A $100K Salary Can Still Shockingly Land You in the Middle Class in the South

Earning a six-figure salary used to be the hallmark of financial success but now doesn’t seem to stretch your means past the financial status of the middle class. This is true for many places in the United States. Even in Southern states, bringing in a salary of $100,000 or more might not mean you’re living the high life.

This phenomenon of a good income still resulting in a paycheck-to-paycheck cycle is largely driven by the rising cost of living, housing market pressures and shifts in lifestyle expectations.

Housing is one of the largest contributors to this financial paradox and typically takes up the largest portion of your monthly expenditures, especially when 30% or more of your income is just to secure a place to live. Additionally, utility costs such as electricity and water have become more expensive as energy demands surge, especially in states with hot, humid climates.

While a $100,000 salary may once have been a sign of wealth, now it just seems like the running rate for doing business. GOBankingRates has conducted several studies analyzing what varying incomes qualify as middle class and the reasons behind the statistics. Here are some key takeaways from national averages for comparison with how the Southern states stack up:

• National median household income: $75,149
• Lowest end of average middle-class income: $50,099
• Highest end of average middle-class income: $150,298

Inflation affects every aspect of life, from grocery bills to housing prices. Over the past decade, the cost of goods and services has risen dramatically, and even Southern states — once known for their affordable living standards — are not immune. For these Southern states, there are many contributing factors to answering the question of why making over $100,000 can still land you in the middle class. 

Also see how far a $100,000 salary goes in 50 cities.

• Lowest end of middle-class income: $39,739
• Highest end of middle-class income: $119,218

The median household income in Alabama is $59,609 but making nearly twice that will not move you out of the middle class. GOBankingRates found the most affordable city in Alabama for a middle-class income is West End-Cobb Town, which has an estimated cost of living of $27,900 a year.

• Lowest end of middle-class income: $37,556
• Highest end of middle-class income: $112,670

Even though Arkansas has a median household income of $56,335, this amount is nowhere near what you would need to make to approach the upper class. However, GOBankingRates did find Marvell to be the most affordable city for the middle class thanks to statistics like the monthly expenditures only averaging about $1,685.

• Lowest end of middle-class income: $52,883
• Highest end of middle-class income: $158,650

You can earn over $150,000 in Delaware and still be considered to be pulling in a middle-class income. Moving to a cheaper city could help you stretch your finances. The most affordable city for the middle class is New Castle. This is in large part thanks to the annual median savings of $51,976.

• Lowest end of middle-class income: $45,278
• Highest end of middle-class income: $135,834

If you are planning on retiring in Florida, it’s good to know exactly how far your fixed income will get you. The median household income in the Sunshine State is $67,917 and this is on the low end of being able to live comfortably.

• Lowest end of middle-class income: $47,570
• Highest end of middle-class income: $142,710

By Georgia standards, you can make a $140,000 annual salary and still be only at the top end of the middle-class financial spectrum. The median household income for the state is $71,355.

• Lowest end of middle-class income: $40,122
• Highest end of middle-class income: $120,366

GOBankingRates found the most affordable city for the middle class in Kentucky to be Wallins Creek, where the average monthly mortgage payment is a mere $449. This, coupled with the fact that the median household income in the state is $60,183, means your middle-class income can afford you a few more creature comforts.

• Lowest end of middle-class income: $38,568
• Highest end of middle-class income: $115,704

The state of Kentucky has a median household income of $60,183, which is lower than the national median of $75,149. With the rising cost of living, housing prices and groceries across the board, it’s no wonder that making over $100,000 a year in Louisiana still will land you in the middle class.

• Lowest end of middle-class income: $65,640
• Highest end of middle-class income: $196,922

Though Maryland has one of the higher state median household incomes, at $98,461, you would have to earn almost $200,000 a year to push past the middle class to the upper class.

• Lowest end of middle-class income: $35,323
• Highest end of middle-class income: $105,970

Compared to national statistics, Mississippi has one of the lowest ranges for incomes to be considered middle class. Just over $35,000 gets you into the middle class of Mississippi, but it still takes over $105,000 to get you out.

• Lowest end of middle-class income: $44,124
• Highest end of middle-class income: $132,372

The state median income for North Carolina is $66,186, which is just slightly below the national median. GOBankingRates found the most affordable city for someone with a middle-class income is Lilesville, where the average monthly cost of expenditures is estimated to be $1,896.

• Lowest end of middle-class income: $40,909
• Highest end of middle-class income: $122,728

The income range for what qualifies as middle class in Oklahoma includes a gap of over $80,000. The state has a median household income of $61,364, which is on the lower end of that spectrum.

• Lowest end of middle-class income: $42,415
• Highest end of middle-class income: $127,246

Southern charm will get you far in South Carolina, but a paycheck over $120,000 sill won’t move you past the middle class toward a wealthier status. The median income for the state is $63,623; but, even if you doubled that amount, you would still land in the middle class.

• Lowest end of middle-class income: $42,690
• Highest end of middle-class income: $128,070

The median household income for the state of Tennessee is $64,035, which still falls toward the lower end of middle-class earners. However, GOBankingRates found the most affordable city to be Obion, which has an estimated average mortgage payment of $736 per month.

• Lowest end of middle-class income: $48,690
• Highest end of middle-class income: $146,070

Everything is bigger in Texas, including the amount you need to earn to be considered richer than the middle class. You can make nearly $150,000 there and still not be part of the upper echelon of income class brackets.

• Lowest end of middle-class income: $58,165
• Highest end of middle-class income: $174,498

Virginia has a higher median income of $87,249 per year, which puts it above the national median income of $75,149. However, you can earn nearly $175,000 in salary and still be in the middle class financially.

• Lowest end of middle-class income: $36,811
• Highest end of middle-class income: $110,434

GOBankingRates found the most affordable city for the middle class in West Virginia is Davy. Even though it’s on the cheaper side, the average total cost of living is estimated to be $3,170 a month.

Methodology: For this piece, GOBankingRates found every state’s median household income, sourced from the 2022 American Community Survey conducted by the U.S. Census Bureau. Then by following the Pew Research Center’s definition of middle-class income, “two-thirds to double the income of an area,” GOBankingRates found the middle-class income for every state. All data was collected on Feb. 27, 2024.