As a teacher, you know that a teacher's salary leaves much to be desired. One way that many of us boost our income is by returning to school to earn a master's degree. 

But is the potential move on the salary schedule worth the cost and time of returning to school?

This guide will explain the benefits and drawbacks of becoming a student once again so you can decide if investing in a master's degree makes sense for you.

What Is the Average Salary for Teachers with a Master’s Degree?

In nearly all cases, whether you teach for a public, charter, or private school, earning your master's degree will allow you to earn substantially more than teachers with just a bachelor's degree.

According to a 2024 report on educator pay in America from the National Education Association (NEA), first-year teachers with master's degrees earn an average of $48,182 annually, roughly $3,652 (or 8.2%) more than a starting teacher with only a bachelor's degree. 

The average top salary for veteran teachers with advanced degrees in the U.S. is $74,276 yearly, nearly $11,000 more per year than top veteran teachers with only bachelor’s degrees ($63,819).

How Much Do Teachers with a Master’s Make in Different States?

Teacher salaries vary widely from state to state, depending on several factors.

Location 

Teachers will make more or less money depending on which state they teach in, the cost of living in their area, and the state’s education budget. 

The NEA 2022-2023 Teacher Salary Benchmark Report found that states in the Northeast and on the West Coast with a higher cost of living (e.g. Washington, California, Connecticut) pay the highest salaries, while the midwestern or southern states with a cheaper cost of living (e.g. Missouri, Kansas, Oklahoma) pay teachers the lowest.

How much a master’s degree will boost your paycheck also depends on the specific district and its geographical area within your state. Larger school districts in high-income urban areas typically offer more significant pay increases for master’s degrees than districts in lower-income communities or more rural areas.

Take my own teaching salary as an example. One year, as a certified teacher with a master’s degree, I earned just over $42,000 at a large, urban middle school in a mid-sized Missouri city. The following year, just 14 miles away at a small, rural high school in Kansas, my annual salary dropped to $37,000, even with the additional stipends for coaching and club sponsorships.

The difference in my salary between those two states is still relatively insignificant compared to what it can be based on your location.

Experience

The pay raise for a master’s degree also depends on your years of experience. Each year of teaching brings you one step higher on the salary schedule. Even with only an undergraduate degree, most districts offer raises just for completing a certain number of graduate credit hours beyond your bachelor’s.

However, getting your master’s degree earlier in your teaching career will, over time, result in much higher lifetime earnings and retirement savings than if you earned your advanced degree later on. Even delaying my master’s thesis by just four years meant I lost almost $20,000 in extra income!

Expertise

More districts are offering differentiated salaries or extra stipends to teachers certified to teach certain high-need subjects, such as special education, English as a Second Language, science, and math. Some schools are offering bonuses of $15,000 for teachers who can fill critical vacancies in these subjects.

Earning your master’s degree with a specialization in one of these areas means you could fill or transfer to open positions and get a bigger paycheck.

Type of Institution

Your teaching salary will also be influenced by the type of school or institution you work for. Due to collective bargaining and government funding, public schools typically pay teachers more than private or charter schools. Some non-public schools, however, may have the budget to offer higher financial incentives for master’s degrees to help recruit quality teachers.

Additional Benefits of Earning a Master’s Degree in Education

Aside from the potential salary boost, a master’s degree in education can also provide other financial and career advantages, such as:

  1. Pathways to Leadership Roles: You may qualify for higher-paying administrative positions, such as assistant principal, curriculum developer, or instructional coordinator. These roles also offer you the chance to influence school policies and support other educators.
  2. Post-Secondary Opportunities:  Most schools require high school teachers to have at least a master’s degree in a relevant subject area to teach AP or dual-credit college courses. Teaching these courses often means getting an additional stipend or other incentives. It can also open up money-making opportunities to teach as an adjunct professor at a local university or community college.
  3. Enhanced Benefits Packages: Some districts offer more comprehensive benefits packages or perks to educators with advanced degrees. This might include better retirement benefits, health insurance rates, continuing education stipends, or tuition reimbursement – all of which benefit you financially beyond just your salary.
  4. Greater Job Security: Despite teacher shortages, budget cuts are still causing many districts to lay off certified teaching staff. Having a master’s degree demonstrates a level of expertise and commitment that makes you less likely to find yourself out of a job and without a paycheck. That kind of job security offers you more stability, both emotionally and financially.  

Is Earning a Master’s Degree in Education Worth It?

It will certainly benefit your annual salary, but you should also consider the investment required to earn an advanced degree.

College tuition prices have grown exponentially, likely requiring you to take out student loans. Luckily, a master’s degree from an in-state or online university will get you the same salary increase as a private or elite university degree. You can save considerable money by doing a program through a more affordable institution and still get that salary increase.

You may want to calculate how many years it will take the bump in pay to offset the price of tuition. With the average cost of a master’s degree in education being $42,010, teachers who earn an extra $10,000 a year, for example, could potentially have their degree paid off in under five years.

A Master’s Degree is an Investment in Yourself

In the education field, a master’s degree can be a smart investment that pays off both financially and professionally. 

If you’re curious about how furthering your education might shape your teaching career journey, take our quiz to find the path for you.