People living in New York, San Francisco, and Honolulu need to earn $300,000 to feel like they're making $100,000 as inflation bites, survey says (2024)

FAQs

People living in New York, San Francisco, and Honolulu need to earn $300,000 to feel like they're making $100,000 as inflation bites, survey says? ›

Rising living costs and taxes make life more expensive, especially for Americans who live in more costly parts of the country. For Honolulu, New York City, and San Francisco workers, $300,000 feels like the new $100,000, thanks to inflation.

San Franciscans need to earn slightly more than $300,000 pre-tax to take home $100,000 of purchasing power. Just over the bridge from San Francisco lies Oakland, California, where earners need $245,600 in income before taxes and after adjusting for cost of living to be left with $100,000.

The Income Breakdown: How Many Americans Earn 6 Figures

According to the U.S. Census Bureau, only about 6% of Americans earn an annual salary of $100,000 or more. That amounts to around 8 million households crossing into 6-figure territory.

San Francisco workers need to earn more than $300,000

Living expenses cost 82.8% more than the national average, making it a pricey place to live. To earn $100,000 of purchasing power, San Francisco residents need to make just over $300,000 in pre-tax income.

Based on that figure, an annual income of $500,000 or more would make you rich. The Economic Policy Institute uses a different baseline to determine who constitutes the top 1% and the top 5%. For 2021, you're in the top 1% if you earn $819,324 or more each year. The top 5% of income earners make $335,891 per year.

Americans say they would need to earn $483,000, on average, to feel rich or achieve financial freedom, according to a recent Bankrate survey. That's over eight times the national median income of about $57,200, according to Labor Department data.

For most individuals and small families, the answer to “Is $100,000 a good salary?” is a resounding “yes.” Cost of living and family size can affect how far $100,000 will go, but generally speaking, you can live comfortably on $100,000 a year. Are you hoping to make the most of your salary?

In the United States, the concept of being rich is often a subject of discussion, curiosity and, sometimes, aspiration. Charles Schwab's 2023 Modern Wealth Survey provides insights into this topic, revealing that the average American equates being wealthy with a net worth of approximately $2.2 million.

As of my last update in January 2022, approximately 1.8% of American households had an income exceeding $300,000 annually. However, this figure may vary slightly over time due to economic changes and shifts in income distribution.

A $100,000 salary may be considered middle-income in many parts of the U.S., but it's no longer a ticket to the middle class.

Where a $100,000 salary goes the furthest? ›

Although $300,000 is a lot compared to the median household income in the United States of ~$76,000 in 2023, it's not an outrageous sum of money. Once you pay taxes and look at the realistic income statement I've put together for this article you'll see the income is reasonable.