Dallas

A recent analysis by GOBankingRates has shown significant variations in how far a $100,000 salary stretches across major Texas cities, highlighting these urban areas’ advantages due to lower living costs and no state income tax. The findings reveal that while a $100,000 income is generally considered substantial in many regions, its purchasing power can differ dramatically depending on where one resides in the United States.

Key Findings on Texas Cities

The study presented an overview of Texas’ seven largest cities, where residents earning $100,000 annually are likely to benefit from considerably higher residual incomes after accounting for living expenses. Here are some of the noteworthy cities analyzed:

Comparative Advantage

As the analysis suggests, Texas cities offer significant cost advantages over other metropolitan areas like New York City, where a $100,000 salary may barely cover living expenses. Dallas has a cost of living that is slightly above the national average, which results in taking home about $32,374 after essential expenses. Arlington closely follows with a take-home amount of $32,417, while Fort Worth offers $32,789 to its residents after tax deductions.

Austin and Houston

Austin’s costs sit approximately 3% lower than the national average, giving individuals a retainable income of about $33,225 annually. Houston’s appeal comes with its housing costs being around 20% lower than the national average, allowing residents to keep a larger portion of their salary. Meanwhile, El Paso exhibits higher than average transportation costs, yet its 30% cheaper housing leads to total annual expenditures that leave $35,148 for discretionary spending. San Antonio emerges as a standout, where residents enjoy over $37,000 in residual income after covering living expenses and taxes.

Methodology and Conclusion

The study’s methodology involved sourcing data from the U.S. Census 2023 American Community Survey and various cost indices for groceries, healthcare, utilities, and transportation. The results point out the advantages of residing in Texas, especially due to its absence of state income tax and relatively lower living costs compared to many other large U.S. cities.