Deciding where to live is often challenging, even for high-income earners. Various factors impact this decision, but affordability is paramount among those, per Redfin. Living in a higher cost-of-living state erodes higher salaries, impeding goal achievement.
Job opportunity is also an important factor to contemplate when selecting a state to live in. States with meaningful growth across various industries and robust demand for specialized talent may offer career paths that help Americans expand their skills and maximize income.
In a recent study, Affordable Contractors Insurance identified the 10 most affordable states for high-income earners to live in, based on cost of living, wage growth, median wages and more. Here are the 10 most affordable locations for high-income earners to reside.
Florida
- Affordability Index: 66
- Median Annual Wages: $66,352
- Average Wage Growth: 5.1%
- State Income Tax Rates: 0%
- Employment Rate: 96.2%
- Labor Force Participation Rate: 60%
- Earning Potential Index: 99
Colorado
- Affordability Index: 95
- Median Annual Wages: $77,272
- Average Wage Growth: 4.2%
- State Income Tax Rates: 4%
- Employment Rate: 95.8%
- Labor Force Participation Rate: 68.8%
- Earning Potential Index: 90
Washington
- Affordability Index: 99
- Median Annual Wages: $92,612
- Average Wage Growth: 5.8%
- State Income Tax Rates: 7%
- Employment Rate: 95.5%
- Labor Force Participation Rate: 64.6%
- Earning Potential Index: 88
North Dakota
- Affordability Index: 81
- Median Annual Wages: $65,364
- Average Wage Growth: 3.3%
- State Income Tax Rates: 1.95 – 2.5%
- Employment Rate: 97.5%
- Labor Force Participation Rate: 70.5%
- Earning Potential Index: 87
Texas
- Affordability Index: 92
- Median Annual Wages: $72,592
- Average Wage Growth: 3.1%
- State Income Tax Rates: 0%
- Employment Rate: 95.9%
- Labor Force Participation Rate: 64.2%
- Earning Potential Index: 86
South Dakota
- Affordability Index: 62
- Median Annual Wages: $57,304
- Average Wage Growth: 3%
- State Income Tax Rates: 0%
- Employment Rate: 98.1%
- Labor Force Participation Rate: 69%
- Earning Potential Index: 85
Utah
- Affordability Index: 62
- Median Annual Wages: $64,896
- Average Wage Growth: 4%
- State Income Tax Rates: 5%
- Employment Rate: 96.7%
- Labor Force Participation Rate: 70.4%
- Earning Potential Index: 84
Alaska
- Affordability Index: 55
- Median Annual Wages: $71,864
- Average Wage Growth: 5.8%
- State Income Tax Rates: 0%
- Employment Rate: 95.3%
- Labor Force Participation Rate: 66.2%
- Earning Potential Index: 83
New Hampshire
- Affordability Index: 66
- Median Annual Wages: $73,008
- Average Wage Growth: 4.8%
- State Income Tax Rates: 3%
- Employment Rate: 97%
- Labor Force Participation Rate: 65.4%
- Earning Potential Index: 81
Montana
- Affordability Index: 63
- Median Annual Wages: $58,500
- Average Wage Growth: 5.6%
- State Income Tax Rates: 4.7 – 5.9%
- Employment Rate: 97.1%
- Labor Force Participation Rate: 63.6%
- Earning Potential Index: 74
“Where you live can dramatically shape your earning potential. States with diverse industries, high demand for skilled workers, and strong economic growth tend to offer far greater opportunities for employees to advance their careers and increase their income,” said Sean O’Keefe, CEO and founder of Affordable Contractors Insurance.
Where you live matters, even with a growing income. Pairing a high income with affordability is a wise way to position yourself to achieve your financial goals.
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This article originally appeared on GOBankingRates.com: 10 Most Affordable States for High-Income Earners
