Is $28,000 a Good Salary? Breaking Down the Numbers

The concept of a “good” salary is not universal; its meaning changes dramatically based on an individual’s circumstances, geographical location, and financial aspirations. What one person considers sufficient, another might find inadequate. There is no single answer to whether a $28,000 annual salary is desirable, as its value is always relative to its context.

Understanding “Good” Salary

The determination of whether a $28,000 annual salary is considered adequate hinges on several interconnected factors. Geographical location plays a substantial role, as the cost of living varies significantly across the United States. Housing expenses, whether rent or a mortgage, represent a primary differentiator, with urban centers and high-cost states demanding much higher outlays than rural areas or states with lower living expenses. For instance, the average monthly rent for a one-bedroom apartment nationally was around $1,559 in December 2024, but this figure can be considerably higher in major metropolitan areas, reaching over $4,000 in some cities.

Beyond housing, the cost of utilities, transportation, and daily necessities like groceries also fluctuates geographically. An income of $28,000 would stretch further in a region where these fundamental costs are lower, allowing for more financial flexibility. In contrast, in areas with elevated expenses, the same salary could barely cover basic needs, leaving little to no room for savings or discretionary spending.

Personal financial commitments further influence the perceived value of a $28,000 salary. Existing obligations such as student loan debt, credit card balances, or medical bills can consume a significant portion of income, regardless of location. These fixed payments reduce the amount of disposable income available for other expenses or savings goals.

The size and composition of a household also directly impact the sufficiency of any income. A single individual without dependents faces a different financial landscape than someone supporting children or elderly parents. Adding dependents introduces additional costs for food, healthcare, childcare, and education, which can quickly strain a $28,000 annual income. The desired standard of living and personal spending habits, such as a preference for dining out or frequent travel, also shape an individual’s perception of their salary’s adequacy.

The Reality of $28,000 Annually

An annual gross salary of $28,000 translates to a specific amount of take-home pay after various deductions. The initial step in understanding this reality involves distinguishing between gross income, which is the total earnings before deductions, and net income, the amount received after taxes and other withholdings. For a single individual, federal income tax, state income tax (if applicable), and Federal Insurance Contributions Act (FICA) taxes are withheld from each paycheck.

In 2024, FICA taxes, comprising Social Security and Medicare, collectively account for 7.65% of an employee’s gross wages. For a $28,000 annual salary, this amounts to $2,142 in FICA taxes. For federal income tax, a single filer in 2024 would fall into the 10% and 12% tax brackets. After accounting for the standard deduction, a significant portion of a $28,000 salary would not be subject to federal income tax, resulting in a relatively low federal income tax liability. State income tax rates vary widely, with some states having no income tax and others having progressive rates. Considering these deductions, a $28,000 gross annual salary for a single individual might result in a net take-home pay of approximately $23,000 to $25,000, or roughly $1,900 to $2,100 per month.

Allocating this net income to essential expenses highlights the tight financial margins for many individuals. Housing is often the largest expense; with the national average monthly rent for a one-bedroom apartment being around $1,559 in late 2024, a significant portion of the monthly net income would be dedicated solely to shelter. Utilities, including electricity, water, gas, and internet, can add another $433 to $600 per month to household costs.

Food is another substantial expenditure, with a single person’s average monthly grocery bill ranging from approximately $238 to $434. Transportation costs, encompassing car payments, insurance, fuel, or public transit fares, further reduce available funds. Healthcare co-pays and prescription costs also represent recurring expenses that can be unpredictable. After covering these necessities, the remaining discretionary income for an individual earning $28,000 annually is often very limited, making it challenging to build savings, manage unexpected expenses, or pursue non-essential activities.

Comparative Income Context

Placing a $28,000 annual salary within broader economic benchmarks provides a clearer perspective on its standing. The median individual income in the United States was approximately $50,200 in 2024, meaning that half of all individual earners made more and half made less than this amount. The median household income in the U.S. was around $80,020 in 2024. An individual earning $28,000 annually is significantly below both national median figures, indicating that this income level falls into the lower half of the income distribution for both individuals and households.

The federal poverty line offers another important point of comparison. For a single individual, the federal poverty guideline was $15,060 in 2024 and $15,650 in 2025. For a two-person household, the figures were $20,440 in 2024 and $21,150 in 2025. An annual income of $28,000 places a single individual well above the federal poverty line but a two-person household somewhat closer to, or potentially slightly above, the poverty threshold.

When converted to an hourly wage, a $28,000 annual salary, assuming a 40-hour work week and 52 weeks per year, translates to approximately $13.46 per hour. This is significantly higher than the federal minimum wage of $7.25 per hour, which has remained unchanged since July 2009. However, many states and localities have established their own minimum wages that exceed the federal rate, with some reaching $15 per hour or more. In areas with higher state or local minimum wages, a $13.46 hourly rate might be closer to the local minimum, providing less of a financial buffer.

The concept of a “living wage” further contextualizes a $28,000 salary. A living wage represents the income level required to cover basic necessities, such as housing, food, transportation, and healthcare, without relying on public assistance. These figures are calculated for specific geographic areas and vary based on household size. While there is no single universally accepted living wage, estimates for many regions in the United States suggest that an income of $28,000 would likely fall below what is considered a living wage for a single adult, and certainly for a household with dependents, in many parts of the country.