Will you consider moving to a low cost of living cities assuming TC will be lower but you get better purchasing power? https://www.bloomberg.com/news/articles/2023-04-15/making-300-000-a-year-feels-more-like-100-000-salary-in-these-three-cities? Edit: here is the original article and analysis from smartasset https://smartasset.com/data-studies/new-100k-how-taxes-costs-affect-us-cities-2023 Key Findings >>Three cities require $300,000+ to bring home the “new” $100k. Residents of Honolulu, New York City and San Francisco who earn this amount are taxed roughly 40.5% or higher and have a cost of living more than 82% above the national average. >>It’s easiest to “make it” in Texas. Salaries in El Paso, Corpus Christi, Lubbock, Houston, San Antonio, Fort Worth and Arlington can be as low as $119,300 while feeling like a true $100,000. Texans at this income level hold onto an average of 5.7 percentage points more of their annual salaries compared to states that charge income taxes, while the cost of living across Texas is generally lower than the national average. >>California cities require the highest gross incomes of any state. San Francisco, Oakland, Los Angeles, Long Beach and San Diego all require exceptionally high salaries to feel like $100,000. Those in the Bay Area, for example, require at least $147,000 in salary for middle-class comfort. These Golden State cities command particularly high tax rates and cost of living premiums. >>Despite Miami’s high cost of living, low taxes make it more affordable than big cities like Chicago, Sacramento and Baltimore. In general, states with no state income taxes have an edge when it comes to overall purchasing power. States that don’t take a cut of residents’ income taxes include Alaska, Florida, Nevada, New Hampshire, South Dakota, Tennessee, Texas, Washington and Wyoming. #costofliving #purchasepower #hcol #lcol #tech
As usual, lazy journalism that doesn't understand how to use cost of living.
it depends on cities. if nyc sure id take a tax hit and enjoy my young life. bay? hell f no
What year are we comparing
300k in 2023 vs 100k in 1995
I make 135k TC in LCOL (Indiana). I have a 4 bed house, great yard, and live in one of the best school districts in the state. I grew up in California and lived 7 years in the DC metro. Never going back! Life is so much better out here.
Hamilton county actually has a good amount of diversity in certain places. But yeah mostly white throughout the state.
I have a 4/4 house in NYC in a good school district, even before I worked for Google. Pool/back yard/forest/deer and everything, don't need to goto to a middle of nowhere. now I got a couple of condos in FL, life is good.
Sure it feels like that but you can also save about 3 times as much when you make 3 times as much in HCOL. It's not gonna take as long to retire and move to LCOL.
What about Seattle?
The fourth option is living someplace with high wages and expensive housing, but making do with less. I spent the same money on housing in Boulder, Seattle, and the SF Bay Area from 2000-2017.
Very biased and half baked post. What about savings rate? People in LCOL will work all their life and retire. There is no FIRE. No chance of finding a higher paying job easily. HCOL gives you a chance to grow your salary 5x over 10 years. Rentals are not very different. If you buy then it’s a major portion of your salary. Again, you make that back and more if you hold the house long enough. So it’s not like a consumable cost.
True. $300K is the new 6 figure level in the big tech hubs
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And companies want us to RTO to those pricey places. Hell no. I will change jobs or take paycut but will no RTO to hell