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Employee stock options (ESOs) may be included in an employee’s compensation package, as a way of giving an employee the opportunity to buy stock in the company at a certain price — and as an incentive to stay with the company for a period of time.

Employee stock options give employees the right to buy company stock at an established grant price once certain terms are met. But there’s no obligation to do so.

Exercising stock options means choosing to purchase the stock at the grant price, after a predetermined waiting period. If an employee doesn’t purchase the stock, the option will eventually expire.

Employee stock options may also give employees a sense of ownership (and, to a degree, actual ownership) in the company they work for. That can have benefits and drawbacks. But if you’re working in an industry in which employee stock options are common, it’s important to know how they work, the different types, and the tax implications.

What Are Employee Stock Options?

Employee stock options give an employee the chance to purchase a set number of shares in the company at a set price — often called the exercise price — over a set amount of time.

Typically, the exercise price is a way to lock in a lower price for the shares, although there are no guarantees.

This potentially gives an employee the chance to exercise their ESOs at a point when the exercise price may be lower than the market price — with the potential to make a profit on the shares.

Sometimes, an employer may offer both ESOs and restricted stock units (RSUs). RSUs are different from ESOs in that they are generally a promise of stock at a later date.

Employee Stock Option Basics

When discussing stock options, there are some essential terms to know in order to understand how these options work. (For investors who are familiar with options trading, some of these terms may sound similar. But options trading, which involves derivatives contracts, doesn’t have any bearing on employee stock options.)

•   Exercise price/grant price/strike price: This is the given set price at which employees may purchase the stock options.

•   Market price: This is the current price of the stock on the market (which may be lower or higher than the exercise price). Typically an employee would only choose to exercise and purchase the options if the market price is higher than the grant price.

•   Issue date: This is the date on which the employee is given the stock options.

•   Vesting date: This is the date after which an employee can exercise their stock options per the original terms or vesting schedule.

•   Exercise date: This is the date an employee actually chooses to exercise their employee stock options.

•   Expiration date: This is the date on which the employee’s ability to exercise their stock options expires.

How Do Employee Stock Option Plans Work?

When you’re given employee stock options, that means you have the option to buy stock in the company at the grant price. If you don’t use the options to purchase the stock within the specified period, they expire.

ESO Vesting Periods

Typically, employee stock options follow a vesting schedule, which is basically a waiting period after which you can exercise them. This means an employee must stay at the company a certain amount of time before they can exercise their stock options.

The stock options they’re offered may be fully vested on a certain date, or just partially vested over multiple years, meaning some of the options can be exercised at one date and others at a later date.

ESO Example

For example, imagine an employee was issued employee stock options on February 1 of 2026, with the option of buying 100 shares of the company at $10/share. They can exercise their options starting on February 1, 2027 (the vesting date) for 10 years, until February 1, 2037 (the expiration date).

If they chose not to exercise these options by February 1, 2037, the options would expire and the employee would no longer have the option to buy the stock at $10/share.

Now, let’s say the market price of shares in the company goes up to $20 at some point after they’ve vested in 2027, and the employee decides to exercise their options.

They would buy 100 shares at $10/share for $1,000 total — while the market value of those shares is actually $2,000. In this scenario, the vesting period allowed the stock to grow and deliver a profit. But the reverse could also occur: The share price could drop to $8, in which case the employee wouldn’t exercise their options because they’d lose money. Instead, they might choose to wait and see if the share price rebounds.

Exercising Employee Stock Options

You don’t need to exercise your employee stock options unless it makes sense for you. You’re under no obligation to do so. Whether you choose to do so or not will likely depend on your financial situation and financial goals, the forecasted value of the company, and what you expect to do with the shares after you purchase them.

If you plan to exercise your ESOs, there are a few different ways to do so. The shares you get are effectively the same as the shares available on online investing platforms and brokerages, but some companies have specifications about when the shares can be sold, typically because they don’t want employees to exercise their options and then sell off all their stock in the company immediately.

Buy and Hold

Once you own shares in the company, you may choose to hold onto them — effectively, a buy-and-hold strategy. To continue the example above, you could buy the 100 shares with $1,000 cash and you would then own that amount of stock in the company — until you decide to sell your shares (if you do).

Cashless Exercise

Another way to exercise your ESOs is with a cashless exercise, which means you sell off enough of the shares at the market price to pay for the total purchase.

For example, you would sell off 50 of your purchased shares at $20/share to cover the $1,000 that exercising the options cost you. You would be left with 50 shares. Most companies offering brokerage accounts may do this buying and selling simultaneously.

Stock Swap

A third way to exercise options is if you already own shares. A stock swap allows you to swap in existing shares of the company at the market price of those shares and trade for shares at the exercise price.

For example, you might trade in 50 shares that you already own, worth $1,000 at the market price, and then purchase 100 shares at $10/share.

When the market price is higher than the exercise price — often referred to as options being “in the money” — you may be able to gain value for those shares because they’re worth more than you pay for them.

Why Do Companies Offer Stock Options?

The idea behind employee stock options is generally that if employees are financially invested in the success of the company, then they’re more likely to be emotionally invested in its success as well, and this may increase employee productivity and loyalty.

