay state and local taxes.

•   File early if possible — and use direct deposit: The sooner you file, the sooner you’ll get your tax refund. If you file electronically and choose direct deposit, the IRS says you can typically expect your refund within three weeks. The IRS also says this is safer than a paper check!

•   Understanding extensions: Sometimes, life happens, and it’s just about impossible to meet a deadline. If that’s your situation, you can file for a tax extension and have an extra six months to file your return. Just note that any taxes you owe are still due on Tax Day; it’s only the return itself that can be sent in later.

•   Don’t be afraid to ask for help: Taxes can be overwhelming. While it may not be ideal to pay for an accountant, it could mean earning a larger refund if this tax professional can identify additional tax deductions and credits for which you qualify.

Recommended: How to Make a Budget in 5 Steps

The Takeaway

Tax time can be confusing. It’s not just a matter of knowing how to file but also if you need to file at all. Depending on your income and other factors, you may not be legally required to file your taxes come April. Even if you don’t meet minimum income requirements for filing, however, it might be a good idea to file anyway if you think you may be owed money from previous withholdings or through a refundable tax credit.

And if you do get a juicy refund? Consider depositing it into a high-interest bank account where it can grow.

Interested in opening an online bank account? When you sign up for a SoFi Checking and Savings account with direct deposit, you’ll get a competitive annual percentage yield (APY), pay zero account fees, and enjoy an array of rewards, such as access to the Allpoint Network of 55,000+ fee-free ATMs globally. Qualifying accounts can even access their paycheck up to two days early.

FAQ

What happens if I don’t file my taxes?

If you don’t file your taxes but were legally required to, the IRS can charge you a Failure to File Penalty, assessed at 5% of your unpaid tax liability every month that the liability goes unpaid (up to 25%).

If you were owed a refund, you won’t be charged a penalty — but you could miss out on that money owed to you. (You have three years to file to get the refund you’re owed.)

The IRS can take additional steps if you fail to file, including criminal prosecution.

Do I have to file taxes on gifts?

As the recipient of a gift, you generally don’t have to worry about paying taxes on the gift. Instead, the person who gave you the gift would pay the taxes.

However, the IRS has several exclusions, including gifts to your spouse, gifts to a political organization, and tuition and medical expenses that you pay for someone else. Note: The IRS has an annual exclusion on gifts. For the 2023 tax year, you don’t have to pay taxes on the first $17,000 in gifts to each person you give a gift to. For most taxpayers, that means they won’t pay taxes on things like birthday and Christmas presents.

Can I file taxes even if I am under the necessary income?

Yes, you can still file taxes if you’re under the necessary income. In fact, the IRS encourages many people to file even if they don’t have to because they might still be eligible for money from the government, perhaps via refundable tax credits.

Photo credit: iStock/Fortgens Photography

SoFi® Checking and Savings is offered through SoFi Bank, N.A. ©2024 SoFi Bank, N.A. All rights reserved. Member FDIC. Equal Housing Lender.
The SoFi Bank Debit Mastercard® is issued by SoFi Bank, N.A., pursuant to license by Mastercard International Incorporated and can be used everywhere Mastercard is accepted. Mastercard is a registered trademark, and the circles design is a trademark of Mastercard International Incorporated.

SoFi members with direct deposit activity can earn 4.00% annual percentage yield (APY) on savings balances (including Vaults) and 0.50% APY on checking balances. Direct Deposit means a recurring deposit of regular income to an account holder’s SoFi Checking or Savings account, including payroll, pension, or government benefit payments (e.g., Social Security), made by the account holder’s employer, payroll or benefits provider or government agency (“Direct Deposit”) via the Automated Clearing House (“ACH”) Network during a 30-day Evaluation Period (as defined below). Deposits that are not from an employer or government agency, including but not limited to check deposits, peer-to-peer transfers (e.g., transfers from PayPal, Venmo, etc.), merchant transactions (e.g., transactions from PayPal, Stripe, Square, etc.), and bank ACH funds transfers and wire transfers from external accounts, or are non-recurring in nature (e.g., IRS tax refunds), do not constitute Direct Deposit activity. There is no minimum Direct Deposit amount required to qualify for the stated interest rate. SoFi members with direct deposit are eligible for other SoFi Plus benefits.

