Just seven percent of American households make $250,000 a year — but depending on where they live, even these high earners aren't immune to effects of the cost of living crisis.
To find out how much a $250,000 salary is actually worth across the US, SmartAsset compared the after-tax income in 76 of country's biggest cities, and then adjusted these figures according to reflect each city's cost of living.
Key Findings:
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According to the study, an annual income of $250,000 goes furthest in Memphis, Tennessee. With no state income tax and a tax rate of just 29.77 percent, earners on this salary can enjoy an after-tax income of around $175,558. What's more, a $250,000 salary in Memphis is still worth roughly $203,663 after factoring in the cost of living — the highest value of any of the cities analyzed.
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A high earners' salary has the lowest real value in Honolulu, New York City and San Francisco. In the latter two cities, $250,000 is worth less than $83,000 once taxes and the cost of living are considered.
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Taxpayers earning $250,000 a year pay an average of 34 percent in taxes, while people on a salary of $100,000 across the study's 76 cities are taxed at an average rate of just 29.33 percent.
Via SmartAsset.
[Image credit: Joshua J. Cotten]
