You just got a new job offer and are wondering if $110,000 is a good salary. The truth is that in many parts of the U.S., it can be, especially for a single person. In most cases, you can probably cover your basic expenses and have some left over for savings.
Of course, there are many factors to consider when thinking about whether $110,000 is a good salary for you. Let’s dive in.
Is $110K a Good Salary?
In most cases, $110,000 is a good six-figure salary for a single person. Even when you factor in the rising costs of housing, food, and transportation, you can still comfortably afford to live in most parts of the country.
However, if you’re in an area where the cost of living is higher, you may find that you can afford the basics but not have much left over for other goals like retirement or travel. That’s why it’s crucial to look at your current spending patterns and the cost of living in your area to discern whether earning $110,000 is enough for your needs. A money tracker can give you a snapshot of your finances and provide insights into your spending and budgeting.
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Median Income in the U.S. by State in 2024
According to the latest data available from the U.S. Census Bureau, here is the median household income for all 50 U.S. states:
| State | Median Household Income |
|---|---|
| Alabama | $59,609 |
| Alaska | $86,370 |
| Arizona | $72,581 |
| Arkansas | $56,335 |
| California | $91,905 |
| Colorado | $87,598 |
| Connecticut | $90,213 |
| Delaware | $79,325 |
| Florida | $67,917 |
| Georgia | $71,355 |
| Hawaii | $94,814 |
| Idaho | $70,214 |
| Illinois | $78,433 |
| Indiana | $67,173 |
| Iowa | $70,571 |
| Kansas | $69,747 |
| Kentucky | $60,183 |
| Louisiana | $57,852 |
| Maine | $68,251 |
| Maryland | $98,461 |
| Massachusetts | $96,505 |
| Michigan | $68,505 |
| Minnesota | $84,313 |
| Mississippi | $52,985 |
| Missouri | $65,920 |
| Montana | $66,341 |
| Nebraska | $71,772 |
| Nevada | $71,646 |
| New Hampshire | $90,845 |
| New Jersey | $97,126 |
| New Mexico | $58,722 |
| New York | $81,386 |
| North Carolina | $66,186 |
| North Dakota | $73,959 |
| Ohio | $66,990 |
| Oklahoma | $61,364 |
| Oregon | $76,362 |
| Pennsylvania | $73,170 |
| Rhode Island | $81,370 |
| South Carolina | $63,623 |
| South Dakota | $69,457 |
| Tennessee | $64,035 |
| Texas | $73,035 |
| Utah | $86,833 |
| Vermont | $74,014 |
| Virginia | $87,249 |
| Washington | $90,325 |
| West Virginia | $55,217 |
| Wisconsin | $72,458 |
| Wyoming | $72,495 |
Recommended: Average Income by Age
Average Cost of Living in the U.S. by State in 2024
As anyone who’s ever received a paycheck knows, your salary and the amount you actually take home after taxes differ. After deducting for federal income taxes, Social Security tax, and Medicare, the average take-home pay on a $110,000 salary is around $85,544 — and that doesn’t include state taxes.
With that in mind, looking at the average cost of living in different states can help you decide whether $110,000 is a good salary. In the chart below, you can see how much a typical resident of each state spends on basics like food, transportation, utilities, and housing.
| State | Personal Consumption Expenditure |
|---|---|
| Alabama | $42,391 |
| Alaska | $59,179 |
| Arizona | $50,123/td> |
| Arkansas | $42,245 |
| California | $60,272 |
| Colorado | $59,371 |
| Connecticut | $60,413 |
| Delaware | $54,532 |
| Florida | $55,516 |
| Georgia | $47,406 |
| Hawaii | $54,655 |
| Idaho | $43,508 |
| Illinois | $54,341 |
| Indiana | $46,579 |
| Iowa | $45,455 |
| Kansas | $46,069 |
| Kentucky | $44,193 |
| Louisiana | $45,178 |
| Maine | $55,789 |
| Maryland | $52,651 |
| Massachusetts | $64,214 |
| Michigan | $49,482 |
| Minnesota | $52,849 |
| Mississippi | $39,678 |
| Missouri | $48,613 |
| Montana | $51,913 |
| Nebraska | $37,519 |
| Nevada | $49,522 |
| New Hampshire | $60,828 |
| New Jersey | $60,082 |
| New Mexico | $43,336 |
| New York | $58,571 |
| North Carolina | $47,834 |
| North Dakota | $52,631 |
| Ohio | $47,768 |
| Oklahoma | $42,046 |
| Oregon | $52,159 |
| Pennsylvania | $53,703 |
| Rhode Island | $52,820 |
| South Carolina | $46,220 |
| South Dakota | $48,997 |
| Tennessee | $46,280 |
| Texas | $49,082 |
| Utah | $48,189 |
| Vermont | $55,743 |
| Virginia | $52,057 |
| Washington | $56,567 |
| West Virginia | $44,460 |
| Wisconsin | $49,284 |
| Wyoming | $52,403 |
Source: U.S. Bureau of Economic Analysis
How to Live on $110K a Year
You can live relatively well on $110,000 a year as a single person — as long as you manage your expenses carefully. First, consider what your short- and long-term goals are. Do you want to have enough money set aside for a week-long vacation each year? Are you eager to be debt-free within a certain timeframe? Or do you want to max out your contributions to your employer-sponsored 401(k)?
