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The average salary in the United States is $69,846.57 per the Social Security Administration. So an income of $300,000 per year — more than four times that figure — is by most standards a great salary for a single person in 2026.

Of course, even a large amount of money can come up short if you don’t have a solid budget in place or if you lead a particularly expensive lifestyle.

Below, we’ll dive into various points to consider.

Is $300K a Good Salary?

If you’ve just been offered a job with this figure in its compensation package, you may well be asking yourself, “Is $300,000 a good salary for a single person?”

There’s really no one-size-fits-all answer to that question. While $300,000 per year is substantially more than most people, or even most U.S. households, make, whether it’s comfortable for you depends on your lifestyle choices and expectations.

Median Income in the US by State

You may also be wondering how much you make compared to your neighbors. According to the U.S. Census Bureau, the median household income in the U.S. in 2024 was $81,604, although this varies significantly by state, ranging between $59,127 in Mississippi and $102,905 in Maryland. However, nowhere in America does the median household income come anywhere close to $300,000 per year.

Average Cost of Living in the US by State

Just as median income varies significantly depending on which state you’re in, so does the state-by-state cost of living. This means that $300,000 can go a lot further in, say, Arkansas than in California.

While these figures are just averages, and the state-wide cost of living can vary substantially depending on which city you live in, here’s the average cost of living in each of the 50 states, according to data from the U.S. Bureau of Economic Analysis:

How to Live on $300K a Year

No matter how much you earn, figuring out how to spend (and save) your money takes effort and planning. Although it may seem like a six-figure salary should buy you whatever you want, if you don’t take the time to lay out how much money you’re actually taking home each month, and how much needs to be set aside for regular, necessary expenses such as housing, insurance, food, and utility bills, you could quickly find yourself eating into your savings or even spiraling into debt.

A money tracker is a great way to get a clear view of where your funds are really going. This can be a first step toward deciding where you want them to go, rather than allowing them to dwindle.

Recommended: Reasons High Earners Keep Living Paycheck to Paycheck

How to Budget for a $300K Salary

Whether you’re earning an entry-level salary or sitting in the C-suite, a little bit of budgeting can go a long way. But how?

The first step in budgeting is to determine how much money you earn each month, which, for someone earning a $300,000 salary, is about $25,000 before taxes are taken out. Because state taxes can vary significantly, you’ll need to look at your own pay stubs or do the math to determine how much is left, also known as your “net” income.

Once you know your net income, you can begin to deduct your regular, expected expenses. These can include housing payments, such as rent or mortgage, insurance, utility bills, and any other recurring expenses, such as your Netflix subscription. You should also set aside a budget for required monthly expenses that may vary slightly but are also critical, such as groceries, fuel, or other means of transport.

Now, you can subtract your monthly expenses from your monthly earnings to determine how much discretionary income you have left to do what you please with, including setting aside at least some of it for savings.

If this sounds like too much work, there are plenty of budget planner apps available that can make the process a breeze.

Maximizing a $300K Salary

Just because you earn a lot doesn’t mean you have to spend a lot, and if you’re careful with your over-average salary, you can save money for the future and help safeguard your lifestyle for the long run.

For example, if you saved just 10% of your $300,000 salary, that would be $30,000 per year into your emergency fund or investment account. If you do choose to invest it, that amount can really add up over a relatively short period of time, increasing your overall net worth and, potentially, even allowing you to retire early!

Quality of Life with a $300K Salary

Because a $300,000 per year salary is so much higher than the average cost of living in most states, most people who earn this much will be able to afford a very comfortable living anywhere they choose.

Of course, the money will go further in some places than others. For instance, $300,000 might afford you a small mansion in Mississippi, or an 800-square-foot apartment in Manhattan.

Is $300,000 a Year Considered Rich?

Given that the average salary in the U.S. is about 23% of $300,000, yes, many would consider a person earning $300,000 per year to be rich.

However, in most states, you’d need to make substantially more than $300,000 per year to be within the top 1% of earners. In fact, the states where you’d come closest are West Virginia and Mississippi, and even there, the top 1% earn at least $384,369 and $405,759 per year, respectively.

Is $300K a Year Considered Middle Class?

The amount of money you’d need to earn to be considered middle class varies depending on where you live. But according to the Pew Research Center, it’s between about $56,600 and $169,800 per year on average. Which is to say, no, $300,000 per year is not considered middle class in the vast majority of cities and scenarios.

Example Jobs That Make About $300,000 a Year

Don’t make $300,000 per year (yet), but you’re curious about how to make the dream a reality?

You might consider opening your heart to cardiology, which, according to data compiled by SoFi, offers an average salary of $432,490 per year. Medical positions feature prominently among the top-paying jobs, with surgeons, radiologists, dermatologists, emergency medicine physicians, and anesthesiologists all earning more than $300,000 per year.

