How much salary does President of the United States get? Here's a look at the whopping amount and what's taxable
Like every citizen of the United States of America, the President also earns a specific salary, which is almost 9 times more than what an average American earns. An average American earns, $47,216 a year, whereas the president is paid $400,000 a year, excluding the extra expense allowance, which is a whopping $50,000 a year, a $100,000 non-taxable travel account, and $19,000 for entertainment per year. It's interesting to note that while the POTUS enjoys a salary and perks, the First Lady of the house earns "nothing".
Between 1789, when George Washington became the President, to the year 2020, there have been five pay raises for the President, the most recent one coming in 2001, when Congress doubled the presidential salary. George W. Bush, who took office that year, was the first to benefit from the increase. CNBC Make It used an inflation calculator to calculate what each salary would be worth in today’s dollars. It turns out that $400,000 a year is nothing compared to what some former presidents made.
A look at the President's salary over the years
- 1789: $25,000 ($669,469 in 2018 dollars)
- 1873: $50,000 ($994,060 in 2018 dollars)
- 1909: $75,000 ($1.97 million in 2018 dollars)
- 1949: $100,000 ($1.04 million in 2018 dollars)
- 1969: $200,000 ($1.35 million in 2018 dollars)
- 2001: $400,000
Besides the salary, the president gets free transportation in the presidential limousines, Marine One and Air Force One, apart from the free housing in the White House. Another perk includes, that after leaving office, the ex-presidents remain on the government payroll, bringing in an annual pension of around $200,000, as well as health care coverage and paid official travel.
While a salary of $400,000 is sufficient to put the president among the top 1 percent of earners in the U.S., a previous president can make even more from book deals and speaking gigs. Bill Clinton has raked more than $75 million giving speeches after leaving the White House, CNN reported in 2012. President Trump, whose net worth is an estimated 2.5 billion USD, donated his entire presidential salary to charity. He bestowed his 2017 third-quarter earnings to the Department of Health and Human Services and his fourth-quarter salary to the Transportation Department.
Is the president’s income tax-free?
President’s income is not tax-free. Like most other American citizens, the President must pay taxes and file a tax return. The same laws that govern taxpaying residents apply to the president. Following all tax laws and including the tax brackets, they would pay taxes at a rate of 35% as per in 2019.