As an alternative to direct deposit, SoFi members with Qualifying Deposits can earn 4.00% APY on savings balances (including Vaults) and 0.50% APY on checking balances. Qualifying Deposits means one or more deposits that, in the aggregate, are equal to or greater than $5,000 to an account holder’s SoFi Checking and Savings account (“Qualifying Deposits”) during a 30-day Evaluation Period (as defined below). Qualifying Deposits only include those deposits from the following eligible sources: (i) ACH transfers, (ii) inbound wire transfers, (iii) peer-to-peer transfers (i.e., external transfers from PayPal, Venmo, etc. and internal peer-to-peer transfers from a SoFi account belonging to another account holder), (iv) check deposits, (v) instant funding to your SoFi Bank Debit Card, (vi) push payments to your SoFi Bank Debit Card, and (vii) cash deposits. Qualifying Deposits do not include: (i) transfers between an account holder’s Checking account, Savings account, and/or Vaults; (ii) interest payments; (iii) bonuses issued by SoFi Bank or its affiliates; or (iv) credits, reversals, and refunds from SoFi Bank, N.A. (“SoFi Bank”) or from a merchant. SoFi members with Qualifying Deposits are not eligible for other SoFi Plus benefits.

SoFi Bank shall, in its sole discretion, assess each account holder’s Direct Deposit activity and Qualifying Deposits throughout each 30-Day Evaluation Period to determine the applicability of rates and may request additional documentation for verification of eligibility. The 30-Day Evaluation Period refers to the “Start Date” and “End Date” set forth on the APY Details page of your account, which comprises a period of 30 calendar days (the “30-Day Evaluation Period”). You can access the APY Details page at any time by logging into your SoFi account on the SoFi mobile app or SoFi website and selecting either (i) Banking > Savings > Current APY or (ii) Banking > Checking > Current APY. Upon receiving a Direct Deposit or $5,000 in Qualifying Deposits to your account, you will begin earning 4.00% APY on savings balances (including Vaults) and 0.50% on checking balances on or before the following calendar day. You will continue to earn these APYs for (i) the remainder of the current 30-Day Evaluation Period and through the end of the subsequent 30-Day Evaluation Period and (ii) any following 30-day Evaluation Periods during which SoFi Bank determines you to have Direct Deposit activity or $5,000 in Qualifying Deposits without interruption.

SoFi Bank reserves the right to grant a grace period to account holders following a change in Direct Deposit activity or Qualifying Deposits activity before adjusting rates. If SoFi Bank grants you a grace period, the dates for such grace period will be reflected on the APY Details page of your account. If SoFi Bank determines that you did not have Direct Deposit activity or $5,000 in Qualifying Deposits during the current 30-day Evaluation Period and, if applicable, the grace period, then you will begin earning the rates earned by account holders without either Direct Deposit or Qualifying Deposits until you have Direct Deposit activity or $5,000 in Qualifying Deposits in a subsequent 30-Day Evaluation Period. For the avoidance of doubt, an account holder with both Direct Deposit activity and Qualifying Deposits will earn the rates earned by account holders with Direct Deposit.

Members without either Direct Deposit activity or Qualifying Deposits, as determined by SoFi Bank, during a 30-Day Evaluation Period and, if applicable, the grace period, will earn 1.20% APY on savings balances (including Vaults) and 0.50% APY on checking balances.

Interest rates are variable and subject to change at any time. These rates are current as of 12/3/24. There is no minimum balance requirement. Additional information can be found at https://www.sofi.com/legal/banking-rate-sheet.

Financial Tips & Strategies: The tips provided on this website are of a general nature and do not take into account your specific objectives, financial situation, and needs. You should always consider their appropriateness given your own circumstances.

Tax Information: This article provides general background information only and is not intended to serve as legal or tax advice or as a substitute for legal counsel. You should consult your own attorney and/or tax advisor if you have a question requiring legal or tax advice.

External Websites: The information and analysis provided through hyperlinks to third-party websites, while believed to be accurate, cannot be guaranteed by SoFi. Links are provided for informational purposes and should not be viewed as an endorsement.

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SoFi Loan Products
SoFi loans are originated by SoFi Bank, N.A., NMLS #696891 (Member FDIC). For additional product-specific legal and licensing information, see SoFi.com/legal. Equal Housing Lender.

SoFi Mortgages
Terms, conditions, and state restrictions apply. Not all products are available in all states. See SoFi.com/eligibility-criteria for more information.

