In New York, a $100 salary feels like $000 due to taxes and the high cost of living.
'16.03.2023'
Nadezhda Verbitskaya
For many, a $100 salary is considered a sign of success. But how realistic this is depends on where you live. In New York, a $000 annual salary ends up being just $100 after taxes and the high cost of living. Crain's new york.
This follows from an analysis of the 76 largest US cities by SmartAsset, a company specializing in providing financial information to consumers. New York came last - here, a person who makes $100 actually takes home $35.
The bottom ten also included San Francisco, Washington DC, Los Angeles, Boston and Seattle. Memphis came out on top, with $100 residents taking home $86 after taxes and cost of living adjustments.
On the subject: Countries where the minimum wage is higher than America
Five U.S. cities where a person with a $100 salary takes home the least (after taxes and adjusting for the cost of living):
- New York, NY - $35
- Honolulu (Hawaii) - $ 36
- San Francisco (California) - $ 36
- Washington DC - $ 44
- Los Angeles (California) - $ 44
“I think it's intuitive: $100, six figures, that seems like a big milestone. But the real value of that salary is very different depending on where you live,” says Suzanne Snyder, financial planner and managing editor for financial education at SmartAsset.
High salaries are certainly more common in New York than in Memphis
According to the US Census Bureau, in 2021 the median household income in New York was just over $70, while in Memphis it was about $000.
But high prices, high taxes and astronomical rents, combined with slowing wage growth and nearly two years of sustained inflation, have forced many big city dwellers to change their lives. New York alone lost more than 300 residents from July 000 to July 2020, according to the Census Bureau. In addition, rents here are now growing faster than in any other city.
Taxes are of particular concern.
State Comptroller Thomas DiNapoli warned against further tax increases. New York taxes may already be crowding out the wealthy, an important revenue base for the city's budget.
Many New Yorkers have moved to low-tax areas like Texas and Florida, especially since telecommuting allows for greater freedom of movement. Maybe it's not such a bad financial decision. Texas is home to seven of the 10 cities with the highest real wage income of $100.
