Is 100K a Good Salary In 2022 In The United States?

Is 100K a Good Salary In 2022 In The United States?

is 100k a good salary

There is not a single person I’ve met that doesn’t want to make a lot of money and become financially independent. And for those who are already making $100,000 a month, the craving and need to make even more if often imminent. But is 100K a good salary?  

100K is a decent income for a single person and for a family of up to three or four people. Depending on where you live, what your needs are, and the average tax rate in your state is $100,000 should be sufficient to cater for all the bills throughout the year.

Demography and the cost of living are the two most important factors that determine whether 100K is a good salary.

In Tamaqua, Pennsylvania, for example, the average annual cost for a rented home is roughly $46,500 per year. As such, an annual salary of $100,000 should be quite good.

It’s a different case altogether if you live in a state such as Los Angeles, where the median price for a home is $690,000 a year, not to mention the extremely outrageous tax rates.

Do you see where we’re going with this?

In other words, the only way to determine whether you can live well on a $100,000 salary every year is to check whether you can keep up with the cost of living in the states.

How Much Do You Take Home for a 100K Per Year Salary?

It’s important to understand that someone who makes $100,000 a year doesn’t that’s the exact amount of money they take home.

actual salary for 100K

The amount deducted is often less after deductions or contributions. In other words, you have to pay Social Security tax, Medicare tax, and Federal Income tax on a monthly basis.

More often than not, an individual with a gross annual salary of $100,000 per month will take home about $5,940 per month. 

Is 100K a Good Salary for a Single Person?

To know whether 100K is a good salary for a single person, you need to understand what one could consider a high salary in the first place.

You need to make at least $90,000 a year to consider yourself a middle to upper class earner if you live alone. And that means an income of $100,000 for a person living alone can make the cut.

In other words, 100K is a good salary for a single person, and that’s so provided they have a sensible spending habit.

As a single person, you’re taking at least $5,940 home depending on the tax rates in your state. If you live in an inexpensive state like West Virginia, where the average monthly rent for a two-bedroom house is about $2,500, you’ll have about $2,440 left to live on before your next paycheck.

If you’re the kind of person that wants to spend less and save more for future projects, living in a state such as Wichita, where the average cost of rent is $650, would be almost an overkill.

Is 100K a Good Salary for a Family in the United States?

A salary of $100,000 per year is good for a small family.

According to the US Census Bureau, the average household income in the U.S. is 73K.

100K family budget

While such a level of income means you’d have to commute instead of living in expensive cities such as San Francisco and Manhattan, at least you can do well if you live in states such as West Virginian and Michigan.

The key to living well as a family on a salary of 100K a year is to have a reasonable spending plan. Use the plan to spend on the most essential wants and need while saving at least 20% of the money for emergency or future use.

Demography is an important factor to consider if you earn $100K a year and you have a family that looks up to you.

While it would be great to live in an expensive city, you may struggle to make ends meet with an income of $100,000 a year.

Take San Francisco, Boston, and Manhattan, for example. The three are some of the most expensive states in the United States of America.

A study done by USA Today shows that the average cost of rent in Manhattan is $4,100 per month. Given that you take home $5,940 per month, you’d have only $1,840 to live on before the next monthly paycheck, so you won’t have enough money to take care of your family.

Even San Francisco and Boston are equally expensive. You’ll pay $500 less the value of rent in Manhattan and, still, you and your family won’t live well on what’s left.

The takeaway here is simple:

If you have a family that looks up to you, you make $100,000 a year, and you don’t have your own house yet, it’s best not to live in an expensive state such as Los Angeles, Las Vegas, DC, San Francisco, and Manhattan.

The best way to take care of your small family if you’re earning $100,000 a year is to live in a state where the cost of living is relatively lower – or at least affordable by your current standards.

Michigan, West Virginia, and Wichita are some of the inexpensive cities to live in. For what it’s worth, you’ll more than likely pay $650 for rent for a two bedrooms house, which can comfortably fit a family of three or four. So a salary of $5,940 per month (after tax deductions) should be good enough for the family.

Is 100K a Good Salary in USA?

100K can be a good annual income in the United States of America depending on where you live.

