Salary Blues? Here’s How Much Money You Need To Make To Have an Average Salary in Your State

Are you finding it hard to keep up with the Joneses? If so, it could be you’re earning a lower-than-average salary for your state. Alternatively, perhaps the shiny things in your neighbors’ driveways are masking their own financial struggles.

Regardless of what your neighbors are up to, many Americans are facing a harsh truth: even as inflation cools down, the cost of living isn’t decreasing.

So, a strong salary is more important than ever. Using data from the Bureau of Labor Statistics, we’ll show you if your income is on par with the average for your state.

Determining Average Salary

Forbes did a deep analysis of the cost of living by state in 2024. As part of their study, they used salary data from the Bureau of Labor Statistics (BLS).

While the BLS’ salary data is from May 2022, it was the most recent information available at the time of Forbes’ study.

Without further ado, these are the average salaries Americans from each state are earning.

Massachusetts For the Win

Not only do Massachusetts residents have the highest annual average wages in the country, but they also have the third highest disposable income in America, with $22,740 of spending money left each year after accounting for cost of living expenses (housing, healthcare, taxes, food, and transportation).

Impressively, Bay Staters get to enjoy their $22,740 disposable income despite shelling out $53,860 per year on basic living expenses. So, even though Massachusetts has the second-highest cost of living in the nation, it’s a prime example that a state’s cost of living alone doesn’t paint a full financial picture.

Mississippi Struggles

Mississippi is essentially the exact opposite of Massachusetts from a salary and cost of living perspective. Not only does the Magnolia State rank the worst in the nation for a low salary, but it ranks 49th in the U.S. for disposable income.

After taking into account an average total cost of living of $32,336, which is the lowest cost of living in the country, Mississippians only have $12,844 left in annual disposable income.

Lower Pay

In March 2024, the BBC reported that many Americans looking for jobs are encountering lower wage offerings than in the past. That echos data from a 2023 ZipRecruiter study, which revealed that of the 2,000 companies they surveyed, 48% of those companies had lowered pay for certain positions.

While seeing lower salary offers when looking for a job — or receiving a pay cut on the job — is understandably unsettling for Americans, some experts suggest it’s normal.

The reason? Due to the COVID-19 pandemic, many job sectors were having trouble finding help during what some are calling the Great Resignation. During that time, many employers raised salaries higher than what would normally be the going rate in order to attract employees.

How Much Money It Takes To Be in the Top 10%

Whether you dream of being in the top 10% or think you might already be there, one thing is certain: The income a household makes to be in the top 10% club varies by state. Here’s how much you need to make to have a higher income than 90% of Americans in your state.

How Much Money It Takes To Be in the Top 10% by State

10 US Cities Where $100,000 Stretches the Furthest

$100,000 in annual income may sound like a lot to many Americans. But depending on where you live, that might as well be chump change. These are the cities where you can make the most of $100k.

10 US Cities Where $100,000 Stretches the Furthest