*SoFi requires Private Mortgage Insurance (PMI) for conforming home loans with a loan-to-value (LTV) ratio greater than 80%. As little as 3% down payments are for qualifying first-time homebuyers only. 5% minimum applies to other borrowers. Other loan types may require different fees or insurance (e.g., VA funding fee, FHA Mortgage Insurance Premiums, etc.). Loan requirements may vary depending on your down payment amount, and minimum down payment varies by loan type.

Financial Tips & Strategies: The tips provided on this website are of a general nature and do not take into account your specific objectives, financial situation, and needs. You should always consider their appropriateness given your own circumstances.

Third-Party Brand Mentions: No brands, products, or companies mentioned are affiliated with SoFi, nor do they endorse or sponsor this article. Third-party trademarks referenced herein are property of their respective owners.

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What is the monthly payment on a $1 million mortgage at recent interest rates? If we remove property taxes, property insurance, and mortgage insurance from the equation, you can expect to spend between $6,653 and $8,988 a month on principal and interest alone depending on which loan term you choose. But that’s not the whole story. There’s more you’ll need to know about a $1 million mortgage payment.

Cost of a $1 Million Mortgage

The cost of a $1 million mortgage varies depending on which home mortgage loan you choose and a few other factors, such as interest rate and property taxes. As you may know, different types of mortgage loans have different expenses, such as mortgage insurance, which can change your monthly payment.

Monthly Payments for a $1 Million Mortgage

The monthly payment on a $1 million mortgage is influenced by a variety of factors, which include:

•   Interest rate

•   Fixed vs variable interest rate

•   Mortgage insurance

•   Property insurance

•   Loan term

•   Type of loan

•   Property taxes

Removing all variables except a 7% interest rate, a $1 million mortgage payment would be between $6,653 and $8,988 per month. If you’re a first time home buyer considering a $1 million mortgage, make sure you understand the true cost of buying and owning a home. Remember that your property taxes and some insurance costs may be dictated by your home’s location. (You may want to analyze the cost of living by state. Some of the best affordable places to live in the U.S. may surprise you.)

If these variables are new to you, a home loan help center may smooth out any confusion you may have.

Where to Get a $1 Million Mortgage

You can get a $1 million mortgage with mortgage lenders such as banks, credit unions, and online lenders. However, they’ll need to offer jumbo home loans since $1 million exceeds the conventional loan limit of $806,500 in most areas. When comparing lenders, look at both interest rates and fees. Loan origination fees, in particular, can vary greatly between lenders.


💡 Quick Tip: A major home purchase may mean a jumbo loan, but it doesn’t have to mean a jumbo down payment. Apply for a jumbo mortgage with SoFi, and you could put as little as 10% down.

What to Consider Before Applying for a $1 Million Mortgage

The monthly payment for a $1 million mortgage isn’t the only thing you should consider. Also keep in mind the total amount you’ll spend on interest for each loan term. For a 30-year loan with a 7% interest rate, you’ll spend $1,395,086 on interest. If you opt for a 15-year loan, you’ll spend just $617,890. This means if you can afford a 15-year loan, you’ll save $777,196.

While you’re home shopping, use a mortgage calculator to see the amount of money you’ll spend monthly and over the life of the loan. You may also want to use a home affordability calculator to incorporate your monthly debts and spending habits into the equation. While you may be able to technically afford a large monthly payment, would the expense leave room for dining out, vacations, and retirement contributions?

During the early years of your mortgage loan, more of your monthly payment typically goes toward paying off the interest on the loan, with a smaller proportion paying down the principal you owe. An amortization schedule shows how the proportions shift and you build equity more quickly in the second half of the loan term. Here are sample schedules for 30-year and 15-year loan terms:

Amortization Schedule, 30-year, 7%

Amortization Schedule, 15-year, 7%

How to Get a $1 Million Mortgage

Anyone who has ever bought a home will tell you there are tips to qualify for a mortgage. The biggest ones include saving up for a large down payment, paying down your debts, and working on your credit score before applying for a mortgage. Paying off balances lowers your debt to income (DTI) ratio and helps you qualify for better mortgage terms. The maximum DTI is usually around 43%, but it can vary with each lender and borrower.


💡 Quick Tip: Lowering your monthly payments with a mortgage refinance from SoFi can help you find money to pay down other debt, build your rainy-day fund, or put more into your 401(k).

