Is $85,000 a Good Salary? A Comprehensive Breakdown for 2024
The question "Is $85,000 a good salary?" is one many professionals ask as they navigate their career paths. On the surface, it sounds like a substantial number, but is it enough to live comfortably, achieve financial goals, and feel valued in your role? The short answer is: yes, for most of the country, $85,000 is a very good salary. However, its true value is highly dependent on a variety of personal and economic factors.
This article will provide a data-driven analysis to help you understand where an $85,000 salary stands nationally, what kinds of jobs command this level of pay, and how factors like your location, experience, and industry ultimately determine how good this salary is *for you*.
The Big Picture: How Does $85k Compare Nationally?
Before we break down individual circumstances, let's establish a baseline. How does an $85,000 annual salary compare to the rest of the United States?
According to the U.S. Bureau of Labor Statistics (BLS), the median weekly earnings for a full-time wage or salary worker in the fourth quarter of 2023 was $1,145. This translates to an annual salary of $59,540.
Furthermore, the U.S. Census Bureau reported that the median *household* income in 2022 was $74,580.
Key Takeaway: An individual salary of $85,000 is significantly higher than both the national median individual salary and the national median household income. From a purely statistical standpoint, earning $85,000 a year places you in a comfortable position compared to the average American earner.
What Kinds of Jobs Pay Around $85k a Year?
An $85,000 salary can represent different career stages depending on the profession. For some, it's a strong starting salary; for others, it's a solid mid-career benchmark. Here are a few examples of professions where an $85k salary is common, with data from sources like the BLS, Salary.com, and Glassdoor.
- Registered Nurse (RN): The BLS reports the median pay for RNs in 2022 was $81,220 per year. An RN with a few years of experience or a valuable specialization could easily earn $85,000, particularly in a metropolitan area.
- Financial Analyst: According to Salary.com, the average salary for a Financial Analyst in the U.S. is around $89,800, with a typical range falling between $80,000 and $101,000. For this role, $85k would be a typical salary for a professional with 2-4 years of experience.
- Marketing Manager: Glassdoor data shows the estimated total pay for a Marketing Manager is around $93,000 per year in the United States, making $85k a very plausible salary for someone with solid experience, but perhaps not yet at a senior or director level.
- Software Developer: The BLS lists the 2022 median pay for software developers at $124,200 per year. In this high-demand field, $85,000 might be considered a strong entry-level or junior-level salary in many markets, with significant room for future growth.
- Construction Manager: With a median pay of $101,480 per year (BLS, 2022), a construction manager with a few completed projects under their belt could expect to earn a salary in the $85k range as they build their career.
Key Factors That Influence Salary
This is the most critical part of the analysis. The "goodness" of $85k is not absolute; it's relative to your specific context. Here’s how key factors can drastically alter the value of your paycheck.
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Geographic Location
Location is arguably the single most important factor. An $85,000 salary in a low-cost-of-living (LCOL) area can afford a much higher quality of life than the same salary in a high-cost-of-living (HCOL) city.
Consider this comparison using a cost-of-living calculator:
- An $85,000 salary in St. Louis, Missouri, provides a comfortable lifestyle.
- To maintain that same standard of living in San Francisco, California, you would need to earn approximately $155,000.
- Similarly, that $85k in St. Louis is equivalent to roughly $135,000 in New York City (Manhattan).
Before accepting an $85k salary, research the cost of housing, transportation, groceries, and taxes in that specific city or state.
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Years of Experience
Experience directly correlates with earning potential. How you view an $85k salary will change dramatically throughout your career.
- Entry-Level (0-2 years): An $85,000 salary is an *excellent* starting point for most industries and would be considered very high for a new graduate.
- Mid-Career (3-8 years): For many professionals, $85k is a solid, competitive mid-career salary that reflects growing expertise and responsibility.
- Senior/Experienced (8+ years): In high-earning fields like tech, finance, or specialized medicine, an experienced professional might view $85k as low. However, in many other stable fields like education administration or social services, it could be a very respectable senior-level income.
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Level of Education
Higher education and specialized certifications often unlock higher earning potential. A professional with a master’s degree, MBA, or Ph.D. generally has higher salary expectations than someone with a bachelor's degree. For example, a financial analyst with a Chartered Financial Analyst (CFA) designation can command a significantly higher salary than one without. An $85k salary for someone with a Ph.D. in a STEM field would be considered very low, but it could be an excellent salary for someone with a bachelor's degree in communications.
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Company Type and Industry
The industry you work in and the type of company you work for play a huge role.
- Industry: A software engineer at a tech company will almost always earn more than a similarly experienced IT professional at a non-profit organization. Industries like finance, technology, pharmaceuticals, and engineering consistently offer higher pay scales.
- Company: A large, multinational corporation (like Google or Deloitte) typically has more structured and higher-paying salary bands than a small local business or a startup. However, a startup might offer equity or stock options that could eventually be more valuable than a higher base salary.
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Area of Specialization
Within any given profession, specialization can be a powerful salary booster. A general practice registered nurse might earn around the median, but a nurse anesthetist—a highly specialized role—has a median salary of over $203,000 per year (BLS, 2022). The same is true for a general practice lawyer versus a patent lawyer or a general marketing professional versus one who specializes in high-demand technical SEO.
Job Outlook: Is $85k a Stepping Stone or a Ceiling?
For most professionals, a salary of $85,000 is not a final destination but a significant milestone on a longer career journey. The key is to be in a field with a strong growth outlook.
According to the BLS, overall employment in the U.S. is projected to grow 3 percent from 2022 to 2032. However, many of the professions mentioned above have a much more promising outlook:
- Registered Nurses: 6% growth (Faster than average)
- Software Developers: 25% growth (Much faster than average)
- Financial Analysts: 8% growth (Much faster than average)
If you are earning $85k in a growing field, it's likely a stepping stone to a six-figure salary and beyond. If you are in a stagnant or declining industry, it may be closer to a salary ceiling.
Conclusion: The Final Verdict
So, is $85,000 a good salary? The data provides a clear and encouraging answer:
Yes, an $85,000 salary is a great income. It puts you well above the national median for individuals and households, and it can provide a comfortable lifestyle in most parts of the country.
However, its true power depends on your personal context. It is an exceptional salary for an entry-level professional in a mid-cost city, a solid salary for a mid-career professional in most industries, and a potentially low salary for an experienced specialist in an expensive coastal hub.
Ultimately, use this number as a benchmark. Evaluate it against your location, experience, industry, and career goals to determine if it’s the right number for you right now, and more importantly, if it positions you for the financial and professional growth you desire in the future.