Earning six figures was once widely viewed as a ticket to a comfortable middle-class life. But rising housing costs, taxes, and everyday expenses have reshaped what $100,000 actually means in different parts of the United States.
A recent study by ConsumerAffairs found that while a $100,000 salary stretches far in many Southern and Midwestern cities—particularly in Texas—it delivers significantly less purchasing power in high-cost coastal metros, especially in California and New York.
The findings underscore a simple reality: where you live can dramatically change the real value of your income.
National Income Context
According to US Census Bureau data, median household income reached $83,730 in 2024, up slightly from $82,690 in 2023. While incomes have grown steadily, many households continue to feel financial pressure.
Data from the Bank of America Institute shows that 29% of lower-income households were living pay cheque to pay cheque in 2025, compared with 28.6% in 2024 and 27.1% in 2023.
These figures highlight why purchasing power — not just salary size — has become a key financial benchmark.
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How ConsumerAffairs Measured Purchasing Power
ConsumerAffairs analysed tax rates in the 100 largest US cities to calculate the take-home pay from a $100,000 salary. The organisation then adjusted post-tax income using regional cost parity data to reflect local variations in housing, goods, and services.
As Sebastian Fidilio, an accountant in New York and founder of sebCFO, explained:
‘Gross salary is what most people focus on, but what really matters is purchasing power — what’s left after taxes plus local prices. It’s not what you make — it’s what you keep that matters.’
Top 10 Cities Where $100,000 Goes Furthest
According to the study, these cities maximise the value of a $100,000 income:
- Laredo, Texas
- El Paso, Texas
- Lubbock, Texas
- Corpus Christi, Texas
- Memphis, Tennessee
- San Antonio, Texas
- New Orleans, Louisiana
- Tulsa, Oklahoma
- Wichita, Kansas
- Fort Wayne, Indiana
In these cities, $100,000 feels like more than $80,000 in purchasing power compared with the national average.
Laredo ranks first. With no state or local income tax, a $100,000 salary translates into approximately $89,864 in adjusted purchasing power.
Texas cities dominate the top of the rankings in part due to lower housing costs and the absence of state income tax.
Cities Where $100,000 Goes the Shortest Distance
At the other end of the spectrum, high-cost coastal cities significantly reduce the effective value of six-figure incomes.
The 10 lowest-ranked cities are:
- San Francisco, California
- Oakland, California
- New York City, New York
- Irvine, California
- Anaheim, California
- Santa Ana, California
- Long Beach, California
- Los Angeles, California
- Honolulu, Hawaii
- San Jose, California
In these cities, $100,000 translates to less than $66,000 in adjusted post-tax purchasing power.
In San Francisco and Oakland, the effective value drops to about $62,371 — more than $20,000 below Laredo’s adjusted figure.
California dominates the bottom rankings due to its layered tax structure, which includes high state income taxes in addition to federal and payroll taxes. Housing prices in the San Francisco Bay Area also remain significantly above the national average, further limiting affordability.
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