So how far does a $100,000 salary go these days, what with inflation and all? It turns out that the answer to that question really depends on where you live.
As pointed out by NASDAQ 51% of people who earn more than $100,000 reported living paycheck to paycheck in December 2022, an increase of 7% from a year earlier, according to a recent survey from PYMNTS and LendingClub.
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To get a sense of what a six-figure salary can actually get you in a time of rising food costs and a housing market with increasingly limited supply, SmartAsset compared the after-tax income in 76 of the largest U.S. cities, and then adjusted those figures against the cost of living in each place.
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So here’s the cities where your money goes the farthest, in terms of cost of living.
1. Memphis, Tennessee
A person making $100,000 per year in Memphis takes home $74,515 after federal and local taxes. Memphis’ cost of living is nearly 14% lower than the national average, which means that after-tax income is worth $86,444 when adjusting for the cost of living.
2. El Paso, Texas
A $100,000 salary in El Paso amounts to $84,966 after subtracting taxes and adjusting for the local cost of living. El Paso, a city of over 678,000 residents, has a cost of living that is just 87.7% of the national average.
3. Oklahoma City, Oklahoma
A $100,000 in Oklahoma City amounts to $70,302 after taxes and adjusting for the local cost of living. Oklahoma City has the lowest cost of living overall, at 83.2% of the national average – the lowest out of all 76 cities in the study. A $100,000 salary is worth $84,498 in Oklahoma City after adjusting for the cost of living.
4. Lubbock, Texas
Those five zeroes end up looking like $74,515 after taxes. The cost of living in Lubbock is just 89.4% of the national average, which rounds out to $83,350 after adjusting for the cost of living.
5. Houston, Texas
Everything is bigger in Texas, including how your salary can actually feel, it seems, as seven out of the 10 cities in the SmartAsset survey are located in the Lone Star state. As far as Houston is concerned, a $100,000 salary amounts to $74,515 after taxes, but it's worth $81,350 when adjusting for Houston's cost of living, which is 91.8% of the national average.
7. Three-Way Tie: San Antonio, Fort Worth and Arlington, Texas
Three Texas cities tie for seventh. In all three, a $100,000 salary equals $74,515 in take home pay. That equals $80,124 when you adjust for the cost of living in all three cities, which is 7% lower than the national average.
10. St. Louis, Missouri
The home of America's most beloved arch can also boast a low-cost of living, at 87% of the national average. A $100,000 salary amounts to $69,531, which feels like $79,921 after adjusting for the cost of living.
How Far Does A $100,000 Salary Go In New York?
In New York, $100,000 amounts to just $35,791 when you factor in taxes and the cost of living. The city ranked the lowest in the survey.
If you’re curious how you can stretch your salary without moving to a different city, NASDAQ recommends contributing the maximum yearly amount to your retirement accounts which help you reduce your tax bill in the current year. It’s also wise to work with a financial advisor to learn how to be more tax-efficient in your day to day life.