The Takeaway

A salary of $300,000 is substantially higher than the national average and certainly a “good” salary for a single person in 2026, by most peoples’ reckoning. That being said, no matter how much you earn, bad financial habits can seriously affect you in the long run, so it’s well worth establishing a solid budgeting plan.

Take control of your finances with SoFi. With our financial insights and credit score monitoring tools, you can view all of your accounts in one convenient dashboard. From there, you can see your various balances, spending breakdowns, and credit score. Plus you can easily set up budgets and discover valuable financial insights — all at no cost.

FAQ

Can I live comfortably making $300K a year?

While everyone’s standard of comfort is individual, given how much higher $300,000 per year is than the average U.S. salary, yes, most people could live comfortably on that amount. However, establishing a budget is important, even for higher earners. Making a plan for your money helps ensure you know exactly where each dollar is going.

What can I afford with a $300K salary?

With a $300,000 salary, you could afford a lot of things. Depending on your overall applicant profile, this could include a home priced close to a million dollars, luxury vacations, or high-end toys and gadgets. But remember, a higher-than-average salary doesn’t preclude overspending or going into debt, so be sure to make a budget that accounts for all your necessary and discretionary expenses.

How much is $300K a year hourly?

For those who work 40-hour weeks for 50 weeks of the year, a $300,000 salary would give you an hourly rate of somewhere around $150.

How much is $300K a year monthly?

A salary of $300,000 per year, divided by 12 months, comes out to roughly $25,000 per month.

How much is $300K a year daily?

A gross annual income of $300,000 per year, divided by 365 days, comes out to about $821.92 per day. Of course, most people don’t work every single day of the year. As an estimate for the normal five-day work week, accounting for weekends and typical American public holidays, an employee might work about 250 days per year, in which case a $300,000 salary would come to approximately $1,200 per day.

Photo credit: iStock/Dusan Atlagic

SoFi Relay offers users the ability to connect both SoFi accounts and external accounts using Plaid, Inc.’s service. When you use the service to connect an account, you authorize SoFi to obtain account information from any external accounts as set forth in SoFi’s Terms of Use. Based on your consent SoFi will also automatically provide some financial data received from the credit bureau for your visibility, without the need of you connecting additional accounts. SoFi assumes no responsibility for the timeliness, accuracy, deletion, non-delivery or failure to store any user data, loss of user data, communications, or personalization settings. You shall confirm the accuracy of Plaid data through sources independent of SoFi. The credit score is a VantageScore® based on TransUnion® (the “Processing Agent”) data.

*Terms and conditions apply. This offer is only available to new SoFi users without existing SoFi accounts. It is non-transferable. One offer per person. To receive the rewards points offer, you must successfully complete setting up Credit Score Monitoring. Rewards points may only be redeemed towards active SoFi accounts, such as your SoFi Checking or Savings account, subject to program terms that may be found here: SoFi Member Rewards Terms and Conditions. SoFi reserves the right to modify or discontinue this offer at any time without notice.

Third-Party Brand Mentions: No brands, products, or companies mentioned are affiliated with SoFi, nor do they endorse or sponsor this article. Third-party trademarks referenced herein are property of their respective owners.

Non affiliation: SoFi isn’t affiliated with any of the companies highlighted in this article.

Financial Tips & Strategies: The tips provided on this website are of a general nature and do not take into account your specific objectives, financial situation, and needs. You should always consider their appropriateness given your own circumstances.

SORL-Q126-038

A six-figure salary is often associated with a comfortable lifestyle, and for many workers, reaching that threshold is a dream come true. If you’re a single person earning $100,000 a year, you may find that you have more than enough to cover your basic needs, with money left over for short- and long-term financial goals.

But it’s worth noting that salaries don’t go as far as they used to. The rising cost of living, shifting economic conditions, and individual spending habits and financial obligations can all play a role.

Let’s take a closer look.

Is $100K a Good Salary?

Generally speaking, $100,000 is a good six-figure salary for a single person. Before taxes, $100,00 works out to roughly $8,333 per month. Whether that’s enough for you depends largely on where you live. Savings, property ownership, and discretionary funds may be achievable in an area with a low cost of living. But in a more expensive area, that same salary won’t go as far because housing, transportation, and other necessities all cost more.

A money tracker can provide a bird’s-eye view of your spending and saving, and help ensure you’re staying on track financially.

Average Median Income in the US by State in 2024

In 2024, the average pay in the U.S. was $69,846.57, according to the Social Security Administration. But wages vary greatly by state, reflecting regional differences in the cost of living and economic inequality.

States such as California, Maryland, and Massachusetts, which have robust economies and a high cost of living, generally report higher median salaries, frequently topping $100,000 annually. Average annual income in states such as West Virginia, Arkansas, and Mississippi, which have a lower cost of living, is typically closer to $60,000. The presence of certain industries, job opportunities, and state-specific laws all contribute to differences in pay.

