Earning a salary of $85,000 can provide a good living for a single person — even one who has dependents. Of course, how far the money can go depends on where you live, your lifestyle, spending habits, and any financial obligations you may have.
Here’s a closer look at where you fall into the big picture if your annual salary is $85,000.
Is $85K a Good Salary?
If you’re making $85,000 a year before taxes, you’re earning nearly $20,000 more than the average annual U.S. salary of $65,470, according to May 2023 figures from the U.S. Bureau of Labor Statistics (BLS).
For new grads, earning $85K annually is a high-paying entry-level salary and a great jumping off point to earning even more in the not-so-distant future, if that’s your goal.
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Median Income in the US by State in 2024
The following chart shows the median income per state for a single-person household, according to figures from the U.S. Census Bureau. As you’ll see below, in many states, a salary of $85,000 puts you in a position where you’re earning more than the typical household:
| 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
Your cost of living refers to the amount of money needed in order to afford the necessities in a specific location, during a certain time period. The expenses factoring into your cost of living include food, housing, utilities, transportation, childcare, and health care.
Here’s a look at the average cost of living in each state, according to data from the U.S. Bureau of Economic Analysis.
| State | Personal Consumption Expenditure |
|---|---|
| Alabama | $42,391 |
| Alaska | $59,179 |
| Arizona | $50,123 |
| 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 |
How to Live on $85,000 a Year
In order to figure out how to best live on $85,000 a year, it helps to know how this salary breaks down on a monthly and weekly basis.
Based on a 40-hour work week with two weeks of paid vacation a year, an annual income of $85,000 works out to be about $7083.33 a month, $3,269.34 biweekly, and $1,634.62 a week. The hourly rate turns out to be $42.50 per hour.
Keep in mind these figures are your gross income. After taxes, your pay may end up being somewhere between $4,958 to $6,020 a month. You may find this easily takes care of your living expenses, chips away at some debts, and enables you to even sock some money away for the future.
Need help keeping on top of where your money is being spent with every paycheck? Tools like an online money tracker tool can help.
Recommended: How to Calculate Your Net Worth and Wealth: The Ultimate Guide
How to Budget for a $85K Salary
There are many different budgeting methods out there, but a popular one is the 50/30/20 budget. This approach allows you to allocate your money into three categories: your needs, wants, and savings.
Essentially, to follow the “rules” of the 50/30/20 budget, you’ll portion 50% of your salary to necessities (rent/mortgage payments, groceries, transportation, medical insurance), 30% toward your nonessentials or wants (travel, entertainment, leisure, dining out) and the remaining 20% toward debt repayment and savings, including retirement accounts, vacation funds, college tuition, or buying a home.
A budgeting planner app can help you get started.
Maximizing an $85K Salary
There are ways to build upon a $85,000 salary, besides budgeting, saving, and getting rid of debt. Strategies include taking advantage of certain employer offerings, paying bills on time, and exploring different investment opportunities.
Does your company have a 401(k) plan? If so, consider enrolling, and your future self will thank you later. Your employer may even offer matching contributions, often up to a certain percentage.
You can also make sure you avoid any missed payments or late fees by setting up an autopay for recurring bills. And even if $85K can go further where you live, that doesn’t mean you still can’t curb extraneous spending, such as eating home more often than ordering take-out or getting rid of streaming services you never use.
Quality of Life with an $85K Salary
Whether you’re mulling a job offer or considering a career change, you may be wondering, “Is $85K a year a good salary?” In fact, that amount of money can provide a nice quality of life for many people. But it’s worth noting that everyone has their own version of what a nice quality of life means. So the amount one person needs to live comfortably — and where — differs from person to person.
Is $85,000 a Year Considered Rich?
Similar to the question of what constitutes a good quality of life, what someone considers rich depends on their personal definition. To many folks, $85,000 may feel rich, especially if you’ve never earned close to this salary before.
The truth is, there’s no official financial designation of what it means to be rich, but generally, you’ll need to earn at least a six-figure salary to be on the road for qualification. And even when you hit that amount, it’s going to take anywhere from $329,620 to $719,253 to be considered a top earner in the U.S., according to research from GoBankingRates based on numbers from the Census Bureau.
Is $85K a Year Considered Middle Class?
According to the Pew Research Center, 51% of Americans fall into the middle class or middle income category. Middle class households are defined by Pew Research as those with an income that is two-thirds to double that of the U.S. median household income, which as mentioned earlier is $65,470.
Using that definition, SmartAsset conducted a 2024 study to determine the middle-class income limits by state. The findings indicated that on a state level, a household earning between $64,224 and $192,692 in 2024 would be considered middle class.
Example Jobs that Make About $85,000 a Year Salary
Salaries largely depend on the field or industry you work in, what companies are willing to pay, and your particular skill set. Here are some jobs that pay about $85,000 a year, based on information from the BLS:
• Dental Hygienist: $89,890
• Chiropractor: $89,760
• Real Estate Broker: $86,130
• Writer and Editor: $86,120
• Urban and Regional Planner: $85,940
• Insurance Underwriter: $85,610
• Occupational Health and Safety Specialists: $85,570
Recommended: 25 Highest Paying Jobs in the U.S.
The Takeaway
Is $85K a year a good salary? In 2024, it’s considered middle class and can be a comfortable living for a single person in many states and areas of the country. With that level of pay, someone can afford their basic needs, indulge in some of their wants, and have money left over to pay off debts or set aside savings. Earning $85K can be a great starting salary for a young person or even someone starting over in a new field, with the opportunity to increase earnings in the future.
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 $85K a year?
It depends on where you live, the expenses you currently have, and your spending habits. But in general, as a single person, you should be able to live rather comfortably on $85K a year, meeting your basic needs and have money left over.
What can I afford with an $85K salary?
Making $85,000 a year can typically cover housing, a car payment, utility and food costs, without being stretched too thin. Of course, this all relies on living within your means. For example, the average rent for a one-bedroom apartment in the U.S. is slightly over $1,500 a month, and monthly car payments average from $522 for a used car to $723 for a new car. You may be stretched if you decide to buy a home, since the average mortgage payment on a fixed 30-year mortgage is $2,833.
How much is $85K a year hourly?
The hourly rate for $85,000 a year is around $42.50.
How much is $85K a year monthly?
A salary of $85,000 works out to be about $7083.33 a month before taxes.
How much is $85K a year daily?
If you make $85k, you earn a gross amount of approximately $327 a day.
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