Depending on your financial liabilities, a gross annual income of $150,000 is a good salary, especially for a single person.
Keeping tabs on the competitiveness of your income is an essential part of career growth and the financial and life goals you set for yourself. If you’re curious about how your six-figure salary compares to the average worker nationally and in each state, keep reading.
Is $150K a Good Salary?
For a single person, especially one who’s not supporting any dependents, $150,000 is a good annual salary. Consider the average salary in the U.S., which is $65,470, according to May 2023 data from the Bureau of Labor Statistics (BLS). A $150,000 annual salary is about 129% higher than the national average.
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Recommended: What Is the Average Pay in the United States Per Year?
Median Income in the US by State in 2024
The median income of workers differs across state lines, often even for the same profession. Typically, this is due to varying costs of living between states. Below are the median household incomes in every U.S. state, according to the latest data available from the U.S. Census Bureau.
| 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 |
Average Cost of Living in the US by State in 2024
Although $150K is a good salary for a single person, how far it goes depends on multiple factors, including your state’s cost of living (COL). Using a money tracker can offer insight into how to manage your finances no matter where you live.
Let’s take a look at the breakdown of COL by state, as aggregated by the Missouri Economic Research and Information Center.
| State | Cost of Living Index |
|---|---|
| Alabama | 88.3 |
| Alaska | 125.2 |
| Arizona | 108.4 |
| Arkansas | 89.0 |
| California | 138.5 |
| Colorado | 105.1 |
| Connecticut | 112.8 |
| Delaware | 101.1 |
| Florida | 100.7 |
| Georgia | 90.8 |
| Hawaii | 180.3 |
| Idaho | 98.6 |
| Illinois | 92.1 |
| Indiana | 91.0 |
| Iowa | 90.3 |
| Kansas | 87.1 |
| Kentucky | 92.0 |
| Louisiana | 91.0 |
| Maine | 109.9 |
| Maryland | 116.5 |
| Massachusetts | 146.5 |
| Michigan | 90.6 |
| Minnesota | 94.1 |
| Mississippi | 86.3 |
| Missouri | 88.5 |
| Montana | 102.9 |
| Nebraska | 90.9 |
| Nevada | 101.0 |
| New Hampshire | 114.1 |
| New Jersey | 113.9 |
| New Mexico | 94.0 |
| New York | 125.9 |
| North Carolina | 95.3 |
| North Dakota | 94.6 |
| Ohio | 94.7 |
| Oklahoma | 86.2 |
| Oregon | 114.7 |
| Pennsylvania | 95.6 |
| Rhode Island | 110.7 |
| South Carolina | 95.3 |
| South Dakota | 92.4 |
| Tennessee | 90.3 |
| Texas | 92.7 |
| Utah | 103.2 |
| Vermont | 115.3 |
| Virginia | 101.9 |
| Washington | 116.0 |
| West Virginia | 87.7 |
| Wisconsin | 95.1 |
| Wyoming | 92.4 |
How to Budget on a $150K Annual Salary
There are many budgeting strategies to explore, but one that offers a helpful guideline is the 50/20/30 budget. It buckets 50% of your take-home pay toward need-based expenses, like housing payments, auto loan payments, utilities, and groceries. Thirty percent of your net salary goes toward your wants, like shopping, entertainment, and dining out. Finally, 20% of your net salary is directed to your savings, like a high-yield savings account or retirement fund.
The 50/20/30 guide helps you allocate your take-home salary to your most important financial obligations and future self, while also leaving wiggle room for you to enjoy the rewards of your hard work.
One way to track your progress is with a budget planner app. This tool lets you set custom budget categories and goals for your spending so you see where your dollars go each month.
Maximizing a $150K Salary
A six-figure salary can provide a comfortable life, but how you manage it has just as big an impact. Here are a few ideas to maximize your $150K pay as a single person:
• Automate your savings. “Paying yourself first” is the first step in maximizing your $150K salary. This includes setting up auto-deposits into a high-yield savings account for a rainy day, and enrolling in your employer’s 401(k) retirement plan so your contributions have time to grow.
• Pay down existing debt. Letting unpaid revolving debt, like credit card balances, roll over each month keeps you buried in seemingly never-ending payments. If you have a lot of credit card debt, and already have a comfortable emergency fund, focus on paying off your debt. Doing so offers significant savings on interest over the long-term.
• Explore investments. If you have your savings, retirement, and debt repayment strategy handled, another area that can help maximize your $150K salary is investing. Note that with any investment, there’s always a risk of losing your money.
Is $150,000 a Year Considered Rich?
An annual salary of $150K won’t get you into the upper 1% — that requires an annual wage of at least $785,968, according to the Economic Policy Institute. But a $150,000 annual income will place you just above the 90th to 95th percentile among U.S. earners.
Since “rich” is a subjective description, one way to answer this question is by learning how to calculate your net worth. Your net worth is your total assets minus your total liabilities (e.g., debt, bills, child support, etc.).
You can use a net worth calculator by age to see where your finances stand.
Is $150K a Year Considered Middle Class?
Generally, earning $150K is way more than a good entry-level salary, and can be a comfortable wage for a single professional. If you don’t provide for dependents, your income exceeds the overall national median salary and the median salary in every state.
To further illustrate this point, the Pew Research’s income calculator states that a $150K salary puts you in the “upper income” tier even in high-cost areas like California, Hawaii, and the District of Columbia.
Example Jobs That Make About $150,000 a Year
Interested in the highest-paying jobs by state? How much a profession pays is largely subject to the industry you work in and whether there’s a high demand for your skills in your area.
Although annual salaries vary between companies across the country, here are a few jobs that make about $150K annually, according to data from the BLS:
| Profession | Median Salary |
|---|---|
| Advertising, promotions, and marketing managers | $156,580 |
| Financial managers | $156,100 |
| Physicists and astronomers | $149,530 |
| Podiatrists | $141,650 |
Recommended: Low-Stress Jobs for Introverts
The Takeaway
Is $150K a good salary for a single person? Generally speaking, yes, earning $150,000 a year is considered an excellent salary in most places in the U.S. It surpasses the median income across all states, even in areas with high cost of living, like New York. But whether a $150,000 annual salary feels comfortable to you depends on how you budget your money and expenses.
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 $150k a year?
Whether you can live comfortably earning $150,000 annually depends on your household size and preferred lifestyle. By comparison, the average pay in the United States is $65,470, according to the Bureau of Labor Statistics May 2023 National Occupational Employment and Wage Estimates.
What can I afford with a $150k salary?
What you can afford with a $150,000 salary depends on various factors, like the cost of living in your area, household size, current debt, and overall lifestyle. A home is arguably the largest purchase workers have. According to Zillow’s affordability calculator, with a $20K down payment and $250 in monthly debts, you can comfortably afford a home price of $508,202.
How much is $150k a year hourly?
An annual $150K income breaks down to an hourly wage of $72.12 per hour. This figure is your gross hourly salary and doesn’t include taxes and payroll deductions.
How much is $150k a year monthly?
With a $150K annual salary, your monthly gross salary is $12,500.
How much is $150k a year daily?
A gross annual income of $150,000 per year equates to a $576.92 daily salary. This calculation assumes you’re working 40 hours per week and eight hours per day.
Photo credit: iStock/VioletaStoimenova
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