$100K salary feels like $62K in some cities, study finds

(InvestigateTV) — A $100,000 salary sounds like a dream for many families, but a new study from ConsumerAffairs found that in some cities that money disappears fast.

The report looked beyond the six-figure milestone and focused on how much $100,000 really gets workers after taxes and how paychecks stretch in different locations.

“We started with the flat $100,000 annual salary. We calculated estimated take home pay by subtracting your federal income taxes, your Social Security, your Medicare. And then we did state by state. So, we factored in state and local taxes because some places you kind of hit double whammy there,” said Dayna Edens with ConsumerAffairs.

The study found that in some cities a $100,000 salary went far, but in places like San Francisco that salary was really like making $62,000 a year.

Edens said it’s important to do research where you live to see how far your money really travels.

“Keep in mind, you know, is a city going to be affordable? You know, when you get that job offer $100,000, you’re like, ‘wow, this is the one for me,’ actually. Maybe look on Zillow, look online, see what the housing market looks like, see what the rent prices like, see if you can actually make that work. You know, there are some costs of living and regional price parity calculators out there. Throw your salary in with the city and see what pops out,” Edens said.

If a state doesn’t have a state income tax, that doesn’t automatically mean workers are better off. Lower income taxes can be offset by high housing costs, property taxes and insurance premiums, Edens said.