Achieving the American Dream often requires a multifaceted approach. Where you live and the job you have often play a key role in shaping the kind of life you want. If you can combine a good-paying job with an affordable place to live, you optimize your abilities to achieve the American Dream.
Looking for a good-paying job can take time, as it’s important to identify what aligns with your interests and utilizes your skill set. Salary is obviously an important part of the puzzle. Still, you also want to consider opportunities for growth, benefits and stability when looking for a good-paying job.
In some cases, moving to a new state may be necessary to advance your career and increase your earnings. Where you live can significantly influence how far your income goes, especially if the state has a high cost of living.
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It’s also important not to overlook the role of taxes when researching. No-income-tax states may seem appealing, but according to Kiplinger, those states have to make up for the lack of tax income in some other way, so your overall tax picture may not be better in a no-income-tax state. If you do move, don’t overlook researching the health of local job markets via the U.S. Bureau of Labor Statistics. The agency regularly updates nationwide job growth and unemployment statistics.
No state is perfect, but some combine relative affordability with good-paying jobs. A recent study from Affordable Contractors Insurance reveals the top 10 states for the highest- and best-paid employees, based on affordability, median annual salary, average wage growth, state income tax rates, employment rate and earning potential.
“Where you live can dramatically shape your earning potential,” said Sean O’Keefe, CEO and founder of Affordable Contractors Insurance. “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.”
Here are the top 10 states for the highest-paid and best-paid employees.
1. Florida
- Affordability index: 66
- Median annual salary: $60,210
- Average wage growth: 5.1%
- State income tax rates: 0%
- Employment rate: 96.2%
- Earning potential index: 99
2. Colorado
- Affordability index: 95
- Median annual salary: $71,960
- Average wage growth: 4.2%
- State income tax rates: 4%
- Employment rate: 95.8%
- Earning potential index: 90
3. Washington
- Affordability index: 99
- Median annual salary: $78,130
- Average wage growth: 5.8%
- State income tax rate: 7%
- Employment rate: 95.5%
- Earning potential index: 88
4. North Dakota
- Affordability index: 81
- Median annual salary: $59,050
- Average wage growth: 3.3%
- State income tax rates: 1.95-2.5%
- Employment rate: 97.5%
- Earning potential index: 87
5. Texas
- Affordability index: 92
- Median annual salary: $61,240
- Average wage growth: 3.1%
- State income tax rate: 0%
- Employment rate: 95.9%
- Earning potential index: 86
6. South Dakota
- Affordability index: 62
- Median annual salary: $53,230
- Average wage growth: 3.0%
- State income tax rate: 0%
- Employment rate: 98.1%
- Earning potential index: 85
7. Utah
- Affordability index: 62
- Median annual salary: $61,070
- Average wage growth: 4.0%
- State income tax rate: 5%
- Employment rate: 96.7%
- Earning potential index: 84
8. Alaska
- Affordability index: 55
- Median annual salary: $69,880
- Average wage growth: 5.8%
- State income tax rate: 0%
- Employment rate: 95.3%
- Earning potential index: 83
9. New Hampshire
- Affordability index: 66
- Median annual salary: $66,110
- Average wage growth: 4.8%
- State income tax rate: 3%
- Employment rate: 97%
- Earning potential index: 81
10. Montana
- Affordability index: 63
- Median annual salary: $55,920
- Average wage growth: 5.6%
- State income tax rates: 4.7-5.9%
- Employment rate: 97.1%
- Earning potential index: 74
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This article originally appeared on GOBankingRates.com: 10 Best States for High-Paying Jobs and Strong Earning Potential
