Salary Needed to Live Comfortably

While cost of living premiums and inflation metrics capture the price increases in goods and services, they do not necessarily account for all the additional costs needed to live comfortably – such as a buffer from the stress of living paycheck to paycheck.

The 50/30/20 budget recommends that for sustainable comfort, 50% of your salary should be allocated to your needs, such as housing, groceries and transportation; 30% toward wants like entertainment and hobbies; and 20% toward paying off debt, saving or investing. Applying the local cost of necessities and taxes to this rule, we can derive the pre-tax salary needed to live comfortably in 99 U.S. cities.

Key Findings

On average, an individual needs $96,500 for sustainable comfort in a major U.S. city. This includes being able to pay off debt and invest for the future. It’s even more expensive for families, who need to make an average combined income of about $235,000 to support two adults and two children without the pressure of living paycheck to paycheck.
A family must make over $300k to raise two kids comfortably in six cities. Two working adults need to make a particularly high combined income in San Francisco ($339,123); San Jose ($334,547); Boston ($319,738); Arlington, VA ($318,573); New York City ($318,406); and Oakland, CA ($316,243) to raise two children with enough money for needs, wants and savings.
It takes the most money to live comfortably as a single person in New York City. This breaks down to $66.62 in hourly wages, or an annual salary of $138,570. To cover necessities as a single person in New York City, you’ll need an estimated $70,000 in wages.

Top 10 Cities With the Lowest Salaries Needed to Live Comfortably

1. Houston, Texas
Hourly wage needed for a single adult: $36.10
Annual salary needed for a single adult to live comfortably: $75,088
Combined salaries for two working adults with two children needed: $175,219

2. El Paso, Texas
Hourly wage needed for a single adult: $36.18
Annual salary needed for a single adult to live comfortably: $75,254
Combined salaries for two working adults with two children needed: $180,461

3. Lubbock, Texas
Hourly wage needed for a single adult: $36.24
Annual salary needed for a single adult to live comfortably: $75,379
Combined salaries for two working adults with two children needed: $181,043

Top 10 Cities With the Highest Salaries Needed to Live Comfortably

1. New York City, New York
Hourly wage needed for a single adult: $66.62
Annual salary needed for a single adult to live comfortably: $138,570
Combined salaries for two working adults with two children needed: $318,406

2. San Jose, California
Hourly wage needed for a single adult: $65.74
Annual salary needed for a single adult to live comfortably: $136,739
Combined salaries for two working adults with two children needed: $334,547

3. Irvine, California
Hourly wage needed for a single adult: $60.96
Annual salary needed for a single adult to live comfortably: $126,797
Combined salaries for two working adults with two children needed: $291,450

4. Santa Ana, California
Hourly wage needed for a single adult: $60.96
Annual salary needed for a single adult to live comfortably: $126,797
Combined salaries for two working adults with two children needed: $291,450

5. Boston, Massachusetts
Hourly wage needed for a single adult: $60.08
Annual salary needed for a single adult to live comfortably: $124,966
Combined salaries for two working adults with two children needed: $319,738

6. San Diego, California
Hourly wage needed for a single adult: $59.04
Annual salary needed for a single adult to live comfortably: $122,803
Combined salaries for two working adults with two children needed: $289,453

7. Chula Vista, California
Hourly wage needed for a single adult: $59.04
Annual salary needed for a single adult to live comfortably: $122,803
Combined salaries for two working adults with two children needed: $289,453

8. San Francisco, California
Hourly wage needed for a single adult: $57.48
Annual salary needed for a single adult to live comfortably: $119,558
Combined salaries for two working adults with two children needed: $339,123

9. Seattle, Washington
Hourly wage needed for a single adult: $57.40
Annual salary needed for a single adult to live comfortably: $119,392
Combined salaries for two working adults with two children needed: $283,712

10. Oakland, California
Hourly wage needed for a single adult: $57.10
Annual salary needed for a single adult to live comfortably: $118,768
Combined salaries for two working adults with two children needed: $316,243

Data and Methodology

SmartAsset used MIT Living Wage Calculator data to gather the basic cost of living for an individual with no children and for two working adults with two children. Data includes cost of necessities including housing, food, transportation and income taxes. It was last updated to reflect the most recent data available on Feb. 14, 2024.

Applying these costs to the 50/30/20 budget for 99 of the largest U.S. cities, MIT’s living wage is assumed to cover needs (i.e. 50% of one’s budget). From there the total wage was extrapolated for individuals and families to spend 30% of the total on wants and 20% on savings or debt payments.

Questions about our study? Contact us at press@smartasset.com

Photo credit: ©iStock.com/monkeybusinessimages

Salary Needed to Live Comfortably – 2024 Study (2024)

FAQs

How much money do you need to be comfortable in 2024? ›

A household with two adults and two children would need a combined income of around $235,000 to live without financial worries. The disparity in the cost of family life is particularly pronounced in certain cities. A family of four, two adults and children, need to make more than $300,000 to live comfortably.

