Re:Redditors earning $100k+ a year, what are your secrets to...
by rayiner on Friday February 25, 2011 @03:49PM
(#2263734)
Cost of living calculators are probably not that misleading for people in the $100k range.
Your after-tax income in Houston on $100k salary is $73k. Your after-tax income in San Fran on $186k salary is $111k.
So taxes alone reduce the initial $86k difference to $38k.
A similarly nice apartment in San Fran will easily run you $2k/mo more than in Houston, reducing the difference to $14k.
The difference will be further reduced by other location dependent expenses: property and sales taxes, food, insurance, gas, entertainment, etc. A Big Mac in New York costs 50% more than a Big Mac in Miami.* Movie tickets in New York are about $12.50 versus $7.50 nationwide. A drink at a bar is about double in New York versus in Atlanta (where I used to live).
Your after-tax income in Houston on $100k salary is $73k. Your after-tax income in San Fran on $186k salary is $111k.
So taxes alone reduce the initial $86k difference to $38k.
A similarly nice apartment in San Fran will easily run you $2k/mo more than in Houston, reducing the difference to $14k.
The difference will be further reduced by other location dependent expenses: property and sales taxes, food, insurance, gas, entertainment, etc. A Big Mac in New York costs 50% more than a Big Mac in Miami.* Movie tickets in New York are about $12.50 versus $7.50 nationwide. A drink at a bar is about double in New York versus in Atlanta (where I used to live).
) http://research.stlouisfed.org/publications/review/03/11/pak..., p. 24.
*) http://jabcatmovies.com/2010/01/movie-ticket-prices-new-york...