A new study has revealed exactly how far a $100K salary actually goes in Los Angeles.
This past February, consumer review site ConsumerAffairs released a study analyzing the true take-home pay on a $100K salary in 100 cities around the United States.
Unsurprisingly, some of the biggest California cities were at the very bottom of the list. Here’s a closer look…
What does a $100K salary actually get you in L.A.?
Of the 100 largest U.S. cities analyzed, Los Angeles ranked at #94, with a $63,829 adjusted post-tax salary on 100K. It tied with Long Beach, Santa, and Anaheim.
The only U.S. cities with a lower ranking are New York at $62,674, and San Francisco and Oakland, which tied for last place with $62,371.
ConsumerAffairs calculated the adjusted post-tax salary by applying federal income tax, state and local taxes, and payroll taxes, and then applying each city’s regional price parity (RPP) index, which roughly reflects the cost of living.
The Los Angeles-Long Beach-Anaheim metro area has a lower RPP compared to San Francisco and Oakland, which saves Angelenos $1,458.
Where does a $100K salary stretch the furthest in the U.S.?
In other parts of the United States, the take-home value on a $100K salary goes much further.
#1 on the list is Laredo, Texas, whose adjusted post-tax salary came to $89,864. In fact, Texas cities dominate the rankings, with El Paso, Lubbock, and Corpus Christi rounding out the top 4.
Other cities with the highest rankings include Memphis, TN, at #5; New Orleans, LA, at #7, and Tulsa, OK, at #8. They all have salaries calculated over $83K.
In California, the city with the highest adjusted post-tax salary is Bakersfield, ranking at #70 with $72,136.
🌐 Learn more: You can read the full ConsumerAffairs study here.