10 States Where $80K Gives an Upper-Middle-Class Lifestyle
It may seem like reaching the upper middle class requires a six-figure salary, but that’s not always the case. Differences in housing costs and other expenses mean the same income can have different buying power depending on your ZIP code.
In some states, an $80,000 salary is enough to pay the bills, go on an annual family vacation and even set aside for savings or fund retirement accounts. In other states, it may not be enough to cover the basic cost of living. Here are the states where $80,000 qualifies as upper middle class and what’s driving that difference. Find out below which states consider $80,000 as an upper-middle-class salary.
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What Is the Upper Middle Class?
There’s no set amount of money that defines the upper middle class. Experts often use income ranges and organizations like Pew Research define class based on household income, household size and local cost of living. This means that salary can place someone in different income tiers depending on where they live.
In a Reddit discussion, users wrote that it has less to do with hitting a specific salary and more to do with financial security. One commenter wrote that the upper middle class “still has to work to support itself, but is also accumulating assets.”
The upper middle class is also the largest income group in the U.S., according to the American Enterprise Institute. About 31% of U.S. households earn enough to be classified as upper middle class.
The organization also defined classes by family size and income. To be upper middle class, a single-person household would need to earn at least around $77,000 per year. Meanwhile, a family of four would need to bring in almost $154,000 annually to be considered upper middle class.
10 States Where $80K Could Provide an Upper-Middle-Class Lifestyle
An $80,000 salary can stretch much further in some states than others. According to the most recent data from the U.S. Census Bureau, the median income nationwide is $81,604. The states below stand out for their lower costs of living and below-average median household incomes.
Mississippi
Median household income: $59,127
West Virginia
Median household income: $60,798
Louisiana
Median household income: $60,986
Arkansas
Median household income: $62,106
Kentucky
Median household income: $64,526
Oklahoma
Median household income: $66,148
Alabama
Median household income: $66,659
New Mexico
Median household income: $67,816
Missouri
Median household income: $71,589
Tennessee
Median household income: $71,997
Why Some States Are More Affordable
Americans typically spend 30%, oftentimes more, of their gross monthly income on housing, according to the Bipartisan Policy Center. But it’s not the only one.
"Housing is the headline, but the factors people forget add up fast: state income tax, property and sales taxes, car dependency and commute costs, childcare and health insurance," said Ralph Estep, Jr., licensed public accountant and founder of Saggio Management Group. "In a low-cost, low-tax state, $80,000 can feel genuinely comfortable. In a high-tax coastal metro, that same salary can feel like treading water."
Is $80K Enough?
Whether $80,000 per year is enough depends less on the salary itself and more on what that money can buy where you live.
“The number on your paycheck tells you almost nothing on its own. What determines whether $80,000 buys an upper-middle-class life is what lands in your account and what that money buys where you live,” Estep Jr. explained. “Two people earning the same $80,000 in two states can be living completely different lives.”
He also pointed out that the biggest misconception is judging whether your income is enough by your gross salary rather than by local purchasing power.
“It's not what you make, it's what you keep and what that money actually buys where you live,” he added. ”I'd rather someone earn $80,000 where a dollar stretches than $110,000 where it evaporates.”
This article was provided by MoneyLion.com for informational purposes only and should not be construed as financial, legal or tax advice.
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