Here’s a look at the median household income in each state, per U.S. Census Bureau data.

Average Cost of Living in the US by State in 2024

It’s not just you: Goods and services have gotten more expensive, thanks in part to inflation. Depending on where you live, you may be paying more for housing, transportation, food, health care, and other necessities compared to someone in a neighboring town or state.

One way to determine whether $100,000 is enough for you to live on is to look at your cost of living. The cost of basic necessities varies by location, and this is often reflected in salaries. Areas with higher wages tend to have higher costs of living, while areas with a lower cost of living have lower wages.

With that in mind, here’s a look at what the average resident in each state spends on basic necessities, according to data from the U.S. Bureau of Economic Analysis.

How to Live on a $100K Salary

Even if a $100,000 salary is more than enough to cover your expenses, it’s still a smart move to create a budget. Having a plan for where your money is going can help keep unnecessary spending in check and allow you to make progress toward your financial goals.

The first step is to ensure your budget can cover your necessities, such as housing, utilities, groceries, and transportation. Next, set aside money for short- and long-term savings goals, such as retirement or buying a home, and debt repayment. Finally, carve out funds for discretionary spending to ensure you’re able to enjoy a balanced lifestyle without going over your budget.

How to Budget for a $100K Salary

There’s no one-size-fits-all approach to making a financial plan and there’s no shortage of budgeting methods to explore.

One popular option is the 50/30/20 approach. Here, you earmark 50% of your budget to needs (think housing, transportation, food); 30% to wants (travel, entertainment); and 20% to savings and debt repayment.

Prefer something more straightforward? Consider a line-item budget. This requires you to list all your expenses, or categories of expenses, over a period of time, such as a month or year, and assign a spending target to each one. Then, every month, you can compare current expenses to past expenses to ensure you’re staying on track.

Of course, life changes, and you’ll want to review and adjust your budget regularly to make sure it’s in line with evolving goals and circumstances. A budget planner app can help you create a new budget, categorize spending, and monitor your credit score.

Maximizing a $100K Salary

There are ways to get more out of a $100,000 salary. Here are a few strategies to try:

•   Prepare for the unexpected. Once you’ve paid for your monthly expenses, dedicate some of the remaining amount to building up an emergency fund. A good rule of thumb is to save enough to cover three to six months’ worth of expenses.

•   Save for retirement. After your emergency fund is established, direct some funds to your retirement savings account. Crunch the numbers and see if you can contribute more, and find out if you qualify for a company match.

•   Improve your credit. Check your credit score, and if the number isn’t where you want it, look for ways to improve it. Steps may include setting up a system to ensure your bills are paid on time, routinely checking your credit report for errors, and keeping your credit utilization low.

Quality of Life with a $100K Salary

Whether it’s an entry-level salary or a pay upgrade earned after several years on the job, $100,000 can offer a good quality of life for many people. This amount is typically enough for the basics with some left over for enjoyment and long-term savings goals, such as buying a home, retirement, or continuing education.

That said, the quality of life on a $100,000 salary varies based on factors such as living expenses in your area, your financial obligations, and whether you support anyone else.

Is $100,000 a Year Considered Rich?

There’s no single definition of how much someone must earn to be considered rich. So much comes down to factors such as cost of living, location, and your individual financial situation. Someone who makes $100,000 a year, has a low cost of living, and is investing and saving might feel financially better off compared to those who make the same amount but live in high-priced cities such as New York, San Francisco, or Los Angeles.

Bottom line: Even though $100,000 a year might not put you in the highest echelons of wealth, it typically provides a stable, comfortable lifestyle.

Recommended: How to Calculate Your Net Worth

Is $100K a Year Considered Middle Class?

Middle class is defined as income that is two-thirds to double the national median income, or $55,402 and $163,208. By that definition, $100,000 is considered middle class.

Keep in mind that those figures are for the nation as a whole. Each state has a different range of income levels to be considered middle class. In Spokane, WA, for instance, a middle-class household needs to earn between $66,259 and $198,778 per year. In Jackson, MS, the range is $39,418 and $118,254.

Example Jobs that Make About $100,000 a Year

Wondering which jobs come with a six-figure salary? Here are some professions that pay around $100,000 per year, according to the Bureau of Labour Statistics — some of which could be a good fit for introverts:

•   Physical Therapist: $101,020

•   Administrative Manager: $$106,880

•   Computer Systems Analyst: $103,790

•   Mathematicians and Statisticians: $104,350

•   Sociologist: $101,690

Recommended: 25 Highest Paying Jobs in the US

The Takeaway

In many ways, earning $100,000 can feel like achieving a major professional milestone. And in many places, it can certainly provide a comfortable, middle-class lifestyle with room for savings, investments, and discretionary income. However, in expensive cities, you may find that $100,000 covers the basics but doesn’t leave much left over. Creating a budget you can stick to can go a long way toward helping you maximize your salary.