From an employee’s point of view, stock options may offer a way to see some financial benefit of their own hard work. In theory, if the company is successful, then the market stock price could rise and the stock options could be worth more.

The financial prospects of the company typically influence whether people want to buy or sell shares in that company, but there are a number of factors that can determine stock price, including investor behavior, company news, world events, and primary and secondary markets.

Tax Implications of Employee Stock Options

There are two main kinds of employee stock options: qualified and non-qualified, each of which has different tax implications. These are also known as incentive stock options (ISOs) and non-qualified stock options (NSOs or NQSOs).

Incentive Stock Options (ISO)

When you buy shares in a company below the market price, you could be taxed on the difference between what you pay and what the market price is. ISOs are “qualified” for preferential tax treatment, meaning no taxes are due at the time you exercise your options — unless you’re subject to an alternative minimum tax.

Instead, taxes are due at the time you sell the stock and make a profit. If you sell the stock more than one year after you exercise the option and two years after they were granted, then you will likely only be subject to capital gains tax.

If you sell the shares prior to meeting that holding period, you will likely pay additional taxes on the difference between the price you paid and the market price as if your company had just given you that amount outright. For this reason, it may often be financially beneficial to hold onto ESO shares for at least one year after exercising, and two years after your exercise date.

Non-qualified Stock Options (NSOs or NQSOs)

NSOs do not qualify for preferential tax treatment. That means that exercising stock options subjects them to ordinary income tax on the difference between the exercise price and the market price at the time you purchase the stock. Unlike ISOs, NSOs will always be taxed as ordinary income.

Taxes may be specific to your individual circumstances and vary based on how the company has set up its employee stock option program, so it may be a good idea to consult a financial advisor or tax professional for specifics.

Should You Exercise Employee Stock Options?

While it’s impossible to know if the market price of the shares will go up or down in the future, there are a number of things to consider when deciding if you should exercise options:

•   The type of option — ISO or NSO — and related tax implications

•   The financial prospects of the company

•   Your own investment portfolio, and how these company shares might fit into your overall investment strategy

You also might want to consider how many shares are being made available, to whom, and on what timeline — especially when weighing what stock options are worth to you as part of a job offer. For example, if you’re offered shares worth 1% of the company, but then the next year more shares are made available, you could find your ownership diluted and the stock would then be worth less.

The Takeaway

Employee stock options (ESOs) can be an incentive that companies may offer their employees. They present the opportunity to invest in the company directly, and possibly profit from doing so. There are certain rules around ESOs, including timing of exercising the stock options, as well as different tax implications depending on the type of ESO a company offers its employees.

Invest in what matters most to you with SoFi Active Invest. In a self-directed account provided by SoFi Securities, you can trade stocks, exchange-traded funds (ETFs), mutual funds, alternative funds, options, and more — all while paying $0 commission on every trade. Other fees may apply. Whether you want to trade after-hours or manage your portfolio using real-time stock insights and analyst ratings, you can invest your way in SoFi's easy-to-use mobile app.

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Options involve substantial risk of loss and the possibility an investor may lose the entire amount invested. Before starting options trading, investors should be familiar with the Characteristics and Risks of Standardized Options . TTax implications with options should be considered. Consult your tax advisor to understand any impacts to your taxes.

FAQ

What happens to my stock options if I leave the company?

It depends on whether the stock options are vested or unvested. Employee stock options typically have a vesting schedule, or period of time, after which you can exercise them. If the options are not vested when you leave the company, you forfeit the stock options. If the options are partially or fully vested, your employer will typically give you a specific window of time — typically between 30 to 90 days — in which to exercise them. After that window, you typically lose the options. If you’ve already bought vested options, they are yours to keep when you leave the company.

What is the difference between ISOs and NSOs?

With ISOs, or incentive stock options, you are not taxed when you exercise your options. Instead, you pay taxes when you sell the options and make a profit. If you wait at least two years after the grant date, and at least one year after exercising the ISOs before selling them, you will typically be subject to the lower capital gains tax rate instead of the ordinary income tax rate. With NSOs, or non-qualified stock options, you are taxed at your ordinary income tax rate as soon as you exercise the options.

Do I have to exercise my stock options right away?

No. You can choose not to exercise your stock options if you wish. However, there is typically an expiration date — often, about 10 years — by which time an employee must exercise their options. After that date, you generally lose the opportunity to exercise them.

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This content is for educational and informational purposes only. The products, services, or features discussed may not currently be available via the SoFi platform. Any references to third-party products, services, or companies do not constitute an endorsement, recommendation, or solicitation by SoFi. Readers should independently evaluate their options and consider their individual financial needs and circumstances before making any decisions. ©2026 SoFi Technologies, Inc. All rights reserved.
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.

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If you dream about spending your days creating beautiful looks with your favorite beauty products, then becoming a professional makeup artist may be a good career to pursue.

But just how much money does a makeup artist make? According to the U.S. Bureau of Labor Statistics (BLS), the median annual salary for a makeup artist is $97,150.

