If you’re seriously thinking about New York City as a place to live, you’ll want to be sure that you can do so within your means. A wide range of salaries exists in the Big Apple, so it’s important to know what to expect. Many factors will eventually determine your ability to balance your expenses with your paycheck. Just like any city you choose to live in, budgeting and having a financial plan are of crucial importance.
Do you have questions about your long-term financial plan? Speak with a financial advisor today.
What Is the Average Salary in New York City?
According to the U.S. Census Bureau’s 2023 American Community Survey (ACS) 5-Year Estimates, the average household income in New York City was $127,894. “Household income,” as measured by the Census Bureau, takes into account the income of everyone who lives inside a single housing unit. This includes anyone from individuals, groups of roommates and families. Keep in mind that this figure represents the gross amount, before taxes and other deductions.
On the other hand, median household income represents the middle number in the list of all household incomes. Half of all earners make more than the median and half of all earners make below it. In New York City, the median household income is $79,713, according to the same dataset from the Census Bureau. This figure takes into account everyone 16 and older with earnings.
Per capita income, on the other hand, is income averaged for everyone 16 or older living in the city. This makes it reliably much lower than all other figures because it includes non-earners as well. For New York City, this number is $50,776, according to the same Census Bureau figures.
Income Figures for New York City
| Type | Income Amount |
| Average Income | $127,894 |
| Median Income | $79,713 |
| Per Capita Income | $50,776 |
How Does the Average Salary in NYC Compare?
The average income in NYC is well above the national average of $110,491, according to the Census Bureau’s 2023 ACS 5-Year Estimates for the U.S. More specifically, the average household income in New York City is almost 16% higher than the national average.
Unfortunately, the cost of living in New York City is also higher than the national average. The price of most expenses, from rent and transportation to food and entertainment, is relatively high. If you want to live in the Big Apple, you’ll need to be smart about your savings.
What to Know About Salaries in New York City
For what it’s worth, people do make it in New York, and it doesn’t always require spending a fortune. Still, housing in Manhattan certainly isn’t cheap. New York City ranks among the priciest large U.S. cities in terms of the income required to afford rent.
The average apartment in Manhattan is 704 square feet, about the size of a one-bedroom apartment. The average rent in Manhattan is $5,025, according to RentCafé data from November 2024.
Can You Live in NYC on $100k?
Earning $100,000 annually in New York City may seem substantial, but after accounting for taxes and the high cost of living, its value diminishes significantly. According to a 2023 SmartAsset study, a $100,000 salary in New York City is effectively worth only $35,791 when adjusted for these factors.
Further analysis indicates that to achieve the purchasing power of $100,000 in a city with a lower cost of living, one would need to earn approximately $312,000 in Manhattan.
While living on $100,000 in New York City is possible, it often necessitates careful budgeting and lifestyle adjustments. Many residents find that housing, transportation and daily expenses consume a large portfion of their income, leading to a reassessment of spending habits to maintain financial stability.
Bottom Line
Many cities show a clear relationship between their income numbers and cost of living requirements. New York City is no different. However, these factors come into play at much higher stakes in the Big Apple, as rent costs and income levels come in well above most other cities in the U.S., even major ones. In turn, it’s paramount that New York City residents adequately plan out their finances. More specifically, build a budget for yourself and your family, making sure to account for key expenses such as savings and retirement.
Tips for Planning for Your Financial Future
- Especially if you’re starting to earn more money, it could be time to consider working with a financial advisor to help you achieve your savings and retirement goals. Finding a financial advisor doesn’t have to be hard. SmartAsset’s free tool matches you with vetted financial advisors who serve your area, and you can have a free introductory call with your advisor matches to decide which one you feel is right for you. If you’re ready to find an advisor who can help you achieve your financial goals, get started now.
- No matter where you live, striving to meet your dream salary also means that you should be mindful of how you’ll support yourself after your working years. Though it’s never too early to start planning for retirement, many people unfortunately often overlook this aspect of being in the working world.
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