Take control of your finances with SoFi. With our financial insights and credit score monitoring tools, you can view all of your accounts in one convenient dashboard. From there, you can see your various balances, spending breakdowns, and credit score. Plus you can easily set up budgets and discover valuable financial insights — all at no cost.

FAQ

Can I live comfortably making 100K a year?

Yes, you can live comfortably on $100,000 per year, though how comfortable you are will depend on a variety of things, including where you reside, your lifestyle, and your financial commitments.

What can I afford with a 100K salary?

If you make $100,000 a year, you can save money for investments and savings, as well as afford adequate health care, dependable housing, and occasional travel and entertainment.

How much is 100K a year hourly?

Assuming a 40-hour work week and working 50 weeks a year, a $100,000 salary is equivalent to about $48 per hour.

How much is 100K a year monthly?

Before taxes, a $100K wage works out to about $8,333 per month.

How much is 100K a year daily?

A $100K wage, assuming a regular five-day workweek and working 50 weeks a year, is roughly $384 every day.

Photo credit: iStock/Pekic

SoFi Relay offers users the ability to connect both SoFi accounts and external accounts using Plaid, Inc.’s service. When you use the service to connect an account, you authorize SoFi to obtain account information from any external accounts as set forth in SoFi’s Terms of Use. Based on your consent SoFi will also automatically provide some financial data received from the credit bureau for your visibility, without the need of you connecting additional accounts. SoFi assumes no responsibility for the timeliness, accuracy, deletion, non-delivery or failure to store any user data, loss of user data, communications, or personalization settings. You shall confirm the accuracy of Plaid data through sources independent of SoFi. The credit score is a VantageScore® based on TransUnion® (the “Processing Agent”) data.

*Terms and conditions apply. This offer is only available to new SoFi users without existing SoFi accounts. It is non-transferable. One offer per person. To receive the rewards points offer, you must successfully complete setting up Credit Score Monitoring. Rewards points may only be redeemed towards active SoFi accounts, such as your SoFi Checking or Savings account, subject to program terms that may be found here: SoFi Member Rewards Terms and Conditions. SoFi reserves the right to modify or discontinue this offer at any time without notice.

Non affiliation: SoFi isn’t affiliated with any of the companies highlighted in this article.

Financial Tips & Strategies: The tips provided on this website are of a general nature and do not take into account your specific objectives, financial situation, and needs. You should always consider their appropriateness given your own circumstances.

SORL-Q126-030

The median annual pay for cosmetologists is $35,420 a year, according to the Bureau of Labor Statistics’ most recent data. Helping people feel their best can be a rewarding way to spend your workdays, and cosmetologists get to do just that. From hair to skincare to makeup to nails, there are many different niches a cosmetologist can master, all of which can be enjoyable career paths.

That said, the average pay for cosmetologists is significantly lower than the average income for all jobs in America, which, according to the Bureau of Labor Statistics, is $62,088 for the first quarter of 2025 (based on an average weekly salary of $1,194).

Keep reading to learn what it’s like to work as a cosmetologist and the earning potential for this role.

What Are Cosmetologists?

Cosmetologists provide personal grooming services, such as haircuts, manicures and pedicures, skincare services and facials, hair removal (waxing), or makeup artistry. Many cosmetologists offer a variety of these services, whereas others have a specific niche, such as hairstyling.

During cosmetology school, it’s common for students to take lessons in a variety of different specialties. That way, they can gain better insight into which areas of cosmetology they’re most passionate about and skilled at.

In terms of training, states often require a certain number of hours of training and a passing grade in written and practical examinations. For instance, in New York, you need 1,000 hours of training. You might study at a private cosmetology school (cosmetology school loans may be available) or undertake an associate’s degree program.

Your area of specialization can impact your earning potential as a cosmetologist, as can your location. In New York City, with its high cost of living and pay grade, one study found the average salary to be more than $70,000 per year. That could mean that those in major cities who have superior skills and experience and a loyal following could even earn $100,000 per year.

Lastly, it’s important to recognize that cosmetology typically involves lots of interaction with clients. For this reason, it may not be the best job for antisocial people.

💡 Quick Tip: We love a good spreadsheet, but not everyone feels the same. An online budget planner can give you the same insight into your budgeting and spending at a glance, without the extra effort.

How Much Do Starting Cosmetologists Make a Year?

Cosmetologists in entry-level positions can expect to earn less than those with many years of experience.

When it comes to starting wages, cosmetologists can expect to earn a median hourly wage of $11.82 (in the lowest 10% of earners) but may see that amount rise significantly over time. The top 10% of earners in this field make more than $33.76 per hour.

