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Deciding where to live is often challenging, even for people with high incomes. Various factors influence this decision, but affordability is paramount. redfin. Living in a state with a high cost of living reduces a high salary, which hinders goal attainment.
Job opportunities are also an important factor to consider when choosing a state to live. States with meaningful growth in a variety of industries and strong demand for specialized talent can provide career paths that help Americans expand their skills and maximize income.
In a recent study, Affordable Contractors Insurance The 10 most affordable states for high-income people to live were identified, based on cost of living, wage growth, average salary and more. Here are the 10 most affordable places to live for high income earners.
Florida
- affordability index:66
- average annual salary: $66,352
- average salary increase: 5.1%
- State Income Tax Rates: 0%
- employment rate:96.2%
- labor force participation rate:60%
- earning capacity index:99
colorado
- affordability index:95
- average annual salary: $77,272
- average salary increase: 4.2%
- State Income Tax Rates: 4%
- employment rate:95.8%
- labor force participation rate: 68.8%
- earning capacity index:90
Washington
- affordability index:99
- average annual salary: $92,612
- average salary increase: 5.8%
- State Income Tax Rates: 7%
- employment rate:95.5%
- labor force participation rate:64.6%
- earning capacity index:88
North Dakota
- affordability index:81
- average annual salary: $65,364
- average salary increase:3.3%
- State Income Tax Rates: 1.95 – 2.5%
- employment rate:97.5%
- labor force participation rate:70.5%
- earning capacity index:87
texas
- affordability index:92
- average annual salary: $72,592
- average salary increase: 3.1%
- State Income Tax Rates: 0%
- employment rate:95.9%
- labor force participation rate:64.2%
- earning capacity index:86
South Dakota
- affordability index:62
- average annual salary: $57,304
- average salary increase: 3%
- State Income Tax Rates: 0%
- employment rate:98.1%
- labor force participation rate:69%
- earning capacity index:85
utah
- affordability index:62
- average annual salary: $64,896
- average salary increase: 4%
- State Income Tax Rates:5%
- employment rate:96.7%
- labor force participation rate:70.4%
- earning capacity index:84
alaska
- affordability index:55
- average annual salary: $71,864
- average salary increase: 5.8%
- State Income Tax Rates: 0%
- employment rate:95.3%
- labor force participation rate:66.2%
- earning capacity index:83
new Hampshire
- affordability index:66
- average annual salary: $73,008
- average salary increase: 4.8%
- State Income Tax Rates: 3%
- employment rate:97%
- labor force participation rate:65.4%
- earning capacity index:81
Montana
- affordability index:63
- average annual salary:$58,500
- average salary increase: 5.6%
- State Income Tax Rates: 4.7 – 5.9%
- employment rate:97.1%
- labor force participation rate:63.6%
- earning capacity index:74
“Where you live can dramatically shape your earning potential. States with diverse industries, high demand for skilled workers, and strong economic growth offer far more opportunities for workers to advance their careers and increase their income,” said Sean O’Keefe, CEO and founder of Affordable Contractors Insurance.
Even with rising incomes, where you live matters. Combining high income with affordability is a wise way to prepare yourself to achieve your financial goals.
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