The journey through medical residency is one of the most demanding yet rewarding phases of a healthcare career. In 2025, residency salaries continue to reflect the balance between rigorous training and financial growth. While not yet comparable to attending-level compensation, residency salaries have seen modest improvements, influenced by inflation, geographic location, and specialization.
This comprehensive guide explores the average residency salary in 2025, the factors affecting earnings, salary trends, and how to make the most of your take-home pay.
Average Residency Salary in 2025
As of 2025, the average residency salary in the United States ranges between $61,000 and $70,000 annually, depending on the year of training, location, and specialty.
PGY-1 (Post-Graduate Year 1): $61,000 – $64,000
PGY-2 to PGY-4: $65,000 – $70,000
Chief Residents or PGY-5+: Up to $75,000+ in some programs
Despite modest increases from previous years, residents often face high cost-of-living challenges in major cities, making financial planning essential.
Key Factors Influencing Residency Salary
Several elements impact how much residents earn during their training:
1. Geographic Location
Salaries are typically higher in urban areas with a higher cost of living (e.g., New York City, San Francisco).
However, higher pay in such locations often doesn’t fully offset the cost-of-living increase.
2. Residency Program Type
Academic medical centers may offer different compensation packages compared to community-based or private hospitals.
3. Specialty Choice
Competitive or surgical specialties may provide slightly higher stipends.
Some fields, like primary care or psychiatry, may offer lower stipends but better work-life balance.
4. Year of Training
Each additional year generally brings a salary increase of about $1,000–$2,000 annually.
Take-Home Pay for a $103K Salary
While most residents don’t earn $103,000, some senior roles or unique residency tracks may offer this level of income. Here’s how it typically breaks down:
Federal Income Tax: $18,000–$22,000
State/Local Tax: Varies (0%–10%)
FICA (Social Security & Medicare): ~$7,800
Health Insurance & Benefits: ~$3,000–$5,000
Estimated Net Pay: $65,000–$72,000 annually or $5,400–$6,000 monthly
Proper budgeting is crucial, especially for residents managing student loans and living in high-cost areas.
Salary Trends and Job Market Outlook
The job market for residents continues to remain strong and stable, driven by:
Physician shortages, especially in rural and underserved areas.
A growing aging population requiring more specialized care.
Increased funding for graduate medical education in federal budgets.
Trend Alert (2025):
Some programs now offer sign-on bonuses or housing stipends to attract residents.
Enhanced mental health benefits and work-hour flexibility are being introduced to improve resident well-being.
Certifications and Education That May Impact Salary
Although all residents hold an MD or DO, certain certifications and skills can enhance earnings potential:
Relevant Certifications:
ACLS (Advanced Cardiac Life Support)
BLS (Basic Life Support)
ATLS (Advanced Trauma Life Support) for surgical specialties
PALS (Pediatric Advanced Life Support)
Additional Enhancements:
Dual degrees (MD/MPH, MD/MBA) may open doors to leadership or administrative bonuses.
Research experience may lead to fellowships or academic stipends.
Fluency in additional languages (especially Spanish, Mandarin) can result in stipends in multicultural cities.
Benefits of a Residency Beyond Salary
While the financial compensation is modest, the value of a residency lies in:
Hands-on clinical experience
Access to fellowship opportunities
Mentorship from experienced attendings
Pathway to board certification
Health insurance, paid time off, and CME (Continuing Medical Education) allowances
Some programs also offer tuition reimbursement, student loan forgiveness, or moonlighting opportunities to supplement income.
Final Thoughts
Though residency salaries in 2025 may not rival full-time physician earnings, they represent a vital investment in a rewarding career. With careful financial planning, awareness of salary trends, and pursuit of strategic certifications, residents can maximize both their earnings and their long-term potential.
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