For example, a celebrity makeup artist can make very competitive pay, but they also tend to be extremely skilled and experienced.

What Is the Average Salary for a Cosmetologist?

The amount of money someone stands to earn as a cosmetologist can vary significantly depending on the services they offer, their experience level, and where they live. The median annual salary is $35,420.

It’s important to note that an annual salary is not a guarantee as a cosmetologist, as many work part-time. In terms of how much a cosmetologist makes an hour, the median hourly wage for a cosmetologist is $16.95.

These medians give prospective cosmetologists an idea of how much they stand to make if they pursue this career path, but they can get an even clearer picture by reviewing the average salary by state. Here, you’ll find these figures for each state according to 2024 data.

What Is the Average Cosmetologist Salary by State for 2024?

Source: CareerOneStop

Cosmetologist Job Considerations for Pay and Benefits

Even if they work full-time, many cosmetologists are self-employed and rent a chair or space at the salon they work in. Because most cosmetologists are not full-time employees of someone else’s business, they typically don’t receive employer-sponsored benefits such as health coverage or a 401(k) match. This means they also don’t receive a paycheck when they take time off. To help offset the loss of benefits, cosmetologists need to set their rates to cover not only living expenses but also health care and their retirement fund.

Some cosmetologists, however, will find full-time work. Examples of these career paths could be working as a cosmetology instructor or at a resort’s spa.

Pros and Cons of a Cosmetologist Salary

One of the main benefits of working as a cosmetologist is that you don’t require expensive schooling to start this career. While you must typically complete a state-approved cosmetology program, this education path is usually much faster and less expensive than pursuing a four-year degree, with costs generally ranging from $10,000 to $20,000. This means many cosmetologists can avoid taking out expensive student loans with monthly payments that can eat into their paychecks.

However, there’s no denying that the average cosmetologist salary is below the national average salary for all incomes combined.

The Takeaway

Working as a cosmetologist leads to a median annual salary of $35,420. With hard work and strong skills, cosmetologists can expect to make more money as their careers progress, especially if they work in certain markets. Also, since many cosmetologists work for themselves, they can gradually increase their rates as they build their client base and reputation.

Take control of your finances with SoFi. With our financial insights and credit score monitoring tools, you can view all of your accounts in one convenient dashboard. From there, you can see your various balances, spending breakdowns, and credit score. Plus you can easily set up budgets and discover valuable financial insights — all at no cost.

FAQ

Can you make 100K a year as a cosmetologist?

It’s possible to earn $100,000 or more a year as a cosmetologist. However, it will take time to build up a client base or find a position that pays high enough rates to earn a six-figure salary.

Do people like being a cosmetologist?

It’s very common to pursue cosmetology as a career because of a passion for hair care, skincare, makeup, or nail care. This can be a fun and rewarding career path for anyone whose passions align with the services they offer. However, even if they love cosmetology, introverted people may find a full day of social interaction to be too draining.

Is it hard to get hired as a cosmetologist?

The Bureau of Labor Statistics projects 84,200 job openings for cosmetologists between now and 2034, and it anticipates a 5% growth in overall employment during this period, which exceeds the national average.

What is the highest-paid cosmetology job?

Cosmetologists such as celebrity makeup artists often earn competitive salaries, but they tend to be highly skilled and experienced. Those working in major cities can potentially earn six-figure salaries after building a loyal client base.

Is it expensive to become a cosmetologist?

Cosmetology programs generally cost between $10,000 and $20,000. This is lower than the typical cost of a four-year degree.

About the author

Jacqueline DeMarco

Jacqueline DeMarco is a freelance writer who specializes in financial topics. Her first job out of college was in the financial industry, and it was there she gained a passion for helping others understand tricky financial topics. Read full bio.

Photo credit: iStock/Renata Angerami

SoFi Relay offers users the ability to connect both SoFi accounts and external accounts using Plaid, Inc.’s service. When you use the service to connect an account, you authorize SoFi to obtain account information from any external accounts as set forth in SoFi’s Terms of Use. Based on your consent SoFi will also automatically provide some financial data received from the credit bureau for your visibility, without the need of you connecting additional accounts. SoFi assumes no responsibility for the timeliness, accuracy, deletion, non-delivery or failure to store any user data, loss of user data, communications, or personalization settings. You shall confirm the accuracy of Plaid data through sources independent of SoFi. The credit score is a VantageScore® based on TransUnion® (the “Processing Agent”) data.

*Terms and conditions apply. This offer is only available to new SoFi users without existing SoFi accounts. It is non-transferable. One offer per person. To receive the rewards points offer, you must successfully complete setting up Credit Score Monitoring. Rewards points may only be redeemed towards active SoFi accounts, such as your SoFi Checking or Savings account, subject to program terms that may be found here: SoFi Member Rewards Terms and Conditions. SoFi reserves the right to modify or discontinue this offer at any time without notice.

