Is Dallas calling your name with its youthful vibe, booming economy, and vibrant culture? You aren’t alone. People around the country are heeding the call and moving to the city. However, it isn’t all roses and rainbows. You need an above-average salary to live comfortably. So, what is a good salary in Dallas, Texas?
What Is a Good Salary In Dallas, Texas?
A salary in Dallas is about $24.02 per hour or $48,040 a year for a single person. This can afford you a decent bedroom apartment and other basic needs. However, according to Data USA, the city’s median household income is $54,747 annually.
The cost of living in the Big D is 13% higher than the state average and 4% higher than the national average. However, thanks to Texas tax policies, you can live comfortably with an average salary in Dallas. Without rent, a family of four could live on about $3,959 a month. If you are single, you’d need about $1,104 without rent.
Factors That Determine a Good Salary in Dallas, Texas
Since everyone has unique needs, it is impossible to put a specific figure on a good average salary in Dallas. What is great for one person might not be good for another.
The following factors will help you to determine the most appropriate income for you in Dallas, Texas.
The average salary in Dallas generally ranges from $48,051 to $81,040. However, the type of work you do will largely determine how much income you earn from your job. The best-paying occupations in Dallas include:
- Medical practitioners
- Flight engineers, airline pilots, and co-pilots
- Engineering and architectural managers
- Marketing managers
- Software engineer
In Dallas and Texas in general, ‘Technical Occupations’ and ‘Healthcare Practitioners’ groups have some of the best-paying jobs. Other industries with the highest-paying jobs include:
- Real estate
- Management consulting (Such as a project manager)
- Financial services
- Machinery manufacturing
If you have no degree or prior work experience, there are plenty of entry-level occupations with decent salaries and benefits. Here are a few of them and their estimated annual salaries:
- Yard manager – $62,305
- Plant supervisor – $65,603
- Construction project manager – $77,054
- Power plant operator – $79,930
- Real estate agent – $104,559
If you prefer part-time jobs, the average salary is $13 per hour or $27,656 per year. However, with some jobs, you earn as much as $51,838 annually or as low as $13,823.
The best-paying part-time jobs in Dallas, Texas, include:
- Part-time engineering – $63,084
- Part-time financial assistant – $41, 519
- International office assistant – $42, 411
- Assistant office operations – $45,012
Cost of Living
The cost of living in Dallas is 4% higher than the national average and 13% higher than the state average. Housing is 3% higher than the national average, and the cost of food is 2% lower than the national average. Transportation is also more expensive than in other cities.
Dentistry, regular doctor check-ups, and other healthcare services cost 13% more than the national average.
Safe neighborhoods with less than median rent in Dallas include:
- Cedar Crest
- Forest Hills
- Lake Highlands
- Five Mile Creek
- Oak Lawn
The median rent for a two-bedroom apartment is $2,509. However, you can find cheaper options in these neighborhoods, especially if you earn a minimum wage.
If you prefer to live in an elite neighborhood, your options include the following:
- Victory Park
- Design District
- Preston Hollow
- Arts District
The median rent for a two-bedroom apartment in Victory Park is about $5,337. Here are a few basic items and their average costs in Dallas, Texas:
- Bread – $3.67
- Steak – $12.51
- Eggs (dozen) – $1.38
- Gasoline(gallon) – $2.59
- Dry cleaning – $14.33
Texas doesn’t impose a state income tax. This means you’ll only need to pay federal income taxes. Dallas doesn’t have a local income tax, either. However, your annual or hourly wage may not accurately indicate how much you’ll take home.
You and your employer contribute 6.2% of your earnings to Social Security taxes. In addition, 1.45% of your pay goes to Medicare taxes. It also comes from your paycheck if you pay for any employer-sponsored health insurance. Medical expense accounts and retirement accounts are deducted from your pay before taxation.
Consider filing a fresh W-4 if you believe too much money is being withheld from your paycheck. You can do this anytime, and Dallas employers are generally willing to help.
Your Financial Goals
What are your financial goals? Are you one to spend Elon Musk’s money, or do you prefer to set some aside for a rainy day? Your goals and lifestyle determine what would qualify as an average salary in Dallas, TX. With over $51,131, you can live comfortably and still have something to save.
Most salaries in the Upper-Class group range from $38,014 to $66,155. The top earners make an average salary of $81,953 annually. Such jobs would be fantastic for big spenders or Dallas dwellers looking to secure financial freedom.
If you are looking for a salary to meet your basic expenses, a good starting point is $48,040. It secures you occasional luxuries and a home in a decent neighborhood.
If you have a family, housing is your most significant expense in Dallas, TX. The cost of housing here is 4% higher than the national average, according to Rent Cafe. While a one-bedroom costs about $1,201 per month, you would need over $2,500 for a two-bedroom apartment in a decent family-friendly neighborhood.
If you have a family of four, you will need to earn an average salary of around $75,000 annually. However, this will depend on what it takes to be ‘comfortable.’ This is a good salary for most households and can afford a decent house in a quiet neighborhood and a few luxuries.
For families with one child and one parent, the livable wage is about $33.62. The median price for listing a family home in Dallas is $399.9k. However, it varies depending on your neighborhood. Dallas has one of the most affordable real estate markets in Texas.
There is no substitute for experience. It is critical in determining how much pay you deserve and increases your negotiating power. Dallas employers, such as Texas Instruments, pay experienced professionals much more than rookies.
In addition to your experience, your salary must also match your reputation and the value you offer your employers. Usually, more experience comes with a better reputation if you are good at your job.
Employers are excited to benefit from your networks and expertise and will pay top dollar for them. Usually, 10+ years’ experience places you on the top earners’ list within your occupation. With one year of experience or less, you’ll be eligible for an entry-level salary.
If you aren’t experienced, you can improve your negotiation power by highlighting your education.
Is $100K a Good Salary in Dallas?
Thanks to Texas ‘ no-state tax policy, $100k is a good salary in Dallas. It is above the average salary of $65,289 and almost double the family’s median household income. With this salary, you can enjoy living here and even start a business.
What Part of Dallas Is the Cheapest?
The cheapest parts of Dallas include Wynnewood, Cedar Crest, and Five Mile Creek. These neighborhoods are great options if you earn a minimum wage and looking to pay less than the median rent in Dallas, TX.
The population in Dallas has grown significantly in the last decade, with people around the world moving here. It is an excellent place to work and live. If you plan on moving to this Texas city, consider your lifestyle, experience, occupation, and dependents as you negotiate your salary. A good salary depends on your unique needs and financial goals.