Keep reading for more insight into makeup artist earnings, how salaries vary by state, and what this job entails.

What Is a Makeup Artist?

A makeup artist is a skilled professional responsible for applying cosmetics and beautifying an individual’s appearance for various purposes. They use their expertise to enhance facial features, create desired looks, and achieve specific artistic visions. Makeup artists work across various industries, including fashion, film, television, theater, weddings, and events. In addition to traditional makeup applications, some makeup artists specialize in special effects makeup, enabling them to create realistic wounds or fantastical characters for films or theater productions.

Personality plays a big role in whether or not someone will enjoy being a makeup artist. Being a makeup artist can be a suitable job for introverts, as it allows them to work in a more controlled and focused environment with clients one-on-one. However, working in certain settings, such as movie sets or high-profile events, may be a better fit for extroverts.

SoFi Coach℠ Chat is a tool designed to help you view and analyze your financial data, get personalized insights, learn about SoFi products, troubleshoot issues, and take certain actions in chat. Coach responses are information for you to consider and not financial advice. Coach responses are based on limited information from your connected accounts and may have inaccuracies. The insights are meant to help you think about your finances and options —they are not advice or recommendations, and they do not guarantee results. Coach may offer you options to explore SoFi products on which SoFi would earn revenue. You are solely responsible for any financial decisions you make. Coach is offered by Social Finance, LLC.

Recommended: 10 Entry-Level Jobs With Little Human Interaction

How Much Is a Makeup Artist’s Starting Salary?

How much does a professional makeup artist make when they first begin their career? Like anyone embarking on a new career path, makeup artists tend to earn less when they’re just starting out. According to the latest BLS data, the lowest 10% of earners in the makeup artist field earn a median salary of $23,360. However, as artists gain more experience and exposure, they have the potential to earn much more than that entry-level salary.

One way to help make the most of your income is to track your spending. An online budget planner lets you keep tabs on where your money is coming and going.

What Is the Average Salary for a Makeup Artist?

Makeup artistry is a type of trade job that has the potential to earn a lot of money. Take a closer look at the average salary for a makeup artist:

•   How much does a makeup artist make a year? The median annual salary for a makeup artist is $97,150.

•   How much does a makeup artist make per hour? When it comes to hourly pay, makeup artists earn a median of $46.71.

Where someone lives can play a major role in how much they earn as a makeup artist. Because the cost of living varies so much by state, salaries can vary a lot, too. While the BLS has limited data collected on how much makeup artists earn in different states, the information it does have makes it clear how much salaries can vary.

For example, in Florida, the median annual salary for a makeup artist is $82,400, whereas in Georgia it is $143,230. Alongside cost of living factors, there may be more job opportunities for makeup artists in some states. New York City is a major fashion and entertainment hub that likely has a high demand for makeup artists, which can lead to more competitive pay rates.

Median Makeup Artist Salary by State for 2025
State	Median Annual Salary
Georgia	$143,230
California	$140,870
Louisiana	$129,580
New York	$97,150
District of Columbia	$95,730
Florida	$82,400
Source: U.S. Bureau of Labor Statistics, May 2025

Recommended: The Highest Paying Jobs in Every State

Makeup Artist Benefits and Job Considerations

While makeup artists have the potential to earn a six-figure salary, the biggest downside of this job is that it is not common to earn benefits such as health insurance or to have access to a 401(k). This is because most makeup artists are self-employed and are responsible for securing and paying for any traditional employee benefits they desire.

Pros and Cons of Makeup Artist Salary

Like all jobs, working as a makeup artist comes with a unique set of pros and cons to consider before pursuing this career path.

Pros

•   Creative opportunities: Makeup artists have the freedom to express their creativity by creating unique looks for their clients, whether it’s for a photo shoot, movie, or special event.

•   Interesting workdays: The profession offers a diverse range of opportunities, from working on movie sets to collaborating with cosmetic retailers.

•   No formal education required: Unlike many other careers, becoming a makeup artist doesn’t demand a college degree.

Cons

•   Restricted earning potential: The industry’s salary standards may limit the earning potential of makeup artists, with only a few able to negotiate higher pay. What’s more, self-employed artists may not always receive consistent income or benefits.

•   Geographic limitations: Makeup artists may need to relocate to major cities such as Los Angeles, New York, or Chicago to find steady work, and they may also have to travel with clients for various projects.

•   Irregular work schedule: Makeup artists often have to adapt to erratic work hours, including weekends and holidays, and long periods of uncertainty between gigs. Maintaining a stable work-life balance could be a challenge.

The Takeaway

Makeup artistry can be a rewarding and potentially lucrative career. How much money does a makeup artist make a year? The median annual salary for a makeup artist is $97,150. While the work can be creative and glamorous, it also lacks a traditional work schedule. Plus, most makeup artists have to foot the bill for their own employee benefits. Those considering a career in this industry need to carefully consider if the advantages of this role outweigh the disadvantages.

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Meet SoFi Coach, your smart personal guide to getting your money right.

FAQ

Can you make good money doing makeup?