Financial Tips & Strategies: The tips provided on this website are of a general nature and do not take into account your specific objectives, financial situation, and needs. You should always consider their appropriateness given your own circumstances.

Non affiliation: SoFi isn’t affiliated with any of the companies highlighted in this article.

SORL-Q126-024

At some point, there may come a time when you need to ask the question: Does filing for unemployment benefits affect your credit score? The answer is no, fortunately.

Losing your job can be like a kick in the stomach. It can deflate you and leave you scrambling to figure out what to do next. The last thing that many people need, in addition to firing up a job search, is a hit to their credit score, too. If you do lose your job, many financial professionals will tell you that the first thing you should do, if you qualify, is to file for unemployment so that you still have some income as you revise your resume and start interviewing.

The good news, again, is that you don’t need to worry about a potential ding to your credit. More information below!

Why Your Credit Score Matters

Your credit score is, in a sense, your financial reputation. It can give lenders or creditors a quick and easy summary of your creditworthiness — or, how likely it is you will pay back a loan on time and in full. Everyone has a credit report, and you can think of your credit score as a truncated version of your credit report.

Your credit score matters because it’s used by lenders to gauge how risky you are as a borrower. It’s used to measure not only whether a lender would be willing to give you a loan, but how much they’d charge you for the privilege — or what the effective interest rate would be for borrowing.

When it comes to some of life’s bigger purchases, such as a car or a home, that can be very important. A couple of percentage points can mean that a borrower ends up paying tens or even hundreds of thousands of dollars more in interest over the years. As such, when a lender sizes up your credit application and takes a look at your credit score, the higher your credit score is, the better.

But what factors affect your credit score? It’s a mixture of things: your payment history, total debt balances, credit utilization, credit history (how long you’ve had accounts), credit mix, and inquiries from lenders.

Recommended: Should I Sell My House Now or Wait?

Unemployment Won’t Appear on Your Credit Report

You may be concerned that if you lose your job, filing for unemployment may affect your credit score. But there’s no cause for concern. Not only will filing for unemployment not affect your credit score, it also won’t appear on your credit report. Your credit report contains information relating to your past borrowing activity, not your employment status.

Unless there’s been a change in your credit history — say, you apply for a new line of credit or close an old credit card — your credit report won’t change. That said, your credit report may contain information relating to past employers, but the only things that should have an effect on your credit score are items relating to financial accounts.

That may become an issue if, for example, you were issued a company credit card at a previous job. But for most people, your employment status, or past employers, aren’t likely to have an impact on your credit report or credit score.

Remember: Your credit score is a snapshot of your financial reputation, not your employment status!

How Unemployment Can Affect Credit Scores Indirectly

With all of that in mind, your employment status — or filing for unemployment — may have an effect on your credit score in an indirect way.

As mentioned, your employment status isn’t a part of your credit score’s calculation, and neither is whether or not you received unemployment assistance. It’s really all about paying back, or down, your debts on time and on schedule. However, if you do lose your job and file for unemployment, you may find yourself in an income crunch. Your unemployment check is most likely going to be smaller than the paycheck you’re accustomed to receiving, and that may make it difficult to keep up with your payments.

You may also be tempted to start using your lines of credit more while unemployed as a way of making ends meet. For example, you might start using your credit card at the grocery store as a way of keeping money in your bank account, with the thought that you’ll pay off your balance once you get another job and a regular paycheck again. Some individuals may also look into personal loans for unemployed persons, too.

One of these options may suit your situation. However, they may also increase your credit utilization and overall debt, which can lower your credit score.

Finally, if you find that you can’t keep up with your minimum payments due to the resulting cash crunch of losing your job, that, too, will ding your credit score. That’s why it’s important to maintain a line of communication with lenders. If you can’t make your payment, let them know, and they may be willing to work with you. Tools like a money tracker app may be helpful as well.

Remember, if you do have a company credit card or some other type of financial account with an employer and you lose your job, that credit line could be severed. That, too, could affect your credit score, as it ultimately lowers your total available credit.

Recommended: What Is the Difference Between Transunion and Equifax?

How to Protect Your Credit Score When Unemployed

To protect your credit score while unemployed, the most important things you can do are to try to keep your debt balances low and to keep an open line of communication with your creditors. Of course, a loss in income will probably spur you to change your spending habits by cutting back in certain areas. But in terms of maintaining your credit score, the best course of action is to keep doing what you’re doing: making your payments.

That means continuing to make your payments (at least the minimum) as scheduled. And, since it bears repeating, if you’re going to struggle to make those minimum payments, call your lender and let them know. Some will be willing to make accommodations, such as offering forbearance, extensions, or deferred payments, although there’s no guarantee.

