Is $100,000 a Good Salary? It Depends Entirely on Where You Live
In some cities $100K is upper middle class. In others it barely covers rent. Here is exactly what six figures buys you in 20 major US cities after taxes and cost of living.
The $100,000 Question
A $100,000 salary sounds like a significant milestone, and in many parts of the country it absolutely is. In others, it puts you squarely in the middle class struggling with housing costs. The difference comes down to three factors: state income tax, local cost of living, and housing market conditions.
Take-Home Pay by State on $100K
After federal taxes (approximately 22% effective rate), a $100K earner keeps roughly $78,000 before state taxes. Here is what state tax does to that:
- Texas, Florida, Washington (no state income tax): ~$78,000 take-home
- Arizona (2.5% flat tax): ~$75,500 take-home
- Illinois (4.95%): ~$73,050 take-home
- New York (6.85%): ~$72,150 take-home
- California (9.3%): ~$68,700 take-home
Purchasing Power by City
Taking the Texas take-home of $78,000 as the baseline and adjusting for cost of living:
Houston, TX (COL 91): $78,000 has the purchasing power of $85,700 nationally. Dallas, TX (COL 96): $78,000 ≈ $81,250 nationally. Phoenix, AZ (COL 100): $75,500 ≈ $75,500 nationally. Chicago, IL (COL 107): $73,050 ≈ $68,270 nationally. Seattle, WA (COL 150): $78,000 ≈ $52,000 nationally. New York City (COL 187): $71,150 ≈ $38,050 nationally. San Francisco (COL 224): $68,700 ≈ $30,670 nationally.
The Bottom Line
$100,000 is an excellent salary in Houston, Dallas, Phoenix, or most of the Midwest and South. In Seattle it is comfortable. In New York or San Francisco it is a middle-class income that requires careful budgeting around housing.