If you’re wondering how much does a makeup artist make in a year, you’ll probably like the answer. The median annual salary for a makeup artist is $97,150, so yes, it is possible to make good money doing makeup. However, some states, such as Georgia and California, have much more lucrative job opportunities than other states.

Can you make six figures as a makeup artist?

Yes, it is possible to make six figures as a makeup artist. The median annual salary for makeup artists nationwide is $97,150, according to the latest data from the U.S. Bureau of Labor Statistics. However, where they live plays a major role in how likely they are to earn a $100,000 salary as a makeup artist.

How much profit does a makeup artist get?

The profit a makeup artist receives varies greatly depending on their employment status and the specific makeup services they offer. Self-employed makeup artists have the potential to earn the full profit after deducting operating costs, while those working for cosmetic retailers or salons may receive a fixed salary or commission-based earnings. Factors such as location, experience, clientele, and demand for their services can also impact overall profit.

Do you need a college degree to become a makeup artist?

No, becoming a makeup artist does not require a formal college degree. This makes it an accessible career path compared to many traditional professions.

What are some of the common challenges or downsides of working as a makeup artist?

Makeup artists often face irregular work schedules, erratic hours that include weekends and holidays, and long periods of uncertainty between gigs. Additionally, because most artists are self-employed, they typically lack traditional employee benefits such as health insurance or a 401(k). However, with passion, persistence, and careful financial planning, many artists successfully navigate these hurdles and build fulfilling careers.

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About the author

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Photo credit: iStock/anatoliy_gleb

This content is for educational and informational purposes only. The products, services, or features discussed may not currently be available via the SoFi platform. Any references to third-party products, services, or companies do not constitute an endorsement, recommendation, or solicitation by SoFi. Readers should independently evaluate their options and consider their individual financial needs and circumstances before making any decisions. ©2026 SoFi Technologies, Inc. All rights reserved.

Non affiliation: SoFi isn’t affiliated with any of the companies highlighted in this article.

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The average salary for a doctor in California is $249,620 according to the latest data from the Bureau of Labor Statistics (BLS). Understanding the average salary of a profession can help you make a variety of important decisions, from what field you want to enter to where you want to live and work.

Here’s a closer look at how much medical doctors make a year in California, regional differences in salary, and the top-paying medical specialiies in the state.

What Is the Average Salary for a Medical Doctor in California?

The average salary of a physician in the state of California is $249,620 per year, according to data from the U.S. Bureau of Labor Statistics (BLS). This figure doesn’t account for a physician sign-on bonus, which some doctors receive. Interestingly, California is in the bottom half when it comes to average physicians’ salaries, ranking 33rd in the nation.

Though many consider anything more than $100,000 a good salary, the fact that California’s pay is not top tier may come as a surprise to some. However, there are some possible explanations. For one, California spends the most on Medicaid among U.S. states. Medicaid — and Medicare, for that matter — both reimburse physicians at rates lower than their usual fees. Doctors who are seeing a lot of elderly or low-income individuals may see their incomes reduced.

Note that early in your career as a doctor, while you’re in your residency or fellowship, you’ll likely make considerably less than you will later in your career. You may need to budget wisely to get by on a medical resident’s salary.

You may also want to consider using a spending app, which can help you set financial goals and a budget and track where your money goes.

SoFi Coach℠ Chat is a tool designed to help you view and analyze your financial data, get personalized insights, learn about SoFi products, troubleshoot issues, and take certain actions in chat. Coach responses are information for you to consider and not financial advice. Coach responses are based on limited information from your connected accounts and may have inaccuracies. The insights are meant to help you think about your finances and options —they are not advice or recommendations, and they do not guarantee results. Coach may offer you options to explore SoFi products on which SoFi would earn revenue. You are solely responsible for any financial decisions you make. Coach is offered by Social Finance, LLC.

How to Become a Doctor in California

Doctors are health care professionals who are charged with meeting with patients, diagnosing their conditions, and managing their care plans. They perform tests and prescribe medications. And they must coordinate with a range of other health care professionals, including other doctors, nurses, and emergency medical technicians.

That’s a lot of responsibility, and as a result, it takes a lot of training to become a doctor.

First, you’ll need to complete a bachelor’s degree in a field that relates to medicine, such as premedicine, biology, or biochemistry.

Next, you’ll need to go to medical school, where you will receive classroom and practical training to advance your knowledge in the medical field. Medical school is typically a four-year program. While in school, you’ll complete the first and second parts of the U.S. Medical Licensing Examination (USMLE). The average cost of medical school can be high, typically running more than $61,000 a year at private institutions.

When you graduate from medical school, you’ll enter a residency program that helps you choose a medical specialty. These programs usually last three years (but may be as long as seven), and under the supervision of an experienced physician, you’ll work full time as a resident doctor. You’ll complete your residency by passing the third and final part of the USMLE.

After your residency, you can choose to complete a fellowship that gives you further training in the specialty you’ve chosen. Though fellows tend to make more than residents, their salary isn’t as high as new doctors. The good news is there are ways to budget on a medical fellowship salary.

Finally, you’ll need to obtain a California medical license from the Medical Board of California. You can renew your license every two years, which requires 50 hours of continuing medical education.

