SmartAsset study reveals top 10 U.S. Cities for maximizing a six-figure income

In the quest for financial well-being, the value of a $100000 salary can vary greatly across U.S cities with Texas cities dominating the list of locations where your income stretches the furthest. A recent study by financial technology company SmartAsset has shed light on where a six-figure income offers the most bang for your buck, considering factors such as taxes, housing, and living costs.

El Paso, Texas, claims the top spot, where $100,000 translates to about $88,840 in purchasing power after accounting for federal, state, local taxes, and basic living expenses. This city, nestled along the U.S.-Mexico border, boasts a cost of living approximately 12% lower than the national average, making it an attractive option for individuals and families seeking financial comfort without sacrificing quality of life.

Despite its affordability, El Paso faces challenges, with nearly 19% of its population living in poverty. However, its lower cost of living, especially in terms of housing, continues to draw attention. The median household income in El Paso stands at $55,710, with median gross rent at $976, highlighting the city’s affordability relative to other parts of the country.

The presence of five Texas cities in the SmartAsset ranking underscores the Lone Star State’s appeal, partly due to the absence of state income taxes. However, it’s worth noting that Texas residents still contend with some of the nation’s highest property taxes.

Young Americans, particularly those from Gen Z, are increasingly recognizing the financial advantages of relocating to Texas. According to Zillow’s analysis of migration data, Texas was the most popular destination for Gen Zers in 2022.

Here’s a closer look at the top 10 U.S. cities where a $100,000 salary goes the furthest:

1. El Paso, Texas – $88,840 in purchasing power
2. Oklahoma City, Oklahoma – $87,585
3. Memphis, Tennessee – $86,960
4. Corpus Christi, Texas – $86,383
5. San Antonio, Texas – $85,625
6. Lubbock, Texas – $85,065
7. Tulsa, Oklahoma – $84,507
8. Jacksonville, Florida – $83,878
9. Houston, Texas – $82,986
10. St. Louis, Missouri – $82,614

When considering a move or evaluating your current living situation, it’s crucial to look beyond the numbers. Factors such as job opportunities, recreational activities, and proximity to loved ones can significantly influence your decision. Ultimately, finding a balance between financial benefits and personal preferences will lead to the most satisfying outcome.

For those looking to diversify income streams beyond their primary job, exploring passive income opportunities can further enhance financial stability and growth. Engaging in activities you enjoy, coupled with strategic financial planning, can pave the way for a prosperous and fulfilling life, regardless of your geographic location.