Many people daydream about making six figures in their career before they enter the workforce. But the rising cost of living certainly throws a wrench in the works. Luckily for Texans, a six-figure salary still goes pretty far in the state.
In a new report from SmartAsset, a $100,000 salary in Austin is worth an average of $73,777 after taxes and adjusted for the cost of living. The financial technology company analyzed income in 76 United States cities, and adjusted them for the cost of living in each location. Austin ranked No. 24 on the list.
Seven Texan cities appear in the study’s top 10 where a six-figure salary goes the furthest. Houston ranked No. 6 as the fourth Texas city on the list, after El Paso (No. 2), Corpus Christi (No. 4), and Lubbock (No. 5). A Houstonian's six-figure salary is reduced to $74,515 after taxes, but is technically worth $81,350 when adjusted for the cost of living.
In a three-way tie with San Antonio for No. 7, a person who makes $100,000 a year in Fort Worth and Arlington takes home about $74,515 after taxes. When adjusted for the cost of living, which is seven percent lower than the national average, that money is worth $80,124.
Dallas appears at No. 34 on the list, with the average six-figure earner bringing home $72,345 after taxes. That salary shrinks in the northern Dallas suburb of Plano (No. 59), where the worker brings home $59,422.
The place where $100,000 goes the furthest is Memphis, Tennessee. Much like Texas, Tennessee doesn’t have a state income tax and has a lower cost of living in comparison to the national average.
After Memphis is El Paso, followed by Oklahoma City (No. 3), then Corpus Christi, Lubbock, and Houston. After the Texan three-way tie for No. 7, St. Louis, Missouri rounds out the top 10.
The 10 total Texas cities that appear in SmartAsset’s study include:
- No. 2 – El Paso
- No. 4 – Corpus Christi
- No. 5 – Lubbock
- No. 6 – Houston
- No. 7 – Fort Worth, Arlington, San Antonio (tied)
- No. 24 – Austin
- No. 34 – Dallas
- No. 59 – Plano
The report and its methodology can be found on SmartAsset’s website.