$100K Paycheck Reality Check: The US Cities Where Your Money Actually Lasts

A $100,000 salary buys you a very different life depending on your postcode, and the gap is wider than most earners realise.

A ConsumerAffairs study of America's 100 largest cities found that a six-figure income translates into $89,864 of adjusted purchasing power in Laredo, Texas — but just $62,371 in San Francisco and Oakland, California. That is a difference of more than $27,000 for the same gross salary.

The findings land at a moment when nearly two-thirds of six-figure earners describe their income as 'just enough for survival mode, not a sign of wealth,' according to a Harris Poll survey cited by the researchers.

'Gross salary is what most people focus on, but what really matters is purchasing power,' said Sebastian Fidilio, a New York-based accountant and founder of sebCFO. 'It's not what you make — it's what you keep that matters.'

How the Study Worked

ConsumerAffairs analysed federal, state and local tax rates across the 100 largest US cities to calculate the take-home pay from a $100,000 salary. Researchers then adjusted those figures using regional cost parity data, which reflects local variations in housing, goods and services.

The result is an apples-to-apples comparison of what $100,000 actually buys in each location, expressed in national-average prices.

For context, US median household income stood at $83,730 in 2024, according to Census Bureau data — up marginally from $82,690 in 2023. Meanwhile, 29% of lower-income households were living pay cheque to pay cheque in 2025, compared with 27.1% two years earlier, according to the Bank of America Institute.

The squeeze is real, even for households earning well above the median.

Top 10 Cities Where $100,000 Goes Furthest

Texas dominates the top of the table. Six of the 10 best cities for stretching a six-figure salary are in the Lone Star State, helped by zero state income tax and lower housing costs due to less restrictive building regulations.

In all 10 cities, a $100,000 salary feels like more than $80,000 at the national average.

Laredo tops the rankings because residents pay no state or local income tax, leaving the largest share of gross income intact.

1. Laredo, Texas
2. El Paso, Texas
3. Lubbock, Texas
4. Corpus Christi, Texas
5. Memphis, Tennessee
6. San Antonio, Texas
7. New Orleans, Louisiana
8. Tulsa, Oklahoma
9. Wichita, Kansas
10. Fort Wayne, Indiana

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:

1. San Francisco, California
2. Oakland, California
3. New York City, New York
4. Irvine, California
5. Anaheim, California
6. Santa Ana, California
7. Long Beach, California
8. Los Angeles, California
9. Honolulu, Hawaii
10. 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.

What It Means for Workers Weighing a Move

The study is a reminder that a job offer is not just a number on a contract. For professionals considering relocation, the difference between a city where $100,000 buys $90,000 of life and one where it buys $62,000 is not a rounding error. It is the difference between building savings and running down the clock to the next pay cheque.

ConsumerAffairs noted that in some cities, a six-figure salary can be 'just enough for survival mode.' For workers in the market for a new role, understanding local taxes and living costs may matter as much as negotiating the headline figure.