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Although Americans define being “rich” in many ways, one way to look at it is having enough income to cover necessary expenses — groceries, shelter, utilities, healthcare and transportation — and still having plenty of money left over. Using this as the barometer, GOBankingRates determined the U.S. cities where it’s easiest to get rich by analyzing the 50 most populous cities, looking at the median household income after taxes minus living costs, and finding the places where median earners have a healthy amount of funds left over to do with whatever they please. In the top 10 cities where it’s easiest to get rich, the median household will have over $18,000 each year after covering basic expenses.
10. Nashville, Tennessee
- Median household income: $65,565
- Take-home pay after taxes: $53,864
- Annual cost of necessities: $34,924
- Difference between take-home pay and cost of necessities: $18,940
9. Colorado Springs, Colorado
- Median household income: $71,957
- Take-home pay after taxes: $55,804
- Annual cost of necessities: $36,686
- Difference between take-home pay and cost of necessities: $19,118
8. Charlotte, North Carolina
- Median household income: $68,367
- Take-home pay after taxes: $53,194
- Annual cost of necessities: $33,772
- Difference between take-home pay and cost of necessities: $19,422
7. Austin, Texas
- Median household income: $78,965
- Take-home pay after taxes: $63,291
- Annual cost of necessities: $43,833
- Difference between take-home pay and cost of necessities: $19,458
6. Arlington, Texas
- Median household income: $65,481
- Take-home pay after taxes: $53,806
- Annual cost of necessities: $34,145
- Difference between take-home pay and cost of necessities: $19,661
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5. Omaha, Nebraska
- Median household income: $65,359
- Take-home pay after taxes: $50,859
- Annual cost of necessities: $30,419
- Difference between take-home pay and cost of necessities: $20,440
4. Raleigh, North Carolina
- Median household income: $72,996
- Take-home pay after taxes: $56,230
- Annual cost of necessities: $34,687
- Difference between take-home pay and cost of necessities: $21,543
3. Forth Worth, Texas
- Median household income: $67,927
- Take-home pay after taxes: $55,527
- Annual cost of necessities: $33,942
- Difference between take-home pay and cost of necessities: $21,585
2. Seattle
- Median household income: $105,391
- Take-home pay after taxes: $81,882
- Annual cost of necessities: $56,841
- Difference between take-home pay and cost of necessities: $25,041
1. Virginia Beach, Virginia
- Median household income: $81,810
- Take-home pay after taxes: $61,306
- Annual cost of necessities: $34,992
- Difference between take-home pay and cost of necessities: $26,314
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Methodology: GOBankingRates looked at the top 50 most populous cities in the U.S. and first found each city’s (1) median household income. GOBankingRates then, using its in-house income tax calculator, found the amount of federal, state and FICA income tax a single person would pay in each city, leaving (2) a take-home pay (post-tax) for each city. From there, GOBankingRates found the (3) annual cost of necessities (groceries, shelter, utilities, healthcare and transportation) for a single person by first finding the national average in the Bureau of Labor Statistics’ 2021 Consumer Expenditure Survey and then factoring that out by the cost of living index from Sperling’s Best Places. GOBankingRates then found (4) the difference in take-home pay and the annual cost of necessities, with the largest positive difference being best. All data was collected and is up-to-date as of March 7, 2023.
I'm well-versed in financial analysis and economic trends, often utilizing methodologies that blend data from various sources to draw comprehensive conclusions. For instance, I frequently leverage income tax calculators and cost of living indices to evaluate the financial health of different regions.
In the GOBankingRates article from March 19, 2023, the analysis scrutinizes the top 50 most populous cities in the U.S., evaluating median household incomes, tax implications, and annual living expenses. This assessment employs an income tax calculator to determine post-tax incomes and factors in essential costs like groceries, shelter, utilities, healthcare, and transportation.
The cities listed demonstrate the surplus income after covering necessary expenses. Take, for example, Seattle, where the median household income of $105,391 significantly exceeds the annual cost of necessities at $56,841, resulting in a surplus of $25,041.
This analysis adopts a methodology that derives the difference between take-home pay and the annual cost of necessities, emphasizing cities where residents have a larger surplus income. The goal is to identify locations where median earners have substantial funds remaining after covering essential expenses, signifying greater potential for building wealth.
This kind of analysis is valuable for individuals seeking locations where their income can provide a substantial surplus after meeting essential needs, thus potentially enabling them to save, invest, or utilize their excess income more freely. The data provides insight into the financial health of different cities, guiding individuals in making informed decisions about where to reside or invest based on their financial goals.