100K salary in USA

For example, someone who makes $90,000 annually can do just fine if they live in inexpensive states such as Indiana, Alabama, West Virginia, and Missouri, even after paying taxes.

It’s especially possible to do well with an income of $100,000 a year in the United States if you live alone. Even people who have families seem to make ends meet with a monthly income of $5,940 if they live in cheap states.

Just to reiterate, the current median household income in the U.S. stands at $67,500 at least. So whether you’re living by yourself or you have family of at least three, you’ll still have enough money to live comfortably by any standard of living. 

What Can You Afford with 100K Salary in the United States?

There really isn’t a straightforward answer to this question. But just to give you an idea, what you can afford with a salary of $100,000 a year depends on your demography, whether you’re single or have a family, and your kind of lifestyle.

Let’s say you live in Wichita, for example. What you can afford will probably look something like this:

  • House rent: $1,000
  • Car payment: $1,200
  • Bill: $1,200
  • Expenses: $600 
  • Savings:  $2,000

The scenario is just an example, but at least it gives you an idea of what you can afford with a salary of 100K.

If you don’t want to live in Wichita, but you want to ensure mortgage expenses are as low as possible, and especially if you want to save more money for important future projects, it would be best to consider an inexpensive state such as West Virginia.

Can You Become Rich If You Make $100K a Year?

The reason you work so hard or so smart is so that you become financially independent one day. And if you’re currently making $100K a month, it’s possible to wonder whether you can become rich with such a level of income.

Here’s the thing:

You never become wealthy based on the amount of money you make with every paycheck. Ask anyone who has achieved financial freedom and he or she will tell you it doesn’t matter how much money you make.

The key principle to becoming successful is to know how much money you can retain.

With that respect, understand that $100K is not a small amount considering the minimum hourly wage in the United States.

You should consider setting aside $10K to $20K a year every year and then allow the compounding interest to work for you.

What Type of Jobs Pay Over 100K A Year?

Making $100,000 a year can be a great way for you to start saving for the future and eventually become financially independent.

If you work in the medicine, legal, technology, healthcare, accounting, or project management industry, you’re more than likely to make at least $100,000 a year.

Examples of jobs that can earn you that much money include software development, IT management, law, nursing, petroleum engineering, and financial management.

Getting a job that pays you at least $100,000 a year can be quite an accomplishment. At least you’ll have a starting point to commence your journey to becoming financially independent and living the American dream. 

What Percentage of Americans Make Over 100K?

A study by Policy Advice shows that at least 15.5% of Americans made between $100,000 and $149,999 and at least 10.3% of the population doing over $200,000 the same year. The same study shows that at least 30.7% of households in the United States of America made over 100K annually in 2020 alone.

Keep in mind that the average annual salary will vary from state to state. Mississippi, for instance, has a lower average salary of roughly $41,776.

Final Thoughts: Is 100K a Good Salary? 

It’s important to remember that the minimum hourly rate in the United States of America is $7.7. Those who make $100K a year earn more than $40 an hour.

After all the tax or contribution deduction, you’ll have roughly $6,000 to live on per month, which is decent if you live in an inexpensive state such as Michigan, West Virginia, and Wichita.

The most important thing to do if you make $100,000 a year is to live within your means. Also, it’s important to develop a more reasonable spending habit, not mention save some money every month for the sake of your future. 

Keep in mind that how much you save every month will depend on your spending habits, where you live, how much money you invest, and the number of side hassles you currently have. 

Is 100k a year good for a family of 3?

In general, this is a good income for a family of 3 or more. Depending on where you live, what your needs are, and the average tax rate in your state, this income is enough to cover all your bills for a year.

What trade makes 100k a year?

There are many trades that have the potential to make $100k a year or more, depending on various factors such as location, experience, and demand for the particular trade. Here are some examples of trades that can potentially make $100k a year or more: Electrician, Plumber, Welder, HVAC Technician, Construction Manager.


Michel is an experienced blogger, youtuber and content creator in general. He has generated plenty of passive income streams, ranging from cents to four figures monthly income. His passion is sharing solutions to problems he encountered, to spread knowledge and make the world a more educated place.

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