Make that paper
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 Texas is worth an average of $77,885 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.
Seven Texan cities appear in the study’s top 10 where a six-figure salary goes the furthest. San Antonio ranked No. 7 in a three-way tie with Fort Worth and Arlington. A person who makes $100,000 a year in all the three cities 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.
Houston ranked just before the Alamo City at 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.
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 – San Antonio, Fort Worth, Arlington (tied)
- No. 24 – Austin
- No. 34 – Dallas
- No. 59 – Plano
The report and its methodology can be found on SmartAsset’s website.