Texas is one of the cheapest states, so you won’t need as high of a salary to live comfortably in Dallas compared to the rest of the country.

Annual expenses usually amount to $39,768 for single persons, which is much more than what Dallas’ minimum wage earners can afford. The minimum wage is just $15,080 for private-sector workers and $32,240 for government workers.

A good salary is anything over $60,000 in gross annual income, and it’s important to know why. Now, this may seem like a lot, but it’s a lot lower than the national living wage of $104,077 a year.  

Here’s a breakdown of what these salaries can provide you with.

What is considered a good salary in Dallas for 2023?

A good salary in Dallas is at least $60,000 a year, leaving you with $46,593 after taxes. For families of three or four, $74,880 a year is a good salary.

This is enough to provide for a single person’s food, bills, transportation, and healthcare while still leaving enough for indulgences. 

You may have noticed that Dallas’ median salary is pretty low after tax compared to the national median of $58,260, but it’s just because of the city’s low cost of living. 

The average single Dallas resident spends just $18,600 a year on basic necessities. 

Estimated Monthly Expenses vs a Good Salary in Dallas

A good salary in Dallas is at least $60,000 in gross income, meaning a wage of $28 per hour. The average annual expenses for a single person in Dallas total $39,768.

These only include the basics like rent, transportation, food, and health. $60,000 leaves you with enough for leisure and savings.

The only local taxes are sales and property taxes. Adding all this, residents’ taxes in Dallas are 14.15% in federal income taxes, 7.65% in FICA, and 8.25% in sales tax.

Given this, here are the monthly expenses a net income of $46,920 is expected to cost in Dallas. The total costs come up to $3,314, leaving $596 a month for personal indulgences or savings.

With a gross income of $100K, you will have $74,515 in disposable income. Naturally, more luxurious living conditions can be afforded such as what can be seen here.

Total expenses come up to roughly $4,152 a month, leaving $1,790 for leisure or savings.

Gross vs Net Salary

Dallas has no local income tax, so you only have to worry about federal taxes. The federal income tax rate is 14.15% plus 7.65% for social security. 

Overall, Dallas salaries get a deduction of 21.8% per year. 

Gross salary refers to the total amount of money earned by an individual before any deductions or taxes are taken out. This is what an employee is paid by their employer before any adjustments or reductions are made. 

Gross salary is used as the basis for calculating deductions, taxes, and other withholding. It is also the number that is used to determine an employee’s eligibility for benefits and other compensations like insurance.

Net salary, on the other hand, is the amount of money an individual takes home after deductions and taxes have been taken out. It is what an individual can use to cover their living expenses such as rent, food, and other bills.

Based on these rates, a gross salary of $60,000 with a net income of $46,920 is needed to live comfortably in Dallas. A good bookkeeper can help you keep track of your financials.

Here is a breakdown of how much will be deducted from a $60,000 salary.

Salaries of the Most Common and In-Demand Jobs in Dallas

Dallas’ median salary is $45,200, which is below the living wage. This means that the majority of workers in Dallas earn less than the minimum to live comfortably.

The most common jobs pay from $21,779 to $76,924. The most in-demand jobs, on the other hand, pay from $23,274 to $94,795.

The highest-paying jobs in Dallas are mostly in healthcare and tech, but these represent just a small percentage of the city’s workforce.

Here’s a list of the most common and in-demand jobs in Dallas by Zippia.

Dallas has a noticeable gender wage gap, so not all workers in the same field earn the same amount. Part-time employees also earn half as much as full-time employees. 

Here’s some additional information on Dallas’ average earnings. 

Average Salary in Dallas in 2023

Dallas’ average salary is $65,247 before tax or $31.37/hr. This salary is more common in healthcare, tech, and more senior roles. 

For reference, here are the jobs in Dallas that pay at least the average salary.

The Average Cost of Living in Dallas

The average cost of living in Dallas amounts to $3,314 a month. You can expect to spend a total of $1,104 without rent and hospitalization.  

The average rent in Dallas for a one-bedroom apartment is $1,216/month, but it will vary depending on the landlord and neighborhood.

Basic necessities minus rent include utilities, food, healthcare, and transportation.

After the expenses above, you’ll be left with roughly $2,700 left to spend for rent. Here’s a list of the least and most expensive neighborhoods in Dallas you can afford.

Assuming $3,314 in monthly expenses including rent and healthcare, there will be $568 left for personal spending. Personal expenses vary from person to person, so here’s a list of what to expect.

Salary Needed to Live Comfortably in Dallas

Dallas is in the top 3 most expensive cities in Texas, so a salary of $60,320 a year is needed to live comfortably. This range is enough to let a single person cover everything they need. 

Bigger households, like a family of three, need $74,880 in combined income to live comfortably. 

All in all, here is what a comfortable salary will cover for singles and families.

Top 10 Highest Paying Jobs in Dallas

The highest-paying jobs in Dallas are mostly C-level executives and healthcare professionals. 

These jobs consist of roughly 20% of the Dallas labor force and get paid from $231,467 to $326,301, while an associate professor of surgery is the only one to earn above $500,000 at $750,000.

Here are the top 10 jobs with the highest salaries.

What is the middle-class salary in Dallas?

Middle-class salary in Dallas ranges from $51,000 to $152,000. Those in the middle class are the ones that earn enough to sustain themselves while still affording luxuries like private education.

What is a good salary in Dallas for a family?

$74,880 is a good salary for families with one or two children in Dallas. This range is enough to pay the bills and send the kids to school.

For reference, here’s what families can expect to spend while living in Dallas. 

Does Dallas have a high cost of living?

Dallas’ cost of living is not that high, but its cost of living index is higher than the state’s. The cost of living index uses the national average as the base point, or 100. 

Dallas’ cost of living index is 101, meaning it’s 1% more costly than the national average. Meanwhile, Texas’ index is 94.2.

What is considered rich in Dallas?

A salary that is considered rich, or among the top 5% of Dallas residents, is at least $102,910. This range is only earned by 5% of the population.

Jobs that earn this much are usually C-level executives and healthcare professionals.