3 min Read
- Salary Comparison
- Living Wage
- Jobs That Make $85,000 a Year
SDI Productions / Getty Images
If an employee works full-time, 40 hours a week, then $85,000 a year comes out to $40.87 per hour, and $7,083 per month. With inflation and cost-of-living on the rise, is this still a good salary?
How Does $85,000 a Year Compare To the Average Salary?
According to the most recent census data, the current median salary in the U.S. is $64,994. An $85,000 salary, therefore, is 30.78% higher than the median income. According to the most recent data, a salary of $85,000 places an earner in the 60th percentile, meaning they make more money than 60% of the U.S. population.
Is $85,000 a Year a Middle-Class Income?
The middle class, according to Pew Research, is defined as households who earn between two-thirds and double the U.S. median income — in other words, between $43,329.33 and $129,988. This puts someone earning $85,000 a year very close to the midpoint of the middle class, which is $86,658.67.
Is $85,000 a Year a Living Wage?
A living wage is defined by MIT as a wage that allows a family to be financially independent, without the need to rely on public assistance, or to suffer “consistent and severe housing and food insecurity.” MIT also calls the living wage the “minimum subsistence wage.”
Whether $85,000 is a living wage depends largely on where a person lives and how many members they need to support in their household.
Cost of living is steadily rising. Rent nationwide increased by an average of 14% in the past year, according to Redfin. Some cities had significantly higher rent hikes, like New York City, where rent prices rose 23%.Income taxes also vary from state to state — and city to city — and can have a significant impact on take-home pay.
Make Your Money Work Better for You
In New York City, for a family of four with two children and only one working adult, the living wage is calculated as $44.33 per hour. For a single parent with two children, the living wage in New York City is $54.20 an hour. In these cases, because $85,000 a year is $40.87 an hour, it would not be a living wage. However, if a person is single, has no children or lives in a household where both adults work, then $85,000 a year would be considered a living wage in NYC.
New York City is one of the most expensive places to live in the U.S. In most U.S. states, $85,000 is considered a living wage.
What Jobs Make $85,000 a Year?
Jobs that pay $85,000 or more a year are usually jobs that require a Bachelor’s degree or higher. Here are several examples of jobs that make over $85,000 a year:
- Operations Management Analyst — $86,200
- Management Analyst — $87,660
- Statistician — $92,270
- Data Scientist — $98,230
- Veterinarian — $99,250
- Business Operations Manager — $103,650
- Actuary — $111,030
For employees making less than $85,000 a year, it could help to ask for a raise. From a survey of 160,060 workers by PayScale, 70% of workers who asked for a raise received one, while 39% received the specific raise they asked for.
Final Take
It can be beneficial to convert an annual salary into an hourly rate — such as $85,000 a year into $40.87 an hour — to compare compensation or to assist with budgeting.
Information is accurate as of Sept. 27, 2022.
Our in-house research team and on-site financial experts work together to create content that’s accurate, impartial, and up to date. We fact-check every single statistic, quote and fact using trusted primary resources to make sure the information we provide is correct. You can learn more about GOBankingRates’ processes and standards in our editorial policy.
- The Living Wage Calculator. "The Living Wage Calculator."
- U.S. News. "U.S. News."
- CNBC Make It. 2022. "15 U.S. states where you need to earn more than $70,000 to make ends meet."
- U.S. Bureau of Labor Statistics. 2022. "Earnings and unemployment rates by educational attainment, 2021."
- PayScale. "HOW TO ASK FOR A RAISE AND GET IT."
- Redfin. 2022. "Rental Market Tracker: Growth in U.S. Asking Rents Slows for Second-Straight Month."
- United States Census Bureau. 2022. "New Statistics Available From the 2016–2020 American Community Survey 5-Year Estimates."
- DQYDJ. 2022. "Average, Median, Top 1%, and all United States Household Income Percentiles."
As an expert in economics, salary structures, and labor market trends, I can confidently delve into the intricacies of the article titled "Salary Comparison: Jobs That Make $85,000 a Year." The information provided in this article touches upon several key concepts, and I'll break down each aspect with a depth of knowledge.
-
Salary and Hourly Rate Conversion: The article begins by discussing the annual salary of $85,000 and breaks it down into an hourly rate for a full-time, 40-hour workweek. The conversion to $40.87 per hour and $7,083 per month provides a clear understanding of the compensation structure.
-
Comparison to Average Salary: The author compares the $85,000 salary to the current median salary in the U.S., which is $64,994. This comparison reveals that $85,000 is 30.78% higher than the median income, positioning the earner in the 60th percentile.
-
Middle-Class Classification: The article references Pew Research to define the middle class as households earning between two-thirds and double the U.S. median income. With a range of $43,329.33 to $129,988, an individual earning $85,000 is placed close to the midpoint of the middle class.
-
Living Wage Analysis: MIT's definition of a living wage is provided, emphasizing financial independence without reliance on public assistance or facing severe economic challenges. The living wage depends on the cost of living, which is highlighted by the rising rent prices, income tax variations, and the example of New York City.
-
Geographic Variations in Living Wage: The article illustrates how the concept of a living wage varies geographically. Using the example of New York City, it explains that $85,000 may not be a living wage for a family with two children but could be sufficient for a single person or a dual-income household.
-
Jobs That Make $85,000 a Year: The article provides a list of professions that typically offer an annual salary of $85,000 or more. These jobs generally require a Bachelor’s degree or higher, including roles such as Operations Management Analyst, Data Scientist, Veterinarian, and Actuary.
-
Negotiating Salary: The article offers practical advice by referencing a PayScale survey, stating that 70% of workers who asked for a raise received one, with 39% getting the specific raise they requested.
-
Date of Information: A crucial aspect is the acknowledgment that the information is accurate as of September 27, 2022, emphasizing the relevance and timeliness of the content.
-
Credibility of Information: The article highlights the meticulous process of fact-checking, involving an in-house research team and on-site financial experts. It mentions the use of trusted primary resources to ensure accuracy.
-
References: The inclusion of various reputable sources such as the U.S. Census Bureau, MIT's Living Wage Calculator, Redfin, and PayScale adds credibility to the information presented in the article.
In summary, this article provides a comprehensive analysis of the $85,000 salary, considering its comparison to average incomes, classification in the middle class, and its adequacy as a living wage. The inclusion of specific job examples, negotiation tips, and up-to-date information enhances the overall credibility and usefulness of the content.
