The president of the United States has an annual salary of $400,000. However, the total compensation package for the president is much more than just their salary. There are several additional benefits and expense accounts that come with being president.
The Presidential Salary
The president’s salary is set by Congress and has been $400,000 annually since 2001. The Constitution originally determined that the president’s compensation could not be increased or decreased during their term, so the salary has to be decided prior to inauguration. However, an amendment in 1989 began linking the president’s pay scale to raises given to other federal employees.
Prior to 2001, the salary was $200,000. It has increased with inflation over the years. Here is the historical presidential salary since 1789:
| Year | Presidential Salary |
|---|---|
| 1789 | $25,000 |
| 1873 | $50,000 |
| 1909 | $75,000 |
| 1949 | $100,000 |
| 1969 | $200,000 |
| 2001 | $400,000 |
The current salary puts the president in the top 4% of income earners in the country. While certainly generous, the presidential salary represents only a small portion of the overall compensation for being president.
The Total Financial Package
On top of the $400,000 salary, presidents get:
- A $50,000 annual expense account
- $100,000 tax free travel account
- Free transportation in the presidential vehicle and aircrafts
- Free housing in the White House
- Free security
- Free medical care
- A lifelong pension after leaving office
When these additional benefits are calculated, estimates put the total value of the president’s financial package at around $1 million annually.
Presidential Expense Account
The president receives an unlimited expense account of $50,000 each year. This tax-free money can be used for any costs incurred by the president for carrying out their duties. Things like food, clothing, entertainment, and other necessities can be covered.
If presidents don’t use the full $50,000, they are allowed to roll it over to the next year. However, the unused amounts do not carry forward after they leave office.
Travel Account
Another $100,000 annually is provided to the president to cover the costs of official travel for the president, their family, and staff. This includes items like food, lodging, and ground transportation when traveling.
In addition to the monetary travel allowance, presidents fly free on Air Force One and Marine One for any presidential travel needs. Their family members also travel free on government aircrafts when accompanying the president.
White House
The White House serves as the official residence and workplace of the president, providing both housing and office space. This 132-room mansion in Washington D.C. comes fully staffed with employees who cook meals, provide cleaning services, and assist with other needs.
The General Services Administration oversees the operations and maintenance of the White House. They also handle furnishing the space with everything needed from plumbing fixtures to decor. This includes costs for redecorating when a new president takes office.
The value of living in the White House has been estimated around $200,000 per year. The hassle-free arrangement covers items like utilities, dinner parties, repairs, and upgrades.
Security
Keeping the president, their family, and their home safe and secure at all times is no small expense. The cost of Secret Service protection and other security measures for the president is estimated around $2 million per year.
This includes protection by Secret Service agents at all times in the White House, for presidential travel, and throughout the president’s daily activities. It also covers increased security updates and measures at the White House.
Medical Care
Presidents don’t need to worry about subpar or unaffordable medical care during or after their time in office. They are treated at military hospitals by White House doctors and have access to the best healthcare in the country.
After their presidency, they continue to receive full medical benefits through the military healthcare system.
Pension
Once a president leaves office after their 4 or 8 year term, they continue collecting a pension from the government.
Former presidents receive an annual pension equal to the salary of a Cabinet secretary. In 2021, that was $221,400. They are also provided funding for an office, staffing, office supplies and equipment, and mailing privileges.
The pensions were established to avoid presidents returning to private life out of financial necessity after their term and potentially using confidential government information for their own benefit.
Taxpayer Cost
While presidents do not pay for housing, travel, or other associated costs directly, U.S. taxpayers cover the expenses. The total taxpayer cost related to the president’s compensation and benefits is estimated around $3.7 million per year.
This includes the costs of the salary, benefits, transition budget after leaving office, office space and supplies, and other operating costs each year. While not pocketed directly by the president, taxpayers keep the president housed, transported, medically cared for, and paid.
| Expense | Annual Cost |
|---|---|
| Salary | $400,000 |
| Benefits | $1 million |
| Post-Presidency | $800,000 |
| Office and Staff | $500,000 |
| Other Costs | $1 million |
| Total | $3.7 million |
Income After Leaving Office
After serving their term as president, most commanders-in-chief greatly increase their income potential compared to just their government pension. Books deals for memoirs routinely bring in multimillion dollar advances.
Paid speeches can also generate six-figure paydays for an ex-president. And positions on corporate boards or with private businesses provide opportunities for former presidents to collect substantial income.
Bill Clinton made over $16 million in speeches in just his first year after leaving office. George W. Bush made around $7 million giving speeches each year after his presidency.
Lucrative Book Deals
Once out of office, most presidents get paid millions of dollars for publishing memoirs recounting their time as president. As an example, Barack Obama and his wife Michelle signed a $65 million book deal.
Even a one-term president like Jimmy Carter was able to land a $2 million book advance. The inside stories and insight a president can provide is highly marketable.
Paid Speaking
Former presidents are able to charge over $100,000 per speech they give at corporate events, conferences, and other engagements. George W. Bush reportedly made between $100,000-$175,000 per paid speech.
Corporate Boards
The prestige and connections of having a former U.S. president on an advisory board can be highly desirable for major corporations. This allows former presidents the opportunity to negotiate high-paying positions on corporate boards.
Financial Summary
The actual salary of the U.S. president is $400,000 per year. When you add in expense accounts, benefits, pensions, and taxpayer funded costs related to the presidency, the total compensation package totals around $3.7 million per year.
After leaving office, presidents make substantial amounts of money from book deals and speeches. While certainly not a motivation for pursuing the presidency, the financial opportunities after leaving office are significant.
In Summary:
- The presidential salary is currently $400,000 per year
- With benefits, the total compensation is around $1 million annually
- Additional costs to taxpayers for the presidency equal $3.7 million per year
- After the presidency, income from books and speeches is in the millions
While not extravagant, the president has all their needs taken care of during and after their term thanks to taxpayer funded benefits and earning potential. Serving as president provides financial security and often wealth after leaving office.