A depressing new study has found a $100,000 salary after taxes translates to less than $66,000 a year in major California cities due to high taxes and thestaggering cost of living.
Research byConsumer Affairsfound a six-figure income in the Golden State “no longer guarantees that you can live comfortably” in eight metropolises.
The list includes two Bay Area cities and five Southern California ones that tied for 4th place when the tax rates of America’s 100 largest cities were analyzed.
“In all of those cities, a $100,000 salary translates to less than $66,000 in adjusted post-tax purchasing power — more than $20,000 less than in cities where purchasing power is highest,” ConsumerAffairs researchers said.
In some places, the research found that a hundred grand a year can be “just enough for survival mode.”
“Even if you do arrive at that $100,000 salary, it doesn’t all make it to your net paycheck,” researchers said.
“Take-home pay varies dramatically by location, in part due to the wide variance in state and local tax rates across the United States.”
Researchers added, “But taxes are only part of the equation; housing and everyday costs can erode take-home pay just as quickly.”
Not coincidentally, many of these cities also happen to also be on theConsumer Affairs’ listof mostexpensive places to livein America.
“In some cities, high costs of living and taxes can shrink a six-figure salary to feel more like peanuts. Combined, these costs can leave a stark contrast between a resident’s gross pay and their actual purchasing power,” researchers said.
Source: California Post – Breaking California News, Photos & Videos
