What is considered a good salary in the US in 2026?

Nationally, a 'good' individual salary is $65,000-$80,000, which puts you above the median individual income (~$60,000). However, this varies dramatically by state. $65,000 is excellent in Mississippi (where median household income is ~$52,000) but barely adequate in California (median household ~$85,000). Cost of living is the decisive factor.

What is the cheapest state to live in?

Mississippi has the lowest cost of living in the US, followed by West Virginia, Arkansas, Oklahoma, and Alabama. In Mississippi, a salary of $50,000-$55,000 provides a comfortable middle-class lifestyle. The same standard of living would require $90,000-$100,000+ in California or New York.

Which states have no income tax?

Nine states have no state income tax: Alaska, Florida, Nevada, New Hampshire (no wage tax), South Dakota, Tennessee, Texas, Washington, and Wyoming. This effectively gives you a 5-13% raise compared to high-tax states like California (13.3% top rate) or New York (10.9% top rate).

Does a higher salary always mean more take-home pay?

No. A $100,000 salary in Texas (no state income tax, low COL) gives you significantly more purchasing power than $130,000 in New York City (10.9% state tax, 3.88% city tax, high COL). After taxes and cost of living adjustments, the Texas salary often wins.

How do I compare salaries between states?

Use this formula: Adjusted Salary = Salary × (100 ÷ COL Index). A $60,000 salary in Mississippi (COL index ~85) has the same purchasing power as ~$70,600 in an average-cost area. Compare adjusted salaries, not raw numbers, when evaluating job offers across states.

What Is a Good Salary in Every State? (2026 Guide)

For role-by-role compensation benchmarking and career income strategy, see the Profession Salary Guides hub.

For conversion formulas, overtime scenarios, and annual-pay planning, see the Hourly to Annual hub.

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

Written by WealthVieu

WealthVieu researches and writes data-driven personal finance guides using primary sources including the IRS, Bureau of Labor Statistics, Federal Reserve, and Census Bureau.

The content on Wealthvieu is for informational purposes only and should not be considered financial, tax, or investment advice. Consult a qualified professional before making financial decisions. Full disclaimer · Editorial policy