$100,000 sounds like a solid income. And it is, in the right city. But in the wrong one, that same paycheck can feel surprisingly thin once taxes and living expenses take their cut.
Consumer Affairs looked at tax rates across the largest U.S. cities to find out exactly where $100,000 goes the furthest. The results might surprise you, especially if you are thinking about where to settle down in retirement.
The Cities Where Your Dollar Goes the Farthest
Three Texas cities top the list: Laredo, El Paso, and Lubbock. In all three, the take-home pay on a $100,000 salary comes out to $78,901. Texas has no state or local income tax, which makes a big difference.
Corpus Christi, Texas, comes in fourth. Memphis, Tennessee, takes fifth place, it also has no state or local income tax. San Antonio, Texas, rounds out the top six.
From there, the top ten continues with:
- New Orleans, Louisiana, $76,276 in take-home pay
- Tulsa, Oklahoma
- Wichita, Kansas
- Fort Wayne, Indiana
None of those last four cities charge a local income tax, with one small exception. Fort Wayne residents pay $1,574 a year in local tax.
Where $100,000 Doesn’t Go as Far
On the other end of the list, San Francisco is the toughest city in America for that same salary. After taxes, a $100,000 earner in San Francisco takes home just $62,371. That is more than $16,000 less than someone in Laredo making the exact same amount.
The other cities where purchasing power takes a hit include Oakland, New York City, Irvine, Anaheim, Santa Ana, Long Beach, Los Angeles, Honolulu, and San Jose. Take-home pay in those cities generally falls in the $70,000 to $73,000 range. High state income taxes are the common thread.
What This Means If You’re Thinking of Moving
Overall, states like Texas, Tennessee, and Indiana give your money more room. States like California and Hawaii take a larger share.
That said, affordability is only part of the picture. The source notes that many of the more expensive cities are also known for safety and a high quality of life. The most affordable cities can carry higher crime rates and fewer amenities.
It is a trade-off worth thinking through carefully, especially if a fixed income is part of your retirement plan. Where you live is one of the biggest financial decisions you can make.
