Is $107k a Good Salary? How Far It Actually Goes

A salary of $107,000 raises questions about its adequacy for a comfortable life. What constitutes a “good salary” is not a simple, universal answer. It depends heavily on an individual’s unique circumstances and the broader economic landscape. Its true value is shaped by many factors, making its assessment a personal and complex endeavor.

Defining a Good Salary

A good salary provides financial security, allowing an individual to meet current obligations and progress toward long-term financial objectives. This includes covering essential needs like housing, food, transportation, and healthcare. Beyond necessities, it supports a desired quality of life, involving discretionary spending on leisure, education, or personal development.

The determination of a “good” salary is rooted in an individual’s financial responsibilities and aspirations. It involves having sufficient disposable income to build savings, contribute to retirement accounts, and manage or reduce debt. For some, this means comfortably affording a mortgage and raising a family. For others, it might prioritize aggressive investment strategies or early retirement. The concept remains fluid, adapting to life stages and evolving financial priorities.

Regional Cost of Living

Geographical location profoundly influences the purchasing power of a $107,000 salary. Housing costs, a significant budget portion, vary dramatically from affordable rural areas to expensive major metropolitan centers. For instance, $107,000 might allow for homeownership and a substantial lifestyle in a lower-cost region. However, it could barely cover rent for a modest apartment in high-cost cities like New York or Honolulu. Transportation expenses, including vehicle ownership, fuel, and public transit fares, also fluctuate based on urban density and infrastructure.

Daily expenses such as groceries, utilities, and local services are subject to regional pricing differences. States with higher property or sales taxes can further reduce disposable income. While some areas might offer a comfortable living on $107,000, others, characterized by high demand and limited housing supply, could make it challenging to maintain financial equilibrium. These regional variations mean the same salary can lead to vastly different financial realities across the country.

Industry and Professional Background

An individual’s industry and professional background significantly shape the perception of a $107,000 salary. This figure could be exceptional for an entry-level position in fields with lower average compensation. Conversely, it might fall below expectations for a mid-career professional or a senior role in high-paying sectors like technology, finance, or specialized healthcare.

For example, a professional with an advanced degree or specific certifications in a niche technological field might view $107,000 as a stepping stone, given the higher earning potential in their sector. In contrast, for someone in a field with more compressed salary bands, $107,000 could represent a top-tier earning. The context of one’s professional trajectory and typical compensation structure within their industry are important in evaluating this salary’s adequacy.

Personal Financial Outlook

An individual’s personal financial outlook substantially impacts how a $107,000 salary translates into their lived experience. Existing debt obligations, such as student loans, significantly reduce disposable income. For example, average monthly federal student loan payments range from $336 to $842, depending on the degree and repayment plan. Substantial credit card debt, with average interest rates from 20% to 25%, also creates considerable monthly interest charges that erode earning power.

Family size and dependents also alter the financial landscape. Supporting a spouse, children, or other family members introduces additional costs for housing, food, healthcare, and education. Childcare expenses alone can be substantial, averaging $400 to $1,500 per month for center-based care, or $5,000 to $18,000 annually for one child. A single individual with minimal debt and no dependents will experience a $107,000 salary very differently from someone supporting a family with significant financial responsibilities and multiple debt streams.

Benchmarking Against Income Data

Comparing $107,000 to broader income statistics provides an objective measure of its standing. In 2024, the median U.S. household income was approximately $80,020, while the average was around $114,395. This places a $107,000 salary above the median household income, suggesting it is a relatively strong earning for many households. For individual earners, the median weekly personal income for full-time workers in early 2024 was about $1,139, translating to roughly $59,228 annually.

A $107,000 annual income for an individual falls into the upper percentiles of earners. While specific percentile rankings vary, a $100,500 income was considered the 75th percentile for individuals working 40 or more hours per week in 2024. For households, a $101,000 income was at the 60th percentile in 2023, meaning a $107,000 salary is higher than 60% of household incomes. Federal income tax brackets for a single filer in 2024 indicate that a $107,000 taxable income falls into the 24% marginal tax bracket. Payroll taxes, including Social Security at 6.2% and Medicare at 1.45% (totaling 7.65%), are also withheld, further reducing take-home pay.