Recommended: What Is the Average Medical School Debt?

Reasons to Become a Doctor

Becoming a doctor can involve a lot of challenges, but it can also be immensely rewarding work. Here are a few reasons you might become a doctor:

•   To help others: Doctors diagnose and treat medical conditions, helping to save and improve patients’ lives. They are often involved in ongoing treatment, ushering patients down the path to recovery. Being a physician is a people-centric profession that involves working closely with patients and their families to explain medical conditions and treatment options.

•   To work in the sciences: If you’re interested in a variety of scientific fields, from biology to chemistry to anatomy to pharmacology, being a doctor is a way to explore these subjects while also helping others.

•   To find purpose: The responsibility toward patients and coworkers and the ability to better people’s health and well-being often provide doctors with a sense of satisfaction and meaning in their work.

•   To become a teacher: Becoming a doctor requires a lot of schooling and ongoing training. Doctors may pass on this knowledge by educating patients on how to lead healthier lives, educating medical students in teaching hospitals, and supervising residents.

•   To have job security: The job outlook for physicians is relatively low, with the field expected to grow 4% through 2035. That said, there are still 22,100 openings for physicians projected each year, according to BLS data.

•   To make a good salary: The annual average wage for all workers in the United States is $69,770, according to the BLS — quite a bit lower than the $249,620 average annual pay for physicians in California. That means a new doctor’s budget could be easier to wrangle than other workers starting their careers, but then again, an M.D. may have considerable educational debt.

Recommended: What Is the Average Salary in the U.S.?

Best-Paying Medical Doctor Jobs in California

The medical speciality you pursue in California will have a big impact on your salary. According to BLS data, here are some of the highest-paid physicians in California.

Psychiatrist

Psychiatrists help diagnose and treat mental disorders. Unlike psychologists, they are allowed to prescribe drugs for medical treatment.

Mean salary: $269,940

Obstetricians and Gynecologists

Obstetricians and gynecologists provide medical care related to childbirth and diagnose and treat diseases of the female reproductive organs. They also specialize in women’s health issues such as hormone problems, infertility, and menopause.

Mean salary: $279,040

Anesthesiologist

Before, during, or after surgery, anesthesiologists administer anesthetics (which reduce sensitivity to pain) and analgesics (which act as pain relievers).

Mean salary: $360,570

Cardiologists

Cardiologists diagnose and treat conditions of the cardiovascular system.

Mean salary: $454,940

Radiologists

Radiologists use medical imaging techniques, such as X-rays, MRIs, and ultrasounds, to diagnose and treat diseases and injuries.

Mean salary: $381,530

Pathologists

A pathologist helps diagnose diseases by running tests on organs, tissue, and bodily fluids, such as blood.

Mean salary: $285,420

Surgeons

Surgeons are medical doctors who may have to perform surgery, a procedure that physically changes a patient’s body.

Mean salary: $364,360

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The Takeaway

Being a doctor can be fulfilling, as it allows you to help people through work in the medical sciences. It can also be monetarily rewarding, and understanding average salaries can help you make decisions about where you want to live and what you want to specialize in. Though income varies by speciality, the average salary for physicians in California is $249,620 per year. Whatever you may earn, tracking your money and budgeting wisely can be important steps to financial wellness.

Take control of your finances with SoFi Coach. You can easily view all of your accounts in one convenient dashboard: bank and investment balances, current debts, spending breakdowns, and credit score. Easily set up budgets and spot upcoming bills. And get personalized insights on everyday money questions and take action with Coach chat, the AI guide that’s powered by the playbooks of SoFi Financial Planners, so its guidance comes from expert knowledge.

Meet SoFi Coach, your smart personal guide to getting your money right.

FAQ

What is a doctor’s yearly salary in California?

In California, a doctor can expect to make $249,620 per year on average, according to data from the U.S. Bureau of Labor Statistics. However, this figure can vary significantly depending on factors such as your chosen medical specialty, years of experience, and whether you are practicing in a high-demand region.

What is the highest-paying medical specialty?

Among the highest-paid doctors in California are surgeons and cardiologists. For instance, cardiologists lead the state with a mean salary of $454,940. Radiologists and anesthesiologists also earn notably higher wages.

Who earns more: a dentist or a doctor?

In California, doctors tend to make more than dentists, who earn $202,280 per year on average. Despite the differences, both professions require extensive education and training, though medical doctors often complete residency and fellowship programs.

How long does it take to become a licensed medical doctor in California?

Becoming a doctor requires completing a four-year bachelor’s degree, four years of medical school, and a residency program that typically lasts three years or longer. After finishing your training and passing all parts of the U.S. Medical Licensing Examination, you must also obtain a medical license from the Medical Board of California.

Why do doctor wages in California rank lower nationally despite high living costs?

Although California has a high cost of living, the state ranks 33rd in the nation for average physician salaries. This lower ranking is partly attributed to heavy state spending on Medicaid and Medicare, which reimburse physicians at rates lower than their usual fees.

