A $300,000 Salary Feels Like $100,000 in These Three Expensive Cities, Analysis Finds
Residents of several cities in the United States require a salary much higher than $100,000 to feel as if they are earning six figures due to elevated costs of living and aggressive taxes, according to a recent analysis from SmartAsset.
The financial technology company found that residents of Honolulu, New York City, and San Francisco require salaries between $310,000 and $312,000 to earn the equivalent of $100,000 in an average part of the country since high earners in the three cities face tax rates above 40% and living expenses more than 80% above the national average.
“Those with a $100,000 salary earn more than double the median individual income for 2021, which might imply financial comfort on first glance. But when accounting for taxes and cost of living in America’s largest cities, those six figures will feel much smaller,” SmartAsset said in the analysis. “Ultimately, to have the purchasing power of $100,000, you will have to earn a substantially higher salary.”
Oakland, Los Angeles, and Long Beach followed the other cities with respect to the gross income needed to “feel like” one takes home $100,000. Residents of the cities see costs of living roughly 50% greater than the national average, partially due to expensive real estate, while income taxes approach 40% in Oakland and nearly 38% in Los Angeles and Long Beach. “California cities require the highest gross incomes of any state,” SmartAsset noted. (Read more from “A $300,000 Salary Feels Like $100,000 in These Three Expensive Cities, Analysis Finds” HERE)
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