The Takeaway

If you need to borrow $1 million to buy a home, a 15-year mortgage will require around a $9,000 a month mortgage payment, whereas a 30-year mortgage requires around $6,650. Assuming a 7% interest rate, homebuyers can expect to spend between $617,890 and $1,395,086 on interest alone.

Keep in mind that property taxes, home insurance, and mortgage insurance will increase your monthly payment. If you’re in the market to buy a $1 million house, principal and interest will comprise a majority of your monthly costs.

When you’re ready to take the next step, consider what SoFi Home Loans have to offer. Jumbo loans are offered with competitive interest rates, no private mortgage insurance, and down payments as low as 10%.

FAQ

How much is $1,000,000 mortgage a month?

You can expect to spend around $6,653 a month with a 30-year mortgage term and $8,988 a month with a 15-year term. This assumes you have a 7% interest rate (and doesn’t take into account property taxes, mortgage insurance, and property insurance).

How much income is required for a $1,000,000 mortgage?

Housing costs should be at or below 30% of your income. If you were to choose a 30-year mortgage, this suggests that your income should be around $265,000 a year. Choose a 15-year mortgage, and your income should be around $360,000.

How much is a down payment on a $1,000,000 mortgage?

Because a $1,000,000 mortgage typically means a jumbo loan, you may need to make a down payment of at least 10%. That means your minimum down payment would be $111,112 on a home priced around $1,112,000.

Can I afford a $1,000,000 house with $70K salary?

No, a $70,000 salary would not be enough to cover the cost of a mortgage on a $1,000,000 house. Assuming you make around $5,800 a month (before taxes), this would not be enough to cover the minimum payment required of either loan term.

Photo credit: iStock/Paul Bradbury

SoFi Loan Products
SoFi loans are originated by SoFi Bank, N.A., NMLS #696891 (Member FDIC). For additional product-specific legal and licensing information, see SoFi.com/legal. Equal Housing Lender.

SoFi Mortgages
Terms, conditions, and state restrictions apply. Not all products are available in all states. See SoFi.com/eligibility-criteria for more information.

*SoFi requires Private Mortgage Insurance (PMI) for conforming home loans with a loan-to-value (LTV) ratio greater than 80%. As little as 3% down payments are for qualifying first-time homebuyers only. 5% minimum applies to other borrowers. Other loan types may require different fees or insurance (e.g., VA funding fee, FHA Mortgage Insurance Premiums, etc.). Loan requirements may vary depending on your down payment amount, and minimum down payment varies by loan type.

Financial Tips & Strategies: The tips provided on this website are of a general nature and do not take into account your specific objectives, financial situation, and needs. You should always consider their appropriateness given your own circumstances.

SOHL0124068

A $450K mortgage payment is between $3,000 and $4,000 per month in the current interest-rate environment, depending on your loan type and term. This amount, however, does not include other variables that affect your payment, such as property taxes and insurance. Here’s the lowdown on what you can expect.

Cost of a $450,000 Mortgage

A $450K mortgage payment is primarily influenced by your loan term and interest rate. A 30-year loan at 7% interest would result in a monthly cost of $2,993 (not including taxes and insurance). But a 15-year loan at the same interest rate would have monthly payments of $4,044.


💡 Quick Tip: SoFi’s Lock and Look ⁺ feature allows you to lock in a low mortgage financing rate for 90 days while you search for the perfect place to call home.

Monthly Payments for a $450,000 Mortgage

The amount you pay each month for a $450,000 mortgage payment is going to be somewhere between $2,993 and $4,044. However, keep in mind that there are a few variables that affect your monthly payment. These include:

•   Interest rate

•   Fixed or variable interest rate

•   Length of repayment period (15, 20, or 30 years)

•   Mortgage insurance

•   Property taxes

•   Property insurance

Another thing to consider are homeowners association (HOA) fees. Although they are paid directly to the HOA association and shouldn’t affect your monthly mortgage payment, these fees are an additional living expense.

If you’re a first-time homebuyer, it’s important to understand the true cost of owning a home because your monthly payment is more complicated than simply the amount you borrow. Housing costs and property taxes, for example, vary based on location. If you’re open to where you live, you may want to compare the cost of living by state. The best affordable places to live in the U.S. may pique your interest!

Where to Get a $450,000 Mortgage

Banks, credit unions, and online lenders can all provide you with a $450,000 mortgage. Make sure you shop around and compare lenders to get the lowest interest rate. As you apply, you’ll receive loan estimates that show the cost of a loan. While the annual percentage rate (APR) is certainly important, also compare expenses such as the loan origination fee and mortgage insurance.

