Making Money

The Reasons Why a $75k a Year Income is a Great Base Salary

Pinterest LinkedIn Tumblr

The reality is that not everyone gets to work in a location of their choice. Most jobs require you to stay close to home. More specifically, within the United States , most jobs are going to look for candidates from specific locations, and those locations can affect what your salary should be..

To understand what a good base salary is , we first need to take a look at the cost of living in each state. Below, you will find a list of all 50 states along with some base salary statistics.

Listed along with each state’s name is its designation from the Bureau of Economic Analysis (BEA). This number is critical for understanding your salary, because it can tell you how expensive your state is to live in. The higher the number, the more expensive the state is. For example, New York has a designation of 2, while Utah has a designation of 45.

Average Annual Income By State

-New York (2) : $75,592

-California (3) : $70,744

-Texas (4) : $67,436

-Florida (5) : $64,818

-Illinois (6) : $64,380

-Pennsylvania (9) : $63,966

-Ohio (11) : $62,473

-Michigan (12) : $60,628

-North Carolina (14) : $58,747

-Georgia (17): $57,687

-Virginia (18) : $57,532

-Washington (22) : $55,838

-Tennessee (26) : $54,361

-South Carolina (27): $52,772

-Missouri (29) : $51,576

-Indiana (30) : $49,446

-Arizona(34) : $48,535

-Kentucky (37) : $47,863

-Oklahoma (40) : $46,826

-Maryland (42) : $46,780

-Wisconsin (45) : $46,570

-Colorado(47): $45,580

So, what does this all mean?

First and foremost, it is important to realize that not everyone has the same cost of living. Your salary will be reflective of the area in which you live. For example, if you live in a state with a high cost of living, such as New York or California, your base salary should be higher than someone who lives in a state with a lower cost of living, such as Texas or Ohio.

Second, although there are some exceptions to this rule, the majority of the time your base salary should be related to your designation by the BEA.

How Much is 75k a Year Hourly?

Now that you understand the cost of living in each state, you can better assess what a good base salary would be for you.

To do this, we will need to convert the annual income to an hourly wage. This is easy to do by dividing the annual salary by 2000 (since there are 2000 hours in a year).

So, $75,592 a year is equal to $37.79 an hour.

How Much You Can Afford to Buy With a $75k a Year Salary?

Using our monthly mortgage calculator , you are able to see the maximum that you can afford for your housing costs.

The maximum amount that you can afford will be based on your monthly income, so if you want to understand what a good mortgage payment would be, you need to know how much money you make each month.

Converting an annual salary to a monthly salary is easy. To do this, divide the annual salary by 12 (since there are 12 months in a year).

This means that you can afford a mortgage of $1,291 a month. Keep in mind that this is the maximum that you can afford and does not mean that you should spend this much on your mortgage.

Conclusion:

Although this article focuses on base salary, you also need to take into account what your hourly wage is.

With the median income in the United States at $26.4k a year , it is difficult to live in some parts of the country; however, with an average base salary of $37.79 an hour, you should be able to live comfortably in most parts of the US.