Nevada is the more affordable neighbor of California. It’s an amazing state that has received its fair share of migrants recently. So if you’re planning to move here, you may wonder, how much money do you need to live comfortably in Nevada?
A single person in Nevada needs a net income of $29,074 as a living wage, while a family of 4 requires $84,576. This covers the basic expense of the person or household. But a person would have to earn above the living wage to live comfortably. This isn’t possible with the minimum wage of $21,840,
However, the average salary here is quite high, which shows that most people earn above the minimum wage. Here, we discuss how much money you need to live comfortably in Nevada.
Living Wage in Nevada
Determining what amounts to a comfortable income is usually tricky. This is because different people have different standards of comfort. But the living wage gives an idea of how much a person needs to live in a particular place. This usually depends on the compulsory expenses and obligations that the person or household has with miscellaneous expenses.
In Nevada, a single person will need $29,074 after-tax income as a living wage. This means the person should be earning $33,788 before tax. Although Nevada doesn’t have an income tax, there are still other taxes that anyone in the state would have to pay, such as sales and property taxes.
The living wage for families will depend on the number of the household, and now many people are working. For example, a couple will only need $45,239. Once they start to have kids, the cost increases significantly. A family of 4 where only one of the two adults is working will require $65,471. But if both adults are working, the cost increases to $84,576. This is because they’ll have to spend more on childcare, transportation, and other expenses.
However, the living wage also depends on your location in Nevada. The living wage is lower if you live in the Las Vegas-Henderson-Paradise metro area. A single person requires $28,463. Thus, it’s important to know the cost of living in the area before relocating.
The minimum wage in Nevada is a flat rate of $10.50 per hour, which equals $21,840 annual income. It has been at this rate since 2008, suggesting how dated it has become. Some exemptions from this minimum wage include students, tipped employees, minors and those below 20, etc. The state’s minimum wage is significantly lower than the living wage.
Average Salary in Nevada
It helps to know the average salary and how well it stacks up against the living wage. According to ZipRecruiter, the average salary is $77,256. But most people earn between $52,383 to $78,575. This is quite sufficient for most households in the city, depending on the size, location, and other obligations. The median household income in Nevada is $62,043 in 2020, while the per capita income is $32,629.
Like most states, the experience and qualifications required for a job will influence the pay level. This is why most of the highest paying jobs are formal and technical in fields such as finance, medicine, legal, technology, etc. However, tourism is one of the most important sectors in the state, and management roles in this industry are quite profitable. Truck drivers are also high earners here.
Cost of living in Nevada
Nevada is a slightly expensive state to live in compared to US standards. The cost of living here is 10.5% above the national average. However, whether it’s expensive will depend on your current location. For example, if you’re moving to Nevada from California, the cost of living in Nevada is an improvement. But if you’re moving from Arizona, another neighboring state, Nevada is a costly alternative.
Typical Expenses in Nevada
Here are the basic expenses that you’ll have to spend in Nevada and the cost of each:
This is an essential expense, and generally, one takes a small percentage of the total budget for most people. For example, a single person in Nevada will only spend $3,999 on food annually. The cost is $11,764. However, this will depend largely on eating habits. For example, if you eat out more often, you’ll spend more on food than if you cook regularly.
It’s costly raising a child in Nevada. The average annual cost for raising one child in Nevada is $9,553. This means that childcare is generally one of the biggest money guzzlers for households.
3. Medical Expenses
It’s a common saying that health is wealth, and that’s very true in Nevada. Although the state has a lower healthcare cost than the national average, a single person will spend $2,714. But the cost increases once you have kids. The cost of healthcare for families with
Another major expense here is transportation. This generally includes the cost of gas and insurance if you have a car and the cost of public transport for those who don’t. A single person will spend $4,938 on transportation annually, while a family of 4 spends $13,456. Transportation in Nevada costs 16.7% more than the average nationwide. So, it’s one of the reasons behind the high cost of living in the state. One of the best ways to cut down the cost of transportation in Nevada is by using public transportation more often. This is mostly possible in major cities.
This is generally the biggest expense for most households, and that’s also true here in Nevada. A single person will spend an average of $9,971 on housing. For a family of 4, the cost is $14,659. The prices in Nevada have been rising for the past few years. The typical value of homes now sits at $463,340, which is higher than the US average of over $100k. However, the high cost of homes here is mostly in the Las Vegas metro area. So, you’ll still be able to find less expensive homes in other parts of the state.
Knowing how much you need to live comfortably here is important if you’re planning to live in Nevada. It’ll help you plan your relocation and influence your job search and demands. This state is relatively cheap compared to California and New York, and most families will live comfortably on below $90,000.