If you feel that you need more help, you can also work with a credit counselor to help you evaluate your options and even negotiate with your lenders. You may also want to set up free credit monitoring, too, so that you can see any changes to your score.

The Takeaway

If you lose your job and file for unemployment, there shouldn’t be a direct effect on your credit score. That said, there may be indirect factors that could lower your score. The most important thing you can do to maintain a strong credit score is to keep making your payments and try to keep your debt balances to a reasonable level.

And remember that if you’re really struggling, it may be worth it to reach out to a professional for personalized advice.

Take control of your finances with SoFi. With our financial insights and credit score monitoring tools, you can view all of your accounts in one convenient dashboard. From there, you can see your various balances, spending breakdowns, and credit score. Plus you can easily set up budgets and discover valuable financial insights — all at no cost.

FAQ

Can I apply for a credit card while I’m unemployed?

It’s possible to get a credit card while unemployed, but keep in mind that a creditor’s main concern is whether or not you can make your payments. As such, your approval for a credit card may hinge on your income and other debts or financial obligations.

What if my credit score goes down?

Credit scores go up and down all the time, but if you do experience a fall in your credit score while unemployed, you’ll likely know why — and it’s probably because you missed payments or saw your credit utilization go up. The good news is that you can always work on increasing it again.

What personal information does your credit report include?

The short answer? A lot of it. That includes your name, aliases, birth date, Social Security number, address (and former addresses), phone number, and possibly your employment history, among other things.

Photo credit: iStock/sorrapong

SoFi Relay offers users the ability to connect both SoFi accounts and external accounts using Plaid, Inc.’s service. When you use the service to connect an account, you authorize SoFi to obtain account information from any external accounts as set forth in SoFi’s Terms of Use. Based on your consent SoFi will also automatically provide some financial data received from the credit bureau for your visibility, without the need of you connecting additional accounts. SoFi assumes no responsibility for the timeliness, accuracy, deletion, non-delivery or failure to store any user data, loss of user data, communications, or personalization settings. You shall confirm the accuracy of Plaid data through sources independent of SoFi. The credit score is a VantageScore® based on TransUnion® (the “Processing Agent”) data.

*Terms and conditions apply. This offer is only available to new SoFi users without existing SoFi accounts. It is non-transferable. One offer per person. To receive the rewards points offer, you must successfully complete setting up Credit Score Monitoring. Rewards points may only be redeemed towards active SoFi accounts, such as your SoFi Checking or Savings account, subject to program terms that may be found here: SoFi Member Rewards Terms and Conditions. SoFi reserves the right to modify or discontinue this offer at any time without notice.

Third-Party Brand Mentions: No brands, products, or companies mentioned are affiliated with SoFi, nor do they endorse or sponsor this article. Third-party trademarks referenced herein are property of their respective owners.

Financial Tips & Strategies: The tips provided on this website are of a general nature and do not take into account your specific objectives, financial situation, and needs. You should always consider their appropriateness given your own circumstances.

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Households in the Lone Star State earn an income that’s just below the U.S. median. The U.S. Census Bureau reports that the median household income in Texas is $79,721, while the median annual income in the U.S. is $83,730.

Taking a deeper look at Texas’ income data can provide insight into how your salary compares to peers in your city and county. This article gathers data from the U.S. Census Bureau’s American Community Survey, the Bureau of Labor Statistics (BLS), the Massachusetts Institute of Technology (MIT), and others so that you can have a better understanding of where your income stands.

Average Salary in Texas by Age in 2026

Generally, your income grows as you gain experience and seniority in the job market and peaks between ages 45 and 54, according to a study by ADP Research. It tends to decrease as workers transition into retirement, which is around the age of 65 in Texas.

Below is the average income by age according to a 2025 Neilsberg analysis of publicly gathered data.

Whether you have a good salary for your age as a Texas resident depends on how your assets measure up against your financial obligations. You can use a net worth calculator by age to determine where your finances are today.

You may also want to consider using a budget planner app to help with budgeting and saving as you work toward your financial goals.

Median Salary in Texas by City in 2026

While the average salary in the U.S. is higher than the average Texan’s annual income, Texas salaries vary based on where you live. Below is a list of the most-populated cities in the state and the median salary of their residents.

Median Salary in Texas by County in 2026

The U.S. Census Bureau also offers data on median household income across various Texas counties. Below, the median salaries are listed in order of lowest to highest.

Median salaries vary depending on which Texas county you live in. Although some of the more popular counties may offer higher incomes, they may also come with higher costs of living, so you may find it harder to maximize your income. Combined with other financial obligations, such as loan and credit card debt and savings for your future goals, your income may not go as far as you expect.

