Summary
A study by ConsumerAffairs examined how far a $100,000 salary can stretch in various U.S. cities, focusing on differences in taxes and living costs. It found that this salary goes furthest in Southern cities, especially in Texas, while providing the least purchasing power in expensive cities on the West Coast and East Coast.
Key Facts
- The study analyzed the 100 largest U.S. cities to see how far $100,000 goes after taxes.
- Cities in Texas like Laredo and El Paso offer high purchasing power due to no state or local income taxes.
- In Laredo, a $100,000 salary equals approximately $89,864 in purchasing power.
- Housing prices in Texas are lower due to less strict regulations and new home developments.
- Expensive cities like San Francisco and New York City offer much less purchasing power, around $62,371 in San Francisco.
- These expensive cities have high state and local taxes, affecting take-home pay and living costs.
- Median U.S. household income was $83,730 in 2024, with an increase in lower-income households living paycheck to paycheck.