What to Consider Before Applying for a $450,000 Mortgage

Before applying for a $450,000 mortgage, consider the cost difference between a shorter loan repayment period and a longer loan repayment period. For a 30-year mortgage with a 7% interest rate, the total interest paid during the life of the loan would be $627,791.

For a 15-year mortgage with the same interest rate, you would have a higher monthly payment, but the total amount you would pay in interest would be more than halved: just $278,050. For an extra $1,050 each month, a 15-year loan would save $349,739 in interest compared to a 30-year loan.

If you can’t afford a 15-year mortgage now, just remember that you can always do a mortgage refinance in the future.

$450,000 mortgage with a term of 30 years and a 7% interest rate:

$450,000 mortgage with a term of 15 years and 7% interest rate:

It’s important to understand how costs vary between the different types of mortgage loans. A mortgage calculator can help you get a quick idea of what to expect before you commit to a home mortgage loan.

How to Get a $450,000 Mortgage

To get a $450,000 mortgage, you need a strong credit score, a steady source of income, and a low debt-to-income ratio. Other tips to qualify for a mortgage include things like saving up for a higher down payment and submitting all of the appropriate paperwork to your lender in a timely manner. If you’re just starting out on your home buying journey, a home loan help center may be a good resource.


💡 Quick Tip: Generally, the lower your debt-to-income ratio, the better loan terms you’ll be offered. One way to improve your ratio is to increase your income (hello, side hustle!). Another way is to consolidate your debt and lower your monthly debt payments.

The Takeaway

Payment on a $450,000 mortgage is influenced by a few different variables, such as your loan term and interest rate. Other factors that come into play include mortgage insurance, property taxes, and property insurance. A higher down payment and a stronger credit score may help lower your monthly payment.

Looking for an affordable option for a home mortgage loan? SoFi can help: We offer low down payments (as little as 3% - 5%*) with our competitive and flexible home mortgage loans. Plus, applying is extra convenient: It's online, with access to one-on-one help.

FAQ

How much is $450K mortgage a month?

A $450,000 mortgage should cost you around $3,000 to $4,000. Just remember to also include property taxes and insurance in your calculations.

How much income is required for $450,000 mortgage?

You probably need to earn around $140,000 a year to afford a $450,000 mortgage. A general guideline is that all of your housing costs should be at or below 30% of your gross income. Assuming you opt for a 30-year loan, your mortgage payment, property tax, and insurance cost would total around $3,200 per month. Factor in a budget for utilities and repairs and your total annual cost would be $42,000 — that’s 30% of $140,000.

How much is a down payment on a $450,000 mortgage?

A conventional loan requires a down payment of at least 3%. Therefore, your down payment should be, at minimum, $13,500. A down payment of 20% ($113,000 on a property costing $563,000) would allow you to skip paying the additional cost of mortgage insurance.

Can I afford a $450K house with a $70K salary?

It’s not likely. Assuming you choose a 30-year loan, your monthly payment would be around $3,000, which would be more than 50% of your gross income — well over the 30% that is considered the maximum amount you should spend on housing. The only way to make it work would be to have a large down payment (more than $150,000) to lower the amount you would have to borrow and thus your monthly payments.

Photo credit: iStock/AntonioGuillem

SoFi Loan Products
SoFi loans are originated by SoFi Bank, N.A., NMLS #696891 (Member FDIC). For additional product-specific legal and licensing information, see SoFi.com/legal. Equal Housing Lender.

SoFi Mortgages
Terms, conditions, and state restrictions apply. Not all products are available in all states. See SoFi.com/eligibility-criteria for more information.

*SoFi requires Private Mortgage Insurance (PMI) for conforming home loans with a loan-to-value (LTV) ratio greater than 80%. As little as 3% down payments are for qualifying first-time homebuyers only. 5% minimum applies to other borrowers. Other loan types may require different fees or insurance (e.g., VA funding fee, FHA Mortgage Insurance Premiums, etc.). Loan requirements may vary depending on your down payment amount, and minimum down payment varies by loan type.

⁺Lock and Look program: Terms and conditions apply. Applies to conventional purchase loans only. Rate will lock for 91 calendar days at the time of preapproval. An executed purchase contract is required within 60 days of your initial rate lock. If current market pricing improves by 0.25 percentage points or more from the original locked rate, you may request your loan officer to review your loan application to determine if you qualify for a one-time float down. SoFi reserves the right to change or terminate this offer at any time with or without notice to you.

