How Much House Can I Afford on My Salary?
Calculate your maximum home price and monthly mortgage budget using your real 2026 take-home pay — including the new No Tax on Overtime deductions that increase your qualifying income.
2026 Home Affordability Calculator
Estimate only. Based on 28% front-end / 43% back-end DTI guidelines. Does not include property tax, homeowners insurance, HOA, PMI, or closing costs. Consult a licensed mortgage professional before making purchase decisions.
How Much House Can You Afford on Your Salary? The 2026 Rules
The single most important number when buying a home in 2026 is not your gross salary — it is your monthly take-home pay after taxes. Lenders qualify you on gross income, but your real-world budget runs on net pay. This guide walks you through both the lender’s math and the real-money math, updated for the 2026 One Big Beautiful Bill Act (OBBBA) overtime and tips tax exemptions.
The 28/36 Rule: Still the Gold Standard in 2026
Conventional mortgage lenders apply two limits simultaneously:
- Front-end ratio (28%): Your monthly mortgage payment — principal, interest, taxes, and insurance (PITI) — should not exceed 28% of your gross monthly income.
- Back-end ratio (36–43%): All monthly debt payments combined — mortgage plus car loans, student loans, and credit cards — should not exceed 43% of gross monthly income for most conventional loans (the FHA limit goes to 50%).
The calculator above applies these rules to your after-tax net pay, which gives you a more realistic picture of what you can comfortably afford each month without stressing your budget.
2026 Home Affordability by Salary: Quick Reference Table
| Annual Salary | Monthly Net Pay (Est.) | Max Monthly Mortgage (28%) | Affordable Home Price (20% down, 6.8%) |
|---|---|---|---|
| $40,000 | ~$2,780 | ~$778 | ~$115,000 |
| $50,000 | ~$3,380 | ~$947 | ~$140,000 |
| $60,000 | ~$3,940 | ~$1,103 | ~$163,000 |
| $75,000 | ~$4,800 | ~$1,344 | ~$200,000 |
| $90,000 | ~$5,650 | ~$1,582 | ~$235,000 |
| $100,000 | ~$6,150 | ~$1,722 | ~$255,000 |
| $120,000 | ~$7,200 | ~$2,016 | ~$299,000 |
| $150,000 | ~$8,800 | ~$2,464 | ~$365,000 |
Single filer, no state income tax, 20% down payment, 6.8% 30-year fixed rate, no existing debt. Use the calculator above for your exact figures.
How the 2026 OBBBA Increases Your Home Buying Power
The One Big Beautiful Bill Act, effective for the 2026 tax year, introduced two deductions that directly increase the net pay workers take home — and therefore the mortgage they can comfortably service:
- No Tax on Overtime: The first $12,500 of overtime wages is excluded from federal taxable income. For a worker in the 22% bracket, this means up to $2,750 more in annual take-home pay.
- No Tax on Tips: The first $25,000 in qualified tips is federally tax-exempt. A tipped worker earning $20,000 in tips saves up to $4,400 annually in the 22% bracket.
Hidden Costs Lenders Don’t Include: What You Actually Need
The mortgage payment is only one part of homeownership costs. Before committing to a purchase price, budget for:
- Property taxes: Average 1.1% of home value annually, but ranges from 0.3% (Hawaii) to 2.4% (New Jersey)
- Homeowners insurance: $1,200–$3,000/year nationally; higher in hurricane and wildfire zones
- PMI: If your down payment is under 20%, add 0.5–1.5% of the loan annually until you reach 20% equity
- HOA fees: $200–$600/month in many communities — this counts toward your DTI
- Maintenance reserve: Budget 1% of home value annually for repairs
- Closing costs: 2–5% of the loan amount, typically $6,000–$18,000 on a $300,000 home
How Much House Can I Afford on a $50,000 Salary?
On a $50,000 gross salary as a single filer with no state income tax and no existing debt, your estimated monthly net take-home pay in 2026 is approximately $3,380. Applying the 28% rule gives a maximum comfortable mortgage payment of $947/month. At a 6.8% 30-year fixed rate with 20% down, this supports a purchase price of approximately $138,000–$145,000.
If you have $10,000 in overtime income and claim the OBBBA exemption, your net pay increases by roughly $220/month, pushing your affordable home price up to approximately $165,000.
How Much House Can I Afford on a $100,000 Salary?
A six-figure salary positions you well in most non-coastal markets. As a single filer earning $100,000 with no state income tax and no significant existing debt, your estimated monthly net pay in 2026 is approximately $6,150. At 28% front-end DTI, your maximum mortgage payment is approximately $1,722/month — supporting a home price of approximately $254,000 with 20% down, or around $230,000 with a 10% down payment after accounting for PMI.
How Much House Can I Afford on a $75,000 Salary?
A $75,000 salary is close to the US median household income. As a single filer with no existing debt in a no-state-tax state, your monthly net pay is roughly $4,800. Your maximum comfortable mortgage sits around $1,344/month, supporting a home price of approximately $198,000–$210,000 with 20% down. For married couples filing jointly on $75,000 combined, the lower effective tax rate pushes take-home up by roughly $400/month, increasing buying power to approximately $250,000.
Improving Your Home Buying Power in 2026
1. Pay Down High-Balance Debt First
Every $300/month in existing debt payments reduces your maximum home price by approximately $45,000. Eliminating a car payment before applying for a mortgage is one of the single most impactful moves a buyer can make.
2. Leverage OBBBA Overtime and Tips Deductions
If you earn overtime or work in a tipped industry, ensure your lender uses your OBBBA-adjusted income when underwriting. Not all loan officers are familiar with the 2026 changes — the higher net pay from these exemptions can meaningfully shift your qualifying range.
3. Target No-State-Tax States for Maximum Buying Power
Moving from California (effective ~9.5% state rate) to Texas (0% state income tax) adds approximately $4,000–$8,000 annually in take-home pay for a $100,000 earner — the equivalent of adding $60,000–$120,000 in home buying power at current rates.
4. Increase Your Down Payment to Eliminate PMI
Reaching the 20% down payment threshold removes PMI, typically saving $100–$400/month. That freed-up cash can either reduce financial stress or be redirected into a higher purchase price.