Your $100,000 Salary Is Only Worth $31,000 In NYC

Nowadays, a dollar doesn’t get you where it used to—and that’s all because of inflation. It seems like inflation is the only thing anyone seems to be talking about, so we don’t blame you if you’re sick of hearing about it. Unfortunately, it’s the reality of what life is like today.
A new study conducted by SmartAsset, a financial technology firm based in New York City, is revealing just how much inflation is affecting us.
The company looked at 72 of the biggest cities in the United States to determine what $100,000 is worth after taxes.
An income of $100,000 sounds like a lot of money. For a long time, a six-figure salary has been considered the benchmark of success. It is highly coveted because it represents financial security and living comfortably.
Earn six figures, and you’ll be set for life with fancy dinners, luxury vacations, your dream home, and enough disposable cash to make it rain every weekend.
However, in today’s economy, a $100,000 salary can look very different depending on where you are located. In some places, $100,000 is barely keeping your head above water rather than living large.
Of all the 72 cities that were analyzed, $100,000 has the least stretch in New York City. According to SmartAsset’s data, a yearly income of $100,000 in New York City amounts to just $35,791, thanks to the cost of living.
The cost of living takes into account the price of groceries, housing, utilities, transportation, and miscellaneous goods and services.
In Manhattan, it equates to only $31,000. It’s more affordable in Brooklyn and Queens, though, where $100k is worth $43,376 and $49,978, respectively.

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The average rent in New York is $3,450 per month for a studio apartment to $7,995 for a four-bedroom apartment.
Over the years, studio rental prices have increased by $125, or 3.78 percent, while one-bedroom rentals have increased by $121, or 2.96 percent.
Among the bottom five are Honolulu, Hawaii ($39,148); San Francisco, California ($40,997); Los Angeles, California ($47,762); and Washington, D.C. ($48,734).
You can get the most bang for your buck in El Paso, Texas, especially since there are no state or local taxes there.
A $100k income in El Paso equates to $88,840. Four other cities in Texas made the top 10, including Corpus Christi, San Antonio, Lubbock, and Houston.
The study also shows that residents of Baltimore face the highest income taxes. At the $100k income level, a Baltimore resident loses up to 32.7 percent of their annual income to federal, state, and local taxes.
With inflation rising faster than ever, it looks like the days of six figures securing financial freedom are fading fast, replaced by a reality of student loans, bills, and splurges on $8 iced coffees.
You can view the study here.
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