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Photo credit: iStock/Drazen Zigic

This content is for educational and informational purposes only. The products, services, or features discussed may not currently be available via the SoFi platform. Any references to third-party products, services, or companies do not constitute an endorsement, recommendation, or solicitation by SoFi. Readers should independently evaluate their options and consider their individual financial needs and circumstances before making any decisions. ©2026 SoFi Technologies, Inc. All rights reserved.

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Being a train conductor allows you to take people and essential goods where they need to go, see the country, and get paid while doing it. In fact, a competitive salary is often one of the big draws of the field. But just how much does a train conductor make? According to the U.S. Bureau of Labor Statistics (BLS), the median annual wage for a train conductor is $78,000.

If that salary sounds appealing, keep reading to learn what train conductors do, how much they stand to make in different states, and the pros and cons of the job.

What Is a Train Conductor?

If you’ve ever dreamed of yelling “all aboard” and taking the wheel of a train, then you may find satisfaction as a train conductor. This type of trade job is responsible for organizing and overseeing various activities within a railroad yard, industrial plant, or similar locations. They play a vital role in coordinating the actions of the train crew, whether on passenger trains or freight trains. Additionally, yardmasters take charge of reviewing train schedules and switching orders while ensuring smooth coordination among workers involved in railroad traffic operations, including train assembly, disassembly, and yard switching tasks.

Working as a train conductor can be stressful and requires attention to detail. However, introverts may find that they love this job, as it requires minimum interaction with other people.

SoFi Coach℠ Chat is a tool designed to help you view and analyze your financial data, get personalized insights, learn about SoFi products, troubleshoot issues, and take certain actions in chat. Coach responses are information for you to consider and not financial advice. Coach responses are based on limited information from your connected accounts and may have inaccuracies. The insights are meant to help you think about your finances and options —they are not advice or recommendations, and they do not guarantee results. Coach may offer you options to explore SoFi products on which SoFi would earn revenue. You are solely responsible for any financial decisions you make. Coach is offered by Social Finance, LLC.

Recommended: 10 Entry-Level Jobs With Little Human Interaction

How Much Is a Train Conductor’s Starting Salary?

How much money does a train conductor make? According to the latest BLS data, annual salaries range from a low of $58,740, which is most likely what entry-level conductors earn, all the way up to $109,770 or more. As workers gain more years of experience, they can expect to see their salary increase. At the very least, they should always expect to make the minimum wage in their state.

No matter your income, online tools make tracking your spending easy. You can easily set up budgets, then get instant updates on your progress, spot upcoming bills, analyze your spending habits, and more.

What Is the Average Salary for a Train Conductor?

While most people don’t focus their job search on trying to find the highest-paying job in their state, it’s a good idea to do salary research before pursuing a new career path.

So how much does a train conductor make per hour? Typically, train conductors earn an average hourly wage of $38.03, according to the BLS, but that rate differs by state. Take a look at the following table to get an idea of what train conductors can earn annually in different states.

Median Train Conductor Salary by State for 2025
State	Annual Median Wage
Alabama	N/A
Alaska	N/A
Arizona	$78,080
Arkansas	$67,710
California	$69,950
Colorado	$77,550
Connecticut	N/A
Delaware	$80,410
District of Columbia	N/A
Florida	$79,600
Georgia	$75,810
Hawaii	N/A
Idaho	N/A
Illinois	$79,820
Indiana	$81,260
Iowa	N/A
Kansas	$68,730
Kentucky	$52,380
Louisiana	$62,170
Maine	N/A
Maryland	$83,390
Massachusetts	N/A
Michigan	$78,960
Minnesota	$78,930
Mississippi	$78,010
Missouri	$68,030
Montana	N/A
Nebraska	N/A
Nevada	N/A
New Hampshire	N/A
New Jersey	N/A
New Mexico	$77,890
New York	$80,000
North Carolina	$58,930
North Dakota	N/A
Ohio	$61,390
Oklahoma	$102,260
Oregon	$68,580
Pennsylvania	$83,610
Rhode Island	N/A
South Carolina	$73,660
South Dakota	$62,730
Tennessee	$71,740
Texas	$68,980
Utah	N/A
Vermont	N/A
Virginia	$79,900
Washington	$79,040
West Virginia	$55,180
Wisconsin	$59,690
Wyoming	$68,430

Source: BLS

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Train Conductor Benefits & Job Considerations

Most train conductors work full-time and are eligible for employer benefits on top of their salary. Benefits such as health insurance and paid time off can be valuable and increase the overall value of a compensation package.

Savvy employers know that alongside offering a competitive salary, a robust benefits package can attract and retain top talent. Common employee benefits that train conductors may expect to see include:

•   Health insurance

•   Dental insurance

•   Vision insurance

•   Flexible spending account

•   Paid time off

•   Employee assistance program

•   Life and disability insurance

•   Retirement savings plan

Pros and Cons of Train Conductor Salary

Like any job, working as a train conductor comes with a unique set of advantages and disadvantages that are worth being aware of.

Pros

•   Minimal educational requirements, making it accessible to a broader range of individuals.

•   Job training is provided by employers, allowing for on-the-job skill development.

