Is $58,000 a Year a Good Salary for You?

An annual income of $58,000 offers vastly different living standards across the United States, depending on personal and external circumstances. Its value is a dynamic measure influenced by numerous factors. This article explores the elements shaping the purchasing power of $58,000, provides budgeting strategies, and benchmarks this income against national averages.

Factors Influencing Income Value

The value of a $58,000 annual income is heavily influenced by geographic location, which significantly impacts the cost of living. Expenses like housing, utilities, and transportation vary widely between high-cost urban centers and more affordable rural or suburban areas. For instance, a one-bedroom apartment in New York City can average over $4,100 per month, while similar housing in a lower-cost region might be significantly less, impacting disposable income.

The industry and level of experience also determine if $58,000 is a competitive salary. For an entry-level position, this income could be strong. Conversely, for a mid-career professional in a specialized or high-demand industry, $58,000 might be below average for their skills and experience.

Educational attainment and specialized skills also contribute to income expectations. Professions requiring advanced degrees or unique technical expertise often command higher salaries, making $58,000 a modest income for those roles. However, for occupations where a bachelor’s degree or specific certifications are typical, this income might align with industry standards.

An individual’s personal financial situation, including debt obligations and family size, directly affects how far $58,000 can stretch. Student loans, credit card debt, or supporting dependents can substantially reduce disposable income. These commitments dictate how much gross income remains for discretionary spending and savings after essential bills are paid.

An income of $58,000 is a gross figure, meaning it’s earned before deductions. Various taxes, including federal, state (if applicable), local, and Federal Insurance Contributions Act (FICA) taxes, reduce net take-home pay. FICA taxes, which fund Social Security and Medicare, are withheld at a combined rate of 7.65% for employees.

Budgeting with $58,000 Annually

Effectively managing a $58,000 annual income begins with calculating net take-home pay. This involves subtracting deductions like federal and state income taxes, FICA taxes, health insurance premiums, and retirement contributions. After accounting for FICA and estimated federal income taxes, other deductions further reduce usable income. Health insurance premiums and retirement contributions are commonly deducted. Once all deductions are considered, net pay for living expenses and savings will likely fall in the range of $40,000 to $45,000 annually, or approximately $3,300 to $3,750 per month. This figure represents the true financial foundation for budgeting.

Allocating funds for essential expenses is the next step in creating a functional budget. Housing, utilities, food, and transportation typically consume a significant portion of income. Housing costs, whether rent or mortgage, often represent the largest single expense, potentially ranging from 25% to 35% of net income, depending on local cost of living. Utilities, including electricity, water, and internet, along with groceries and transportation, must also be factored in.

Beyond essentials, a budget for $58,000 annually should include provisions for discretionary spending and savings. Discretionary funds cover non-essential items like entertainment, dining out, and hobbies. Dedicating a portion of income to savings goals, such as an emergency fund, retirement accounts, or a down payment for a home, is crucial for financial security and future planning. Financial experts often suggest saving 10% to 15% of gross income for retirement.

Managing existing debt is another important aspect of budgeting with this income level. Strategies include prioritizing high-interest debts, like credit card balances, or making payments above minimums on student or car loans. Creating a personalized budget involves tracking income and expenses to identify where money goes and where adjustments can be made. This monitoring allows for informed financial decisions and helps ensure spending aligns with financial goals.

Income Comparison and Benchmarking

To contextualize an annual income of $58,000, compare it against broader U.S. economic statistics. In 2024, the median individual income was approximately $50,200, while the average was around $73,471.51. This places $58,000 above the median for individual earners, suggesting it is higher than what half of all individual workers earn.

When considering household income, the national median in 2024 was approximately $80,020, and the average was $114,395.26. If $58,000 represents the total income for a single-person household, it falls below the median. However, if it contributes to a multi-earner household, its impact on overall household income changes.

An individual earning $58,000 annually typically falls around the 40th percentile of individual incomes in the U.S. This means approximately 40% of individual earners make less than $58,000, while 60% earn more. This highlights its position within the overall income distribution.

Income averages vary significantly by industry. A $58,000 salary might be competitive in service-oriented or entry-level positions. Conversely, in highly compensated fields like technology, finance, or specialized healthcare, this income level would generally be below average for experienced professionals. The median weekly earnings for full-time workers in the first quarter of 2025 were $1,194, translating to about $62,088 per year, placing $58,000 slightly below this national median for full-time employment.

These national comparisons provide a general benchmark, but the real-world value of $58,000 is heavily influenced by local economic conditions and cost of living. States and metropolitan areas with higher costs of living, such as the Northeast or West Coast, would find $58,000 providing less purchasing power than regions with lower expenses, like the South or Midwest. For instance, per capita personal income in Washington D.C. was over $108,000 in 2024, while in Mississippi, it was about $52,000, illustrating vast regional differences.