These 5 US cities can help you stretch a $100K income farthest, study reveals. Plus how you can save money and live better — wherever you are

A study by Professpost found that the value of a $100,000 salary very much depends on where you live [1]. The study compared 30 U.S. cities by modeling after-tax income and adjusting for local prices.

The verdict? “In 2025, $100,000 can provide comfort or barely cover the basics, depending on where you live.”

Here’s where you’ll get the most bang for your buck.

5 states where you can stretch your salary

The study’s calculations took into account the standard federal income tax deduction ($15,750 for single filers), payroll taxes including Social Security and Medicare, state and local income taxes, sales taxes and a cost of living adjustment, making “a dollar in Houston directly comparable to a dollar in New York.”

Southern and Midwestern metros “dominate the top of the list,” according to the study. Memphis, TN, is the city where your dollar stretches the furthest, followed by four Texan cities: El Paso, San Antonio, Fort Worth and Houston.

In all 30 cities, federal income tax and payroll taxes were the same. But Tennessee and Texas citizens don’t have to pay state or local income taxes, which makes a big difference. Compare that to Portland, where state taxes add up to $8,456.

In Texas, the cost of living is 5% lower than the national average, according to RentCafe [2]. Housing is 16% lower and groceries are 3% lower, though utilities are 1% higher.

Perhaps not surprisingly, New York City, San Francisco and Los Angeles were all in the bottom five of the Professpost study. In New York City, a combination of high taxes and steep living costs leaves a “$100k salary feeling closer to $60k nationally” [1].

The study found that for those who prioritize “lifestyle and financial breathing room,” then Southern and Midwestern cities are among the best choices. For those looking for career opportunities in coastal hubs, “the trade-off is clear: a six-figure salary doesn’t stretch as far as it used to.”

How to stretch your savings even further

Living in one of these states could make it easier to afford a comfortable lifestyle, but it’s not always possible to just pick up and move to another city (and there are costs to moving, too).

And it won’t help you retire any earlier if you have poor spending and saving habits.

No matter where you live, there are actions you can take to make the most of your income (considering that the real median household income was $80,610 in 2023, according to the U.S. Census Bureau from 2023, the latest available) [3].

Many financial experts suggest starting with a budget, taking into account your total household income and expenses, including housing (insurance, utilities and property taxes), food, transportation, health insurance and personal costs such as child care. It should also leave room for savings and investments.

There are a few different budgeting frameworks to choose from, like the 70/20/10 rule in which you set aside 70% of after-tax income for expenses, 20% for savings and investments and 10% for debt payments and/or donations. A variation on that framework is the 50/30/20 rule needs, wants and savings/debt repayment).

Several budgeting apps or online tools are available to help, or you may want to work directly with a financial planner.

Build an emergency fund if you don’t already have one (about three to six months of living expenses) and start paying down high-interest debt, such as payday loans and credit card debt.

Debt repayment methods include the snowball method (eliminating debts from smallest to largest, making minimum payments on all except the smallest one until it’s paid off) and the avalanche method (paying off the debt with the highest interest rate first, then repeat).

If you’re struggling, you may be able to negotiate a settlement, repayment plan or debt consolidation plan with your lenders.

From there, your extra money can be directed toward savings and investments. Take advantage of any employer-sponsored retirement savings plans, such as a 401(k), especially if your employer matches a percentage of your contributions.

Also consider tax-advantaged accounts.

A tax-deferred account means you don’t pay taxes on your contributions, but you’ll pay taxes on future withdrawals (typically when you have a smaller income in retirement). Tax-deferred accounts include traditional individual retirement accounts (IRAs) and 401(k)s.

A tax-exempt account means you make contributions with after-tax dollars, so withdrawals in retirement aren’t taxed. These accounts include Roth IRAs and Roth 401(k)s.

In 2025, the 401(k) annual contribution limit is $23,500 (for employee contributions) and $70,000 (for combined employee/employer contributions). If you’re 50-59 or 64+, you can make a catch-up contribution of up to $7,500 and, beginning this year, those 60-63 can contribute an extra $11,250.