Balancing these goals with your everyday expenses will help ensure you can afford the necessities while taking care of your future self.
How to Budget for a $110K Salary
Budgeting on a $110,000 salary is similar to how you would budget for other income thresholds. Consider the following strategies:
Determine Your Take-Home Pay
Assuming you make $110,000 gross, you’ll need to account for how much you’ll receive after taxes and other deductions are taken into consideration. For example, you may have to pay health insurance premiums (an average of $1,401 a year for an individual plan) or pretax retirement contributions (up to $23,000 per year). Let’s say you pay federal taxes and deductions, contribute the maximum to your 401(k), and pay the average amount for your health care, you’d be left with a take-home pay of around $61,143.
Bottom line: Once you have a clearer picture of what’s coming in, you can then budget appropriately for it. Tools like a budget planner app can help make the job easier.
Set Aside Money for Long-Term Savings
It’s fun to live in the moment, but it’s also important to think about the future. Consider using part of your income to start an emergency fund, and set aside money for larger expenses and goals. You may also want to look into savings vehicles like a high-yield savings account, which typically offers a higher interest rate than a traditional savings account.
Plan to Get Out of Debt
Using part of your salary to tackle your high-interest debt faster can be a good idea to free up funds for other pursuits. You can also consider options like refinancing or debt consolidation loans to help you reduce interest costs.
Maximizing a $110K Salary
Getting smart with your money means knowing how you can maximize the salary you earn. In general, you can aim to do so by spending only what’s necessary, investing so you can have a comfortable retirement, and saving.
You may want to consider moves like:
• Boosting your credit score to increase your chances of getting competitive interest rates
• Investing in securities that charge minimal fees
• Shopping around for loans to find the best rates and terms
• Finding a home that fits your budget
• Taking public transit when you can instead of driving a car
Quality of Life with a $110K Salary
You can have a good quality of life on a $110,000 salary depending on how you allocate your money. Even if you live in a higher cost of living area, there are ways to maximize the amount you earn to live well. Take the time to compare larger expenses like housing, insurance, and healthcare costs.
Recommended: Average Pay in the United States
Is $110,000 a Year Considered Rich?
Does earning $110,000 mean you’re considered “rich”? Well, the term is relative. It all depends on where you live and how you spend your money. For example, if you invest a good chunk of your income to help you increase your overall net worth and live in a safe area, some would consider that being rich. However, if you’re the only income earner in your family of six, then $110,000 per year is likely not enough to make you feel wealthy.
Is $110K a Year Considered Middle Class?
According to the Pew Research Center, middle-class workers earn a salary that’s two-thirds to double the national median income. By that definition, a middle-class household makes between $47,189 and $141,568, and $110k falls within that range. However, where you live will also factor into whether you’re considered middle class. That’s because different states have their own median household earnings.
Example Jobs That Make About $110,000 a Year
high-paying jobs that earn a median wage of $110,000 or more:• Architectural and engineering managers
• Financial analysts
• Software developers
• Math and science postsecondary teachers
• Dentists and doctors
• Nuclear power reactor operators
The Takeaway
Earning $110,000 can mean you have the ability to live a good quality of life. Plus, it’s higher than the average salary in the U.S. That being said, you’ll still want to be mindful about where your money goes so you can achieve your financial goals and more.
Take control of your finances with SoFi. With our financial insights and credit score monitoring tools, you can view all of your accounts in one convenient dashboard. From there, you can see your various balances, spending breakdowns, and credit score. Plus you can easily set up budgets and discover valuable financial insights — all at no cost.
FAQ
Can I live comfortably making $110k a year?
It is possible to live comfortably making $110,000 per year. However, doing so largely depends on factors like whether you have dependents, where you live, and what types of necessities and luxuries you want.
How much is $110k a year hourly?
Assuming you work 40 hours per week, you’ll earn around $52.88 each hour.
How much is $110k a year monthly?
You will earn about $9,166.66 each month on a $110,000 annual salary.
How much is $110k a year daily?
Assuming you work five days a week, $110,000 per year salary equates to roughly $423.07 per day.
Photo credit: iStock/Jacob Wackerhausen
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