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What is the average income to live comfortably in 2024? ›

A Smart Asset report based on MIT's Living Wage data found that the average salary required to live comfortably in the U.S. is $68,499 after taxes.

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How much do you need to make to be middle class in 2024? ›

The median household income across all 345 cities is $77,345, making middle-class income limits fall between $51,558 and $154,590. On a state level, it takes the most money to be middle class in New Jersey. A household making between $64,224 and $192,692 would be considered middle class on a state level.

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What is the salary needed to live comfortably in the US? ›

A single adult needs to make at least $116,022 annually or $55.78 per hour. West Virginia is the least expensive for a single adult, who only needs to make an estimated $37.88 per hour, or $78,790 annually.

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Is $80,000 a good salary for a single person? ›

Is $80K a good salary for a single person? $80,000 is about $5,000 higher than the U.S. median household income, so many people would consider it very good for a single person. “Good” is always a relative term when it comes to salary; whether or not the amount you earn covers your expenses is a highly personal dynamic.

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Is $75000 a good salary for a single person? ›

In many cases, that salary can offer a comfortable lifestyle and plenty of opportunities to save. But if you live in an expensive area or have a lot of debt, you may find that living on $75,000 a year requires more careful planning and budgeting.

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What percent of Americans make over 100k? ›

Only 18% of individual Americans make more than $100,000 a year, according to 2023 data from careers website Zippia. About 34% of U.S. households earn more than $100,000 a year, according to Zippia.

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What is the top 10% salary? ›

How much do you need to earn to be in the top 10% income bracket? A 2022 study by the Economic Policy Institute (EPI) found that the top 10% of earners nationally received an average income of $167,639 in 2021.

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What percentage of Americans make $75,000 a year? ›

Percentage distribution of household income in the United States in 2022

Annual household income in U.S. dollars	Percentage of U.S. households
35,000 to 49,999	10.6%
50,000 to 74,999	16.2%
75,000 to 99,999	12.3%
100,000 to 149,999	16.4%

5 more rows

May 22, 2024

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Is $150000 a year middle class? ›

Based on that number, if you earn between $50,000 and $150,000 a year, you qualify as middle class. Around half of Americans fall into the middle-class category as of 2021, according to the Pew Research Center, but the numbers have been shrinking over time, down from 61% in 1971.

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Is 75k a year upper class? ›

While ZipRecruiter is seeing annual salaries as high as $108,000 and as low as $20,000, the majority of salaries within the Upper Class jobs category currently range between $39,000 (25th percentile) to $68,000 (75th percentile) with top earners (90th percentile) making $86,000 annually across the United States.

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Is 130k a year middle class? ›

The Pew Research Center defines the middle class as households that earn between two-thirds and double the median U.S. household income, which was $65,000 in 2021, according to the U.S. Census Bureau. 21 Using Pew's yardstick, middle income is made up of people who make between $43,350 and $130,000.

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What is a good salary in 2024? ›

“A salary range of $80,001 to $95,000 is more reasonable for living comfortably, this aligns more closely with the reality in high-cost living areas.”

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Is 90k a good salary for a single person? ›

A salary of $90,000 is substantially higher than the national median household income, so yes, it's a good salary for a single person. Exactly how good depends on where you live, as the cost of living varies significantly across the U.S.

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What is a comfortable salary for a single person? ›

But just how much does a single person in California need to make to live comfortably? A new study from Smart Asset determined that a person must make at least $ 89,190 to get by comfortably.

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Is $25,000 a year livable? ›

The quick answer to this question is yes—two people can live on $25,000 a year. But it would be very difficult if you had a mortgage, auto loan, credit card debt or student debt. Plus, you would have to live in an area with a low cost of living.

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Is $20,000 a year enough to live on? ›

It can be difficult for an individual to live comfortably on $20,000 a year. With the right assistance from friends, family, and the government, however, it may be possible to meet basic needs. Families will face more challenges living off $20,000 a year.

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Is $40,000 a year livable? ›

Well, it depends. A $40,000 salary may be sufficient for an individual in a low-cost area, but it may not be enough for a family to live comfortably in most parts of the US. Rising inflation has made it more challenging to live on a $40,000 salary, but it still exceeds the poverty threshold for families.

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Is $50,000 a year livable? ›

If you earn $50,000 a year in San Francisco or New York, you undoubtedly will need a roommate — or three — to make ends meet. But in many cities in the United States, $50,000 a year is plenty to live on.

Salary Needed to Live Comfortably – 2024 Study (2024)

Key Findings

Top 10 Cities With the Lowest Salaries Needed to Live Comfortably

Top 10 Cities With the Highest Salaries Needed to Live Comfortably

Data and Methodology

Questions about our study? Contact us at press@smartasset.com

FAQs

How much money do you need to be comfortable in 2024? ›

Is 75k a year upper class? ›