Is $65,000 a Good Salary in Ohio?
Assess if $65,000 is a good salary in Ohio. This guide helps you understand its true value and what it means for your financial life.
A salary of $65,000 in Ohio prompts many questions about its adequacy for a comfortable life. What constitutes a “good” salary is subjective, influenced by individual financial situations, family size, and personal spending habits. Understanding Ohio’s objective financial landscape, including its cost of living, typical income levels, and tax structures, provides a clearer picture. This information helps assess how a $65,000 salary translates into purchasing power and lifestyle within the state.
Understanding Ohio’s Cost of Living
Ohio generally boasts a lower cost of living compared to the national average. Housing often represents the most significant monthly expense. Across Ohio, the average rent for a one-bedroom apartment is around $1,076 per month, while a two-bedroom averages about $1,349 per month. For homeownership, the median home price in Ohio was approximately $199,200 in 2023, with a median monthly home loan cost estimated at $1,429.
Beyond housing, essential utilities contribute to the monthly budget, with average costs ranging from $400 to $472 per month. Electricity bills average around $193 monthly, and natural gas averages about $148 per month. Internet service often falls between $50 and $80 each month. Actual costs can fluctuate based on usage, provider, and location.
Transportation is another substantial expense, with average annual costs for an individual estimated around $9,850. This includes fuel, vehicle maintenance, and car insurance, which averages about $152 per month for full coverage. Food costs for a single person typically range from $300 to $350 monthly for groceries. Healthcare expenses average approximately $6,845 per person annually.
How 65k Compares to Ohio’s Income Landscape
A $65,000 annual salary positions an individual within Ohio’s income framework. The median household income in Ohio was $69,680 in 2023. The median individual income in the state is around $56,111 per year, with the median salary for full-time workers at $57,763.
For single-person households, the median income stands at $36,730. An annual salary of $65,000 is notably higher than the median individual income, suggesting a stronger financial position for a single earner. For a multi-person household, $65,000 falls slightly below the state’s overall median household income. A household relying solely on a $65,000 income might require careful budgeting depending on dependents.
The Role of Taxes
Taxes play a significant role in determining the actual take-home pay from a $65,000 gross salary in Ohio. All income earners are subject to federal income tax. Ohio imposes a state income tax, which operates on a progressive system, with rates for a $65,000 income ranging from 0% to 3.50%.
Local income taxes are a significant consideration in Ohio, levied by many cities and municipalities. Over 400 cities and villages in Ohio collect their own income taxes, adding another layer of deduction from gross pay. These local taxes vary widely by location, significantly impacting net income.
In addition to federal, state, and local income taxes, payroll taxes (FICA) are mandatory deductions. These include Social Security tax and Medicare tax. Ohio also has a state sales tax of 5.75%, with combined rates reaching 8% in some areas due to county and regional transit authority levies.
Geographic Differences within Ohio
The purchasing power of a $65,000 salary in Ohio varies considerably by geographic region. Major urban centers like Columbus, Cleveland, and Cincinnati present a higher cost of living, particularly for housing. For instance, a one-bedroom in Columbus averages around $1,160, compared to the statewide average of $1,076. A $65,000 salary might feel less substantial in these metropolitan areas, where expenses are elevated.
Suburban areas surrounding these cities offer a middle ground, balancing urban amenities with slightly more affordable living costs. The cost of housing and other services in these areas can fluctuate.
Rural parts of Ohio have lower costs of living. In smaller towns, housing, groceries, and other daily expenses are often more modest, allowing a $65,000 salary to stretch further.
This regional disparity directly impacts the lifestyle achievable with the same income. In urban areas, a $65,000 salary might necessitate a more conservative budget, potentially limiting savings or residence type. In rural settings, the same salary could support a more spacious home, greater savings, or increased discretionary income due to lower overall expenses.