In the United States, a yearly salary of $100,000 may sound like a substantial income. However, whether this salary qualifies as “high income” depends on where you live. Disparities in taxes, housing costs, food prices, and other expenses vary greatly among states, cities, and even different districts within cities like New York. These differences can significantly diminish the purchasing power of a $100,000 income, potentially leading you to be classified as a “low-income earner.”
For instance, in Manhattan, New York, a $100,000 income translates to the purchasing power of only $30,000 after deductions for taxes and necessary expenses. Does this come as a surprise? This calculation was made by the financial information website SmartAsset after subtracting various taxes and essential expenses from a $100,000 annual salary.
Earning $100,000 puts taxpayers in the 22% federal individual income tax bracket, in addition to having to pay U.S. Social Security and Medicare taxes (FICA). State and local income taxes may further reduce income. Furthermore, the cost of living varies significantly across the country, affecting the purchasing power of remaining cash after necessary expenses.
SmartAsset analyzed the decline in purchasing power of a $100,000 salary compared to the same period last year for 72 major cities in the U.S. The study considered each administrative district in New York as a separate city, leading Manhattan, Brooklyn, and Queens to rank in the top five on the list. Below are the eight cities where the purchasing power of a $100,000 income has declined the most year over year:
– Purchasing power of $100,000 in 2025: $30,362
– Purchasing power of $100,000 in 2024: $30,914
– Year-over-year change: -1.8%
– Purchasing power of $100,000 in 2025: $66,668
– Purchasing power of $100,000 in 2024: $67,926
– Year-over-year change: -1.9%
– Purchasing power of $100,000 in 2025: $79,543
– Purchasing power of $100,000 in 2024: $81,429
– Year-over-year change: -2.3%
– Percentage increase in purchasing power of $100,000: -2.7%
– Purchasing power of $100,000 in 2025: $64,991
– Purchasing power of $100,000 in 2024: $66,801
– Year-over-year change: -2.7%
– Purchasing power of $100,000 in 2025: $77,647
– Purchasing power of $100,000 in 2024: $80,089
– Year-over-year change: -3.0%
– Purchasing power of $100,000 in 2025: $71,688
– Purchasing power of $100,000 in 2024: $73,984
– Year-over-year change: -3.1%
– Purchasing power of $100,000 in 2025: $71,371
– Purchasing power of $100,000 in 2024: $74,436
– Year-over-year change: -4.1%
– Purchasing power of $100,000 in 2025: $46,708
– Purchasing power of $100,000 in 2024: $49,978
– Year-over-year change: -6.5%