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A “good salary” means completely different things depending on where you live — $55,000 buys a comfortable life in Mississippi but barely covers rent in San Francisco. This guide breaks down what you actually need to earn in all 50 states, accounting for taxes, housing costs, and real purchasing power.
What Makes a Salary “Good”?
| Factor | Why It Matters |
|---|---|
| Cost of living | Housing, groceries, utilities, transportation vary 40-80% between cheapest and most expensive states |
| State income tax | Ranges from 0% (9 states) to 13.3% (California) — a $10,000+ annual swing |
| Median income | Beating your state’s median means you’re above average locally |
| Housing costs | The single biggest expense — median home prices range from $150K to $800K+ by state |
| Family size | A “good” salary for one person is very different from a family of four |
Low-Cost States (COL Index Under 90)
| State | Good Salary | Median Household | COL Index | Learn More |
|---|---|---|---|---|
| Mississippi | $50,000 | $52,000 | 84 | Details |
| West Virginia | $52,000 | $53,000 | 84 | Details |
| Arkansas | $52,000 | $54,000 | 86 | Details |
| Oklahoma | $53,000 | $55,000 | 87 | Details |
| Alabama | $53,000 | $56,000 | 87 | Details |
| Kentucky | $54,000 | $55,000 | 88 | Details |
| Kansas | $55,000 | $66,000 | 88 | Details |
| Iowa | $55,000 | $67,000 | 89 | Details |
| Indiana | $55,000 | $62,000 | 89 | Details |
| Missouri | $55,000 | $63,000 | 89 | Details |
Below-Average Cost States (COL Index 90-97)
| State | Good Salary | Median Household | COL Index | Learn More |
|---|---|---|---|---|
| Tennessee | $57,000 | $60,000 | 90 | Details |
| Louisiana | $55,000 | $55,000 | 91 | Details |
| Ohio | $57,000 | $62,000 | 91 | Details |
| Nebraska | $57,000 | $68,000 | 91 | Details |
| Georgia | $58,000 | $65,000 | 92 | Details |
| Michigan | $58,000 | $64,000 | 92 | Details |
| North Carolina | $58,000 | $63,000 | 93 | Details |
| South Carolina | $57,000 | $59,000 | 93 | Details |
| Texas | $60,000 | $68,000 | 93 | Details |
| Wisconsin | $58,000 | $67,000 | 93 | Details |
| South Dakota | $56,000 | $65,000 | 93 | Details |
| North Dakota | $58,000 | $70,000 | 93 | Details |
| New Mexico | $55,000 | $54,000 | 94 | Details |
| Idaho | $58,000 | $63,000 | 94 | Details |
| Wyoming | $58,000 | $70,000 | 95 | Details |
| Pennsylvania | $60,000 | $68,000 | 95 | Details |
| Montana | $58,000 | $62,000 | 95 | Details |
| Minnesota | $62,000 | $78,000 | 96 | Details |
| Florida | $60,000 | $63,000 | 97 | Details |
| Illinois | $62,000 | $72,000 | 97 | Details |
Above-Average Cost States (COL Index 98-110)
| State | Good Salary | Median Household | COL Index | Learn More |
|---|---|---|---|---|
| Arizona | $60,000 | $65,000 | 98 | Details |
| Delaware | $62,000 | $72,000 | 99 | Details |
| Nevada | $60,000 | $63,000 | 99 | Details |
| Virginia | $65,000 | $80,000 | 100 | Details |
| Utah | $62,000 | $75,000 | 100 | Details |
| Alaska | $65,000 | $78,000 | 104 | Details |
| Colorado | $68,000 | $78,000 | 105 | Details |
| Vermont | $65,000 | $68,000 | 105 | Details |
| Oregon | $65,000 | $70,000 | 105 | Details |
| New Hampshire | $68,000 | $83,000 | 106 | Details |
| Rhode Island | $65,000 | $72,000 | 106 | Details |
| Maine | $62,000 | $64,000 | 106 | Details |
| Washington | $72,000 | $82,000 | 108 | Details |
| Connecticut | $72,000 | $84,000 | 110 | Details |
| Maryland | $70,000 | $90,000 | 110 | Details |
| New Jersey | $72,000 | $85,000 | 112 | Details |
High-Cost States (COL Index 110+)
| State | Good Salary | Median Household | COL Index | Learn More |
|---|---|---|---|---|
| New York | $78,000 | $75,000 | 115 | Details |
| California | $80,000 | $85,000 | 135 | Details |
| Massachusetts | $78,000 | $90,000 | 135 | Details |
| Hawaii | $85,000 | $84,000 | 170 | Details |
| DC | $82,000 | $90,000 | 145 | Details |
No-Income-Tax States
| State | COL Index | Effective Boost | Notes |
|---|---|---|---|
| Alaska | 104 | +0% vs 0% | High COL offset by no sales tax in some areas |
| Florida | 97 | +0% vs 4-5% | Popular for retirees; rising property insurance |
| Nevada | 99 | +0% vs 4-5% | Las Vegas metro more affordable than Reno |
| New Hampshire | 106 | +0% vs 5% | No wage tax; interest/dividends tax ended 2025 |
| South Dakota | 93 | +0% vs 4-5% | Lowest COL among no-tax states |
| Tennessee | 90 | +0% vs 4-5% | Low COL + no income tax = high purchasing power |
| Texas | 93 | +0% vs 4-5% | High property taxes partially offset the benefit |
| Washington | 108 | +0% vs 5-7% | High COL; tech salaries compensate |
| Wyoming | 95 | +0% vs 4-5% | Low COL + no income tax = excellent value |
How to Compare Salaries Between States
| Step | Action |
|---|---|
| 1 | Find the COL index for both states |
| 2 | Calculate: New Salary ÷ New COL × 100 = Adjusted salary |
| 3 | Compare adjusted salaries (not raw numbers) |
| 4 | Factor in state income tax differences |
| 5 | Check housing costs specifically (biggest variable) |
Example: $80,000 in Texas (COL 93, no state tax) vs $100,000 in California (COL 135, ~9% state tax):
- Texas adjusted: $80,000 ÷ 93 × 100 = $86,021 purchasing power
- California adjusted: ($100,000 - $9,000 tax) ÷ 135 × 100 = $67,407 purchasing power
- Texas wins by ~$18,600 in real purchasing power
Quick Reference Table
| Category | States |
|---|---|
| Best value (low COL + no tax) | Tennessee, South Dakota, Wyoming, Texas, Florida |
| Highest salaries (raw) | California, New York, Massachusetts, Washington, New Jersey |
| Highest purchasing power | Texas, Tennessee, Florida, South Dakota, Indiana |
| Most expensive | Hawaii, California, Massachusetts, New York, DC |
The Bottom Line
Stop comparing raw salary numbers across states — a $60,000 salary in Tennessee gives you more purchasing power than $90,000 in California once you factor in taxes and cost of living. The “best” state for your salary depends on your career field (some jobs are concentrated in high-cost metros), family situation, and lifestyle preferences. Use the state-by-state guides linked above to see exactly what your salary buys where you live.
Sources
- U.S. Bureau of Labor Statistics. “Occupational Employment and Wage Statistics, May 2024.” bls.gov/oes
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