How Much Do Data Analysts Make?

Updated July 21, 2022

Working as a data analyst can be a challenging job that involves extracting and analyzing insightful information from large data sets. Data analysts can work in a variety of specializations. Learning about what data analysts do and how much they earn can help you decide if working in this profession would be right for you. In this article, we discuss how much data analysts make, the job outlook for data analysts and how they can increase their salaries, with answers to frequently asked questions.

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How much do data analysts earn?

Data analyst salaries can vary depending on education level, years of experience, industry, location and skills. While salary averages are constantly fluctuating, the average annual salary for data analysts in the United States is presently $70,033 per year.

Data analyst salaries by state

While average salaries by nature are always shifting, the average annual salaries for data analyst jobs in the United States vary by state as follows:

  • Alabama: $57,766 per year

  • Alaska: $39,473 per year

  • Arizona: $73,731 per year

  • Arkansas: $60,280 per year

  • California: $77,428 per year

  • Colorado: $73,761 per year

  • Connecticut: $69,179 per year

  • Delaware: $66,861 per year

  • Florida: $58,821 per year

  • Georgia: $64,663 per year

  • Hawaii: $60,021 per year

  • Idaho: $55,474 per year

  • Illinois: $67,884 per year

  • Indiana: $57,587 per year

  • Iowa: $69,730 per year

  • Kansas: $48,486 per year

  • Kentucky: $60,406 per year

  • Louisiana: $53,774 per year

  • Maine: $44,022 per year

  • Maryland: $82,692 per year

  • Massachusetts: $70,812 per year

  • Michigan: $59,095 per year

  • Minnesota: $58,410 per year

  • Mississippi: $55,292 per year

  • Missouri: $64,357 per year

  • Montana: $58,287 per year

  • Nebraska: $59,379 per year

  • Nevada: $62,457 per year

  • New Hampshire: $83,324 per year

  • New Jersey: $65,645 per year

  • New Mexico: $58,760 per year

  • New York: $72,138 per year

  • North Carolina: $85,266 per year

  • North Dakota: $59,710 per year

  • Ohio: $62,414 per year

  • Oklahoma: $73,912 per year

  • Oregon: $66,079 per year

  • Pennsylvania: $63,443 per year

  • Rhode Island: $62,382 per year

  • South Carolina: $55,819 per year

  • South Dakota: $57,101 per year

  • Tennessee: $60,696 per year

  • Texas: $72,147 per year

  • Utah: $57,746 per year

  • Vermont: $53,649 per year

  • Virginia: $71,309 per year

  • Washington: $72,281 per year

  • West Virginia: $56,162 per year

  • Wisconsin: $70,168 per year

  • Wyoming: $55,602 per year

Job outlook for data analysts

According to the U.S. Bureau of Labor Statistics, data analyst jobs will see a 20% growth from 2018 to 2028, which is much faster than average. This promising job outlook for data analysts is due to the increasing need for better market research across a range of different industries. By extracting, analyzing and interpreting vast quantities of data, data analysts can obtain useful research insights that can influence market and business decisions.

Since the positions require specific analytical skills, they can be challenging to fill. Many companies leave jobs open until they find the right candidates, or they hire the best available people and train them on the job. The industries with the highest demand for data analysts are:

  • Information technology

  • Healthcare

  • Finance

  • Insurance

  • Professional services

Data analyst FAQ

Here are some answers to frequently asked questions about becoming a data analyst:

  • What are some skills that a data analyst must have?

  • What are some responsibilities of a data analyst position?

  • What educational credentials are necessary to become a data analyst?

  • What are some uses for data analysis?

What are some skills that a data analyst must have?

A data analyst must have critical thinking skills and the ability to use data visualization to make effective presentations. They should also be knowledgeable about:

  • SQL, R and Python programming

  • Microsoft SQL Server, Oracle and IBM DB2 databases

  • Predictive modeling algorithms

  • Amazon Web Services

  • Apache Spark and Scala

  • D3.js

  • MapReduce

  • PIG

  • Machine learning

  • Apache Hive

  • Apache Hadoop

What are some responsibilities of a data analyst position?

A data analyst is generally responsible for:

  • Collecting data from diverse sources and entering it into specially created databases

  • Applying software tools to automate data collection and its modification

  • Commissioning new data sets

  • Collaborating with database developers and data architects

  • Working with business executives and marketers

  • Using statistical techniques to organize, analyze and interpret the data

  • Looking for specific trends and patterns in the data

  • Checking for data issues and resolving them

  • Preparing informative reports based on the data

  • Presenting the reports to an internal audience and clients

What educational credentials are necessary to become a data analyst?

A bachelor's degree is a minimum requirement to get an entry-level job as a data analyst, but some positions may require candidates to have a master's or doctoral degree. Some of the common disciplines for graduate and postgraduate data analyst degrees include:

  • Computer science

  • Statistics

  • Mathematics

  • Business administration

  • Communications

  • Economics

  • Marketing

  • Engineering

  • Business analytics

  • Data science

  • Informatics

What are some uses for data analysis?

By extracting information from available facts and figures, data analysts can help companies to:

  • Monitor market trends

  • Study consumer behavior and buying patterns

  • Conduct predictive analysis to find if consumers will buy a product

  • Segment consumers according to purchasing habits for targeted marketing

  • Determine how to price the products

  • Discover how effective advertising campaigns are

  • Predict which products will be most profitable

  • Find ways to reduce production costs

  • Plan work schedules to improve production

How to increase a data analyst salary

To increase their salaries, data analysts can take the following steps:

  1. Learn new skills.

  2. Earn an advanced degree or certification.

  3. Get work experience.

  4. Work on personal projects.

  5. Branch out career-wise.

1. Learn new skills

Data analysts must keep up with changing industry trends and continually update their work abilities with in-demand skills. Knowledge of R and Python programming and experience with Microsoft SQL Server, Oracle and IBM DB2 databases can increase their overall employability. It can also give them leverage to negotiate a higher salary.

Related: How To Develop Your Skill Set to Advance Your Career

2. Earn an advanced degree or certification

While a bachelor's degree in various disciplines is necessary for an entry-level position as a data analyst, candidates must have a master's degree or a Ph.D. for more advanced and higher-paying jobs. Data analysts can also benefit from getting online certification in data analytics or by participating in data analytics boot camps.

Related: Impress Recruiters With These Desirable Professional Certifications

3. Get work experience

Obtaining work experience as a data analyst can be challenging. Although there is an industry-wide demand for data analysts, the selection criteria for entry-level positions is high. Candidates must often have at least three years of work experience to apply. To get the necessary work experience, it helps to do internships and pick up project-based skills and hands-on knowledge. It may also be advantageous to network with the analytics community online, gain visibility and catch the interest of company head hunters.

4. Work on personal projects

Working on freelance or personal side projects in data analysis may help with a salary increase or finding a new and better-paying job. These types of projects show initiative and can also give employers a clearer idea of the data analyst's skills and abilities.

5. Branch out career-wise

If working as a data analyst does not translate into higher earning, data analysts can consider branching out into related in-demand and high-paying fields, such as data engineering and data science. Both roles require programming knowledge.

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Jobs related to a data analyst role

Some positions that have duties similar to a data analyst are:

  • Business analyst

  • Business systems analyst

  • Business intelligence analyst

  • Financial analyst

  • Marketing specialist

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