In some cities in the United States, earning $300,000 per year is still considered middle class. In fact, many $100,000-per-year earners don’t feel rich. In some cities in the United States, you probably won’t be able to afford a home if you make $75,000 or less. Only 7% of American households make $250,000 or more.
However, some cities will provide the most value for their money to those with high incomes, while others will provide significantly less.
The overall economy, taxes, and cost of living of a city all influence the real purchasing power of a salary of $250,000. In Memphis, Tennessee, a $250,000 home can be worth as much as $203,664 but only $83,000 in New York City.
That’s according to a SmartAsset report that looked into the areas where high earners suffer the most from rising living costs and taxes. The study makes adjustments for the cost of living when comparing after-tax income in 76 of the largest cities in the United States.
SmartAsset’s paycheck calculator, which takes into account federal, state, and local taxes to determine take-home pay, was used to compile the data. Housing, food, utilities, transportation, and other goods and services are all included in the cost of living.
In the meantime, the following is a list of the seven cities in which a $250,000 annual salary has the lowest purchasing power and the highest actual value.
New York: $82,421
Honolulu: $82,672
San Francisco: $82,776
Los Angeles: $101,635
Long Beach, California: $101,635
Washington, D.C.: $101,865
San Diego: $105,151
It should come as no surprise that cities like New York and Washington, D.C., where living costs are high, are where $250,000 goes the furthest. According to RentHop data, the average monthly rent for a studio apartment in New York is $3,500.
Wealthy People Live Longer Than The Poor – Research Reveals
Again, as per RentHop’s data, the average monthly rent for a studio apartment in Washington, D.C. is also high, at just over $2,300. Based on monthly household spending, the nation’s capital came in third among major U.S. cities last year. No. 1 was New York. 5.
Due in large part to the state’s high income tax, several cities in California also make the cut for places where $250,000 has the lowest purchasing power.
According to SmartAsset, residents in San Francisco, for instance, income approximately six percentage points more in taxes for salaries of $250,000 compared to salaries of $100,000.
The study also found that San Francisco’s cost of living is 828.8% higher than the national average. Essentially, Long Beach, California, experts are charged at a pace of 38%, with a typical cost for most everyday items 52.5% higher than the national average.
credit: CNBC