•   Regular rest hours are enforced, ensuring a reasonable work-life balance.

Cons

•   Federal certification requirements add an additional step to the process.

•   The job can be physically demanding, especially in challenging weather conditions.

•   Work weeks may extend beyond the standard 40 hours, leading to potential overtime hours.

•   Irregular scheduling is common, which can make it challenging to maintain a consistent routine.

The Takeaway

Considering a job as a train conductor? Though rewarding, this line of work is also high stakes, and anyone considering this career path needs to be prepared to take the responsibility seriously. It’s also important to understand what the position typically pays and what your earning potential could be. The median annual salary train conductors earn is $78,000, but train conductors with many years of experience can expect to earn more than this.

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Coach helps you track, budget, save, and invest with step-by-step, chat-based guidance.

FAQ

What is the highest paying railroad job?

If someone is looking to make the most money possible as a train conductor, they may want to consider working for their state government. According to BLS data, train conductors who work for state governments earn an average salary of $92,130 per year.

Do train conductors make six figures?

How much does a train conductor make per year, and can they earn a six-figure salary? The good news is that it is possible to earn six figures as a train conductor. While the average train conductor earns a median salary of $78,000, some earn upwards of $109,770 each year.

What is the average age for a train conductor?

Many people find fulfilling careers as train conductors at all different ages. That said, the average age for a train conductor is 43.

Is it hard to get a job as a train conductor?

Getting a job as a train conductor can be considered moderately challenging. The career generally doesn’t require a college degree, but it does have training and certification requirements, and the lifestyle requires flexibility.

Can you be a train conductor with no experience?

You can become a train conductor with no prior railroad experience. Many major freight and passenger rail companies hire trainees with zero experience and provide all the necessary training.

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Photo credit: iStock/Laser1987

This content is for educational and informational purposes only. The products, services, or features discussed may not currently be available via the SoFi platform. Any references to third-party products, services, or companies do not constitute an endorsement, recommendation, or solicitation by SoFi. Readers should independently evaluate their options and consider their individual financial needs and circumstances before making any decisions. ©2026 SoFi Technologies, Inc. All rights reserved.

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According to the latest figures from the Bureau of Labor Statistics, the average salary for a construction worker is $52,030, or $25.02 per hour. Construction workers are a crucial part of the labor force across the country, and the industry is expected to grow through the end of the decade. Without a formal education requirement, construction work can be a viable option for anyone uninterested in getting a college degree right after high school.

That said, construction labor can be grueling. The job is physically demanding and, at times, dangerous. You’ll need to consider your physical limitations before pursuing a career in construction work.

Knowing what your income will look like may be the most important consideration of all. Read on for a breakdown of the average construction worker starting salary, as well as their typical responsibilities and required skills.

What Do Construction Workers Do?

Construction crews work on building sites for new homes, multifamily units, commercial buildings, roads, and bridges. Following detailed plans, construction workers are responsible for taking apart old structures and erecting new ones.

Depending on the job site, construction workers may operate heavy machinery, use hand tools, and perform plumbing and electrical tasks.

Construction work requires significant strength, endurance, and tolerance for extreme temperatures. The industry also has one of the highest rates of injuries on the job, so construction laborers must be familiar with safety protocols.

Construction Worker Job Responsibility Examples

What kinds of things might you be responsible for as a construction worker on a job site? Here are some examples:

•   Removing debris

•   Loading and unloading materials

•   Assembling bracing, scaffolding, and other temporary structures to help with the construction

•   Operating heavy machinery and using hand tools when building and taking apart structures

•   Digging trenches, compacting earth, and backfilling holes

•   Directing traffic

•   Driving work trucks (may require a CDL, or commercial driver’s license)

•   Measuring and cutting materials

•   Conducting minor plumbing, electrical, and carpentry work

Construction Worker Skills

Though you don’t need a secondary education to be a construction worker, you’ll need to learn specific skills. You might develop some of these on the job:

•   Ability to use tools and operate machinery

•   Plumbing, electrical, carpentry, masonry, concrete, roofing, drywall, and/or demolition know-how

•   Knowledge of various safety protocols

•   Basic math and measurement skills

•   Hand-eye coordination

•   Physical strength and energy

In addition, construction workers must be able to solve problems on the fly and must embrace teamwork. This is not a job for introverts!

How Much Do Starting Construction Workers Make?

Construction worker entry-level salaries vary by state, but you can expect pay to be on the lower end when you’re just starting out. The bottom 10% of earners in the industry bring home about $35,090 or less per year.

If you’re entering the construction industry with a degree, you will likely make more when you’re starting out. With an education, you might go straight into construction management. The bottom 10% of construction managers earn up to $69,690 a year, and the average annual salary is $124,360.

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What Is the Average Salary for a Construction Worker?

The average salary for a construction worker in 2025 was $52,030, but rates vary significantly across the country. The average hourly rate for a construction worker is $25.02. Total income is about the same whether you get a salary vs. hourly pay.

As you’d expect, areas with a higher cost of living (think California, New York, and Hawaii) generally have more competitive pay than areas with a lower cost of living (states such as Alabama, Mississippi, and Arkansas). But no matter where you live, a budget planner app can help you keep tabs on your spending and saving.

