Is a $75K Salary Good?

Earning $75,000 a year sounds pretty exciting. Well, if you just got a job that pays this annual salary, you must be wondering if it is good enough for you. So, is a $75K salary good? Will it be enough to curb the high cost of living? Let’s find out.

Is a $75K Salary Good?

Yes, a $75K annual salary is good for most households. Even after the federal and state income taxes, you will have enough to pay for basic expenses in most cities comfortably However, in some expensive cities such as New York, this might not be a good income considering the high cost of living.

Dollar bills folded and planted on soil

If you are a single person or a couple without dependents, living on this salary will be much easier than if you are a family. As a family, the more children you have, the more money you will need. In fact, analysis by the US Department of Agriculture shows that it takes an average of $17,000 a year to raise a child until they turn 18.

How to Determine if a $65K Salary Is Good for You

According to the latest statistics by Pew Research Center, a $75,000 salary is a middle-class income and should enable you to cover most expenses. You can live even more comfortably if your employer offers any additional benefits. 

While this means that it is a good salary since you are making more than the average American family, it does not automatically mean that with this annual income, you will be able to live comfortably.

Here are the factors that will determine if $75,000 a year is a good salary for you:

  • Where you live
  • Number of dependents
  • How much debt you have
  • Your spending habits
  • Your career level
  • Your financial objectives

Where You Live

The latest data from the U.S. Census Bureau shows that the median household income is $70,784. This places a $75,000-a-year salary right at this optimum level, meaning it should take care of basic necessities such as housing, food, clothing, and transportation, plus other personal expenses.

However, depending on where you live, a $75K annual salary can do much more or be very limiting. Living in expensive cities comes with the extra financial burden, especially when it comes to housing and taxes.

Various kinds of dollar bills spread out on a table

For example, in New York, your take-home pay from a $75,000-a-year salary will be $55,839 based on estimated taxes as shown below:

Annual Salary$75,000
Federal Income Tax$9,268
State Income Tax$3,741
Social Security$4,650
State Disability Insurance$31.20
Family Leave Insurance$383
Net Salary $55,839

On the other hand, if you live in Florida, which does not impose state taxes, your take-home pay from a $75,000-a-year salary will be $59,995 after paying federal income taxes and other statutory deductions as shown below:

Annual Salary$75,000
Federal Income Tax$9,268
Social Security$4,650
Take Home Pay$59,995

The difference between living in these two states does not stop in how you pay taxes yet extends to the living costs as living in New York is on average 24% more expensive than Florida.

The Number of Dependents

While $75,000 a year is a good salary and a lot more than if you are earning 30K per year, if you have many dependents, this income might not be sufficient to cater to all your needs, especially if you live in an expensive city.

If you are a family of four or more, this salary will only be sufficient if you live in an affordable city with a low cost of living. Otherwise, you might have to find some side hustles such as being a freelance writer or copywriter in your free time. 

However, if you are a single person or couple without any dependant, this is a great salary that will enable you to live comfortably.

How Much Debt You Have

Besides evaluating the cost of living in your city, it is equally vital to consider your financial situation to know whether a $75K salary will be good for you. 

If you have a huge student debt and a considerable amount of loans or monthly payments that amount to more than $75,000, it will be hard to get by with this salary.

On the flip side, if you do not have much debt, $75,000 a year will be sufficient to cater to your needs and even double your savings and investments over the years.

Your Spending Habits

Your lifestyle also plays a primary role in determining whether making a $75,000 annual salary is good for you. If you have limited personal finance knowledge and love to splurge on luxuries and hardly have control over your expenses, this salary might be insufficient. 

You will likely be in deep debt, especially if you live in an expensive city. To take control of your spending habits, it is important to create a monthly budget. Your budget should factor in your disposable income and follow the 50/30/20 budgeting rule.

This way, 50% of your money goes to basic living expenses, 30% caters to your wants & personal expenses, and 20% goes to your savings and investments. 

Woman wearing a suit with her arms crossed while standing in front of a conference room table

Your Career Level

Very few jobs will offer you $75,000 a year as an entry-level salary. However, if you are in an industry that can offer this amount, then this is a great salary as, in a few years, you will probably be earning much more, you might even get to earn $250,000 a year.

For most people in this income level, this is an annual salary you earn after a considerable years of experience. Nevertheless, if this will be your average pay for most of your career, it is vital to consider attaining high-demand skills or professional certifications that can enable you to ask for pay increases.

 If you run your own business and make $75,000 a year, you are definitely on the right path and with more focus, you can earn much more than this. 

Your Financial Goals

When determining if a $ 75,000-a-year salary is good for you, it is crucial to consider your financial goals. This means looking beyond the amount that hits your bank account and prioritizing what you want to achieve in the coming years.

Do you want to own a home with a $75K salary? Or would you like to make more money through investments?

Depending on these objectives, earning $75000 might be a good pay or not, depending on where you live and your family size and these two factors significantly impact your expenses.

Related Questions

Is $75,000 a Year a Good Salary for a Single Person?

A $75K annual salary should be sufficient for a single person. Even after paying income taxes and other statutory deductions, this salary can cater to all expenses and be enough to help build your savings and investments.

What Percentage of Americans Make Over $75K?

The latest data by Statista shows that 11.9% of American households earn between $75,000 and $99,999 a year. Cumulatively, households in this income level make much more than 52.3% of the working population.


A $75K salary is a good amount of money to make annually and it can enable you to live in comfort. Nevertheless, with the fast-rising cost of living, you have to consider the average salary in your city, your lifestyle, whether or not you have a family, and your current financial situation to determine if this income will be sufficient for you.

Jared Bauman is the owner and editor of He has started and sold several companies, along with owning several investment properties. His interest in personal finance started as a young kid, developed through his entrepreneurial ventures and real estate investments, and continue through his conversations with friends and colleagues.

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