A recent study determined that a New Yorker would only need to bring in $35,000 to live comfortably on a salary of $100,000 per year.
The value of a six-figure wage is steadily dwindling as a result of strong inflation, which reduces its purchasing power and raises the cost of living.
SmartAsset, a personal finance advisory firm, measured the impact in 76 US cities and found that it was universal. The wage is only $86,444 even in Memphis, Tennessee, where it goes the farthest. When adjusted for taxes and living expenses, a $50,000 salary in New York City is only worth about $35,791.
In the survey, Oklahoma City, Oklahoma was judged to have the lowest cost of living, with $100,000 being valued at $84,498. But, due to taxes, Oklahoma City slipped to third place.
El Paso, Corpus Christi, Lubbock, Houston, San Antonio, Fort Worth, and Arlington are seven of the top 10 cities in the United States where $100,000 will go the farthest.
New York City, Honolulu, Hawaii, San Francisco, California, Washington, D.C., Long Beach, Los Angeles, San Diego, Oakland, Boston, Massachusetts, and Seattle, Washington ranked at the bottom.
A hundred thousand dollars was less than forty thousand in the three worst cities.
SmartAsset used a paycheck calculator that factors in one’s net income after federal, state, and local taxes, as well as adjustments for the cost of living in the 76 largest U.S. cities, based on data from the Center for Community and Economic Research.