Financial Tips & Strategies: The tips provided on this website are of a general nature and do not take into account your specific objectives, financial situation, and needs. You should always consider their appropriateness given your own circumstances.

Tax Information: This article provides general background information only and is not intended to serve as legal or tax advice or as a substitute for legal counsel. You should consult your own attorney and/or tax advisor if you have a question requiring legal or tax advice.

SOHL0124069

According to the Bureau of Labor Statistics, the mean annual wage for a dermatologist as of 2022 is $327,650. This career can be a challenging and rewarding profession, both financially and emotionally. Dermatologists can help their patients look and feel their best. In some cases, they can even save their lives.

Read on to better understand what it’s like to work as a dermatologist, how much they earn, and the benefits and downsides of choosing this line of work.

What Are Dermatologists

Dermatologists are a type of doctors who specialize in the field of dermatology. They manage diagnoses and treatments relating to skin, hair, and nail health. They help patients with issues ranging from eczema and skin infections to acne and skin cancer.

Some dermatologists perform cosmetic procedures like laser treatments, injections, and chemical peels. An important role that dermatologists also take on is educating patients on sun protection to help them avoid running into skin damage and skin cancer.

As you might imagine, considerable training is involved to become a dermatologist. Typically, it can take 12 years of training and education. To complete this, some aspiring dermatologists will take out student loans. The amount of average student loan debt can be similar to the amount any other medical doctor takes on, meaning in the range of $200,000.


💡 Quick Tip: When you have questions about what you can and can’t afford, a spending tracker app can show you the answer. With no guilt trip or hourly fee.

How Much Do Starting Dermatologists Make a Year?

It’s important to note that dermatologists will likely see their salaries rise over time. While their entry-level salary may be lower than the average figure, it should rise over time.

That being said, the lowest 10% of earners in this role make an estimated annual wage of $102,010. So even the lowest income is likely around or over the $100,000 a year salary level.

What is the Average Salary for a Dermatologist?

As briefly noted earlier, the average salary or hourly wage for a dermatologist can be affected by where they work.

This applies to the type of medical practice or healthcare setting they work in. Consider the annual mean wage by workplace, all of which can be relatively high-paying jobs:

•   Offices of physicians: $338,810

•   Offices of other health practitioners: $200,900

•   Personal care services: $126,640

Next, take a closer look at how dermatologist salaries vary by the state they work in, arranged from highest annual pay to lowest.

💡 Quick Tip: Income, expenses, and life circumstances can change. Consider reviewing your budget a few times a year and making any adjustments if needed.

Dermatologist Job Considerations for Pay & Benefits

Alongside receiving competitive pay, many dermatologists work full-time and therefore qualify for employer benefits.

•   If they run their own medical practice, they would need to purchase these benefits for themselves and their employees.

•   If they work for a practice they don’t own, a medical group, or in a hospital setting, they should qualify for valuable employee benefits like paid time off, retirement accounts, and healthcare.

Pros and Cons of Dermatologist Salary

The main advantage of a dermatologist salary is that it is usually quite high. The tradeoff for that high salary may be a lot of student loan debt, as noted above.

To work as a dermatologist in the United States, you need to attend and finance medical school after receiving an undergraduate degree, which can be quite time-consuming and costly.

The Takeaway

Working as a dermatologist makes it possible to help people dealing with skin care and concerns, while earning a good salary. Dermatologists earn a median annual wage of $327,650, which is a salary many people would be happy with. However, obtaining the necessary training can be quite expensive, so dermatologists may start their careers with considerable student loan debt to pay off.

FAQ

Can you make 100k a year as a dermatologist?

It’s very possible to earn $100,000 a year as a dermatologist. Even the 10% of lowest wage earners in this role earn an estimated annual salary of $102,010.

Do people like being a dermatologist?

Many people enjoy working as a dermatologist as this role can be fulfilling. Not only is the work interesting (diagnosing and resolving health concerns), but it involves helping people live healthier and happier lives.

Is it hard to get hired as a dermatologist?

It may not be challenging to find a job as a dermatologist once the applicant has the proper qualifications as the field is growing at a rate that is at least on par with other professions, if not higher.

Photo credit: iStock/stefanamer

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