Using a money tracker tool can help you stay on top of your necessary and discretionary spending. You can create specific budgets so you can track your progress toward a number of goals.

Recommended: What Is a Six-Figure Salary?

Examples of the Highest-Paying Jobs in Texas

A well-paying job in Texas can help you achieve a more comfortable lifestyle. Texas is home to lucrative business sectors that offer a good entry-level salary, from aerospace and defense to energy production, thanks to the state’s abundant natural resources.

Here are just a few of the highest-paying jobs and their average salaries in Texas, according to the most recent BLS data:

•   Radiologists: $300,260. These medical professionals use imaging tools, such as X-rays, magnetic resonance imaging, ultrasounds, and other techniques to view patients’ internal anatomy and provide diagnostic images.

•   Petroleum engineers: $158,990. Petroleum engineers are responsible for developing plans to extract natural resources, such as oil and gas, from the earth in a safe and efficient way.

•   Aerospace engineers: $130,320. These engineers design and develop aircrafts, shuttles, satellites, and defense-use missiles and rockets. They also inspect designs and test their functionality according to project goals.

•   Industrial production managers: $134,910. In the manufacturing industry, industrial production managers are responsible for ensuring smooth operations when it comes to meeting production goals, managing staff, communicating with customers and suppliers, and more.

•   Information security analysts: $126,800. These professionals design, implement, and monitor computer networks and systems, such as firewalls, intranet, and more. They also test for vulnerabilities, make enhancements, and stay ahead of any new technologies that may impact security within an organization.

There are many career opportunities to explore, whether you enjoy engaging with teammates and clients or are interested in jobs for introverts that don’t require a lot of person-to-person interaction.

Recommended: 25 Highest-Paying Jobs in the US

The Takeaway

The average salary in Texas by age ranges from $41,078 to $91,649, which is lower than the average pay in the United States. Incomes often depend on where you are in your career — whether you’re just starting out, entering your peak-earning years, or preparing for retirement.

How far your salary goes is also dependent on your existing assets, debt, and where you live. Learning how to calculate your net worth can help you determine where you are financially.

Take control of your finances with SoFi. With our financial insights and credit score monitoring tools, you can view all of your accounts in one convenient dashboard. From there, you can see your various balances, spending breakdowns, and credit score. Plus you can easily set up budgets and discover valuable financial insights — all at no cost.

FAQ

What is a good average salary in Texas?

The median household income in Texas is $79,721 according to the U.S. Census Bureau, but whether it is sufficient for your needs depends on where you live, your expenses, how many people are in your household, and other factors.

What is the average gross salary in Texas?

According to 2024 BLS data, the most current data available, the average salary in Texas across all occupations and industries is $63,660. The average hourly wage in the state is $30.60.

What is considered a high salary in Texas?

Some of the highest paying jobs in Texas are in radiology, engineering, and industrial production, which have average salaries above $100,000.

What is the average income per person in Texas?

The average salary per person in Texas is $40,752 according to 2024 U.S. Census Bureau data.

What is a livable wage in Texas?

In Texas, a livable wage for an adult with no children is $21.77 an hour based on recent data from MIT, which translates to an annual salary of $45,282. For a family of four with two working adults, a living wage is about $24.45 an hour per earner, or $50,856 annually.

Photo credit: iStock/Moon Safari

SoFi Relay offers users the ability to connect both SoFi accounts and external accounts using Plaid, Inc.’s service. When you use the service to connect an account, you authorize SoFi to obtain account information from any external accounts as set forth in SoFi’s Terms of Use. Based on your consent SoFi will also automatically provide some financial data received from the credit bureau for your visibility, without the need of you connecting additional accounts. SoFi assumes no responsibility for the timeliness, accuracy, deletion, non-delivery or failure to store any user data, loss of user data, communications, or personalization settings. You shall confirm the accuracy of Plaid data through sources independent of SoFi. The credit score is a VantageScore® based on TransUnion® (the “Processing Agent”) data.

*Terms and conditions apply. This offer is only available to new SoFi users without existing SoFi accounts. It is non-transferable. One offer per person. To receive the rewards points offer, you must successfully complete setting up Credit Score Monitoring. Rewards points may only be redeemed towards active SoFi accounts, such as your SoFi Checking or Savings account, subject to program terms that may be found here: SoFi Member Rewards Terms and Conditions. SoFi reserves the right to modify or discontinue this offer at any time without notice.
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Third-Party Brand Mentions: No brands, products, or companies mentioned are affiliated with SoFi, nor do they endorse or sponsor this article. Third-party trademarks referenced herein are property of their respective owners.

Non affiliation: SoFi isn’t affiliated with any of the companies highlighted in this article.

Financial Tips & Strategies: The tips provided on this website are of a general nature and do not take into account your specific objectives, financial situation, and needs. You should always consider their appropriateness given your own circumstances.

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