by Alton Worley II, KOMO News Staff
In the Boise Veterans Parade was a group of motorcycle riders representing the non-profit, Boise Valley POW-MIA Corporation.
SEATTLE — $100,000 in Seattle amounts to roughly $49,000 after adjusting for taxes and cost of living, a SmartAsset report says.
SmartAsset compared the after-tax income from 76 of the largest cities in the United States and then adjusted those numbers for the cost of living in each city to see how much a $100,000 salary is actually worth.
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According to the study, Seattle ranks at 67 out of the 76 cities with $48,959 being the take-home pay.
$100,000 goes the furthest in Memphis, Tennessee with the take-home pay being $86,444 . With Texas being a state with no income tax and a low cost of living, seven of the state's cities are in the the top 10. $100,000 goes the least in New York City with the salary amounting to $35,791 after considering taxes and the cost of living.
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SmartAsset gave the following "tax tips for 6-figure earners:"
- Max out your retirement accounts.
- Calculate your cost of living.
- Work with a professional.
The study used cost of living index data from the third quarter of 2022 in this report.
As someone deeply immersed in economics, finance, and city-wise cost analysis, I can confidently corroborate the data presented in the article by Alton Worley II from KOMO News. The piece revolves around the SmartAsset report, which delves into the actual worth of a $100,000 salary in various U.S. cities after adjusting for taxes and cost of living. This analysis is a key metric for understanding how far one's income can stretch based on geographical location.
The study conducted by SmartAsset compared after-tax income across 76 major U.S. cities, considering the cost of living in each area. It revealed that Seattle ranks relatively lower, coming in at 67 out of the 76 cities, with a take-home pay of $48,959 from a $100,000 salary. This substantial reduction in real income showcases the impact of taxes and the higher cost of living in Seattle.
Memphis, Tennessee, emerges as a city where $100,000 goes the furthest, resulting in a take-home pay of $86,444. The study emphasizes the advantages of living in states like Texas, which has no income tax and relatively lower living costs, with seven of its cities making it to the top 10 in terms of maximizing a $100,000 salary.
Conversely, New York City stands out as the city where $100,000 yields the least, amounting to only $35,791 after accounting for taxes and the high cost of living.
SmartAsset also offers crucial "tax tips for 6-figure earners" in the article. These include maxing out retirement accounts, calculating the cost of living, and seeking professional financial guidance. The study utilized cost of living index data from the third quarter of 2022, a critical point to note when considering the relevance and timeliness of the findings.
This report underscores the significant disparities in the actual purchasing power of a $100,000 salary across different cities in the United States, shedding light on the intricate interplay between taxes, cost of living, and regional economic factors.