How much do construction workers make in New York? On average, $62,180. In California, the mean salary is even higher, at $64,870 a year. But it’s Hawaii where construction workers make the most money on average: $71,520.

Check out the following table for additional state insights:

State	Average Construction Worker Salary
Alabama	$37,910
Alaska	$59,270
Arizona	$47,910
Arkansas	$39,250
California	$64,870
Colorado	$49,830
Connecticut	$59,250
Delaware	$48,020
Florida	$44,550
Georgia	$41,530
Hawaii	$71,520
Idaho	$48,630
Illinois	$67,620
Indiana	$54,060
Iowa	$51,580
Kansas	$45,580
Kentucky	$45,840
Louisiana	$42,250
Maine	$47,800
Maryland	$48,330
Massachusetts	$70,830
Michigan	$53,130
Minnesota	$64,740
Mississippi	$40,310
Missouri	$60,850
Montana	$51,580
Nebraska	$48,350
Nevada	$54,030
New Hampshire	$51,730
New Jersey	$70,400
New Mexico	$41,450
New York	$62,180
North Carolina	$45,250
North Dakota	$53,150
Ohio	$58,300
Oklahoma	$43,310
Oregon	$55,710
Pennsylvania	$54,330
Rhode Island	$61,780
South Carolina	$45,470
South Dakota	$44,310
Tennessee	$45,970
Texas	$42,910
Utah	$48,410
Vermont	$51,000
Virginia	$43,670
Washington	$61,320
West Virginia	$45,550
Wisconsin	$57,960
Wyoming	$45,420
Source: U.S. Bureau of Labor Statistics, May 2025

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

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Pros and Cons of Construction Worker Salary

Being a construction worker has some advantages, but there are also drawbacks to consider.

Pros

•   Job growth: The job market is projected to grow by 6% from 2025 to 2035, meaning there should be ample opportunities available.

•   Flexibility: Construction jobs are available across the country. If you want to relocate somewhere else, you shouldn’t have trouble finding a job.

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Cons

•   Difficult work: Construction labor can be physically demanding. It may lead to injury and illness, and you can leave job sites tired and sore each day.

•   Less money: Construction workers make significantly less money than construction managers. (A money tracker can help you take control of your finances.) If you’re able to get a bachelor’s degree in construction management, you may earn more money over your lifetime.

•   Long-term career options: As you age, you may become less equipped to keep up with the physical demands of the job. This could force an early retirement, right when you should be in your earning prime. You may instead need to look for a work-from-home job for retirees to ensure you have enough income until you’re eligible for Social Security benefits and other retirement income.

The Takeaway

Construction workers can make decent money over the course of their careers, and you won’t have to take out a student loan to get a degree to land a job. However, the work can be exhausting and lead to injury. Weigh all the pros and cons carefully before starting a career as a construction worker.

Take control of your finances with SoFi Coach. You can easily view all of your accounts in one convenient dashboard: bank and investment balances, current debts, spending breakdowns, and credit score. Easily set up budgets and spot upcoming bills. And get personalized insights on everyday money questions and take action with Coach chat, the AI guide that’s powered by the playbooks of SoFi Financial Planners, so its guidance comes from expert knowledge.

Meet SoFi Coach, your smart personal guide to getting your money right.

FAQ

How much do most construction workers make?

How much money a construction worker makes depends on where they live and their level of experience. However, the average construction laborer brings in $52,030 a year.

Who is the highest-paid construction worker?

Hawaii has the highest-paid construction workers, with an average salary of $71,520. Massachusetts and New Jersey follow with annual average salaries of $70, 830 and $70,400, respectively.

What job pays the best in construction?

Pipeline transportation of natural gas is the highest-paying job in construction, with laborers earning a median wage of $96,890 a year. Other high-paying construction fields include construction support services, construction work for medical and surgical hospitals, rail transport construction, and electric power generation, transmission, and distribution.

What educational requirements are needed to become a construction worker?

There is no formal education requirement to become a construction worker, making it a viable option for anyone who is uninterested in getting a college degree right after high school. However, entering the industry with a relevant degree can help you secure higher-paying positions, such as those in construction management, right away.

What are some of the main pros and cons of working in the construction industry?

A major advantage of construction work is strong growth and nationwide flexibility, with the job market projected to grow by 6% from 2025 to 2035. On the downside, the work is physically demanding, carries high rates of injury, and can become difficult to keep up with as you age.

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Photo credit: iStock/damircudic

This content is for educational and informational purposes only. The products, services, or features discussed may not currently be available via the SoFi platform. Any references to third-party products, services, or companies do not constitute an endorsement, recommendation, or solicitation by SoFi. Readers should independently evaluate their options and consider their individual financial needs and circumstances before making any decisions. ©2026 SoFi Technologies, Inc. All rights reserved.

Third Party Trademarks: Certified Financial Planner Board of Standards Center for Financial Planning, Inc. owns and licenses the certification marks CFP®, CERTIFIED FINANCIAL PLANNER®

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