Key takeaways

• In Austin and Tampa, no state income tax meets sub-coastal rents.

• The best balance could be in Denver, with moderate rents and a predictable flat state tax.

• In New York City and San Francisco, elevated rents and high price levels compress the same salary more quickly.

• Price levels matter alongside rent: Everyday services and essentials cost more in high-RPP states, shrinking practical purchasing power.

A $100,000 salary delivers the most day-to-day headroom in Sun Belt and select Mountain West metros, where tax structures and rent levels leave more room in the budget. Coastal hubs carry higher rents and price levels — and, in some cases, city income taxes — compressing the same paycheck.

Crossing the six-figure mark can signal financial momentum. The shape of that momentum, however, depends on where the money is spent. A salary that supports a comfortable rental and healthy surplus in one metro can feel tightly allocated in another.

Housing is the headline driver, but it isn’t the only one. State and local tax policy, plus differences in overall price levels for everyday goods and services, shift the math in quiet ways. A haircut, a transit pass, a burrito — those price signals add up month after month.

Read more: The cost of living in paradise

Potential impact of higher rents and prices 

Viewed through that lens, the $100,000 conversation becomes less about a single number and more about context. In New York City and San Francisco, higher rents meet higher price levels, and — within NYC — an added city income tax.¹ In Denver, Austin, and Tampa, rent aligns closer to a quarter of gross pay, and price levels lean more favorable, helping to create space for goals that could feel out of reach elsewhere.

The Bureau of Economic Analysis (BEA) tracks regional price parities (RPP) which is a measure of how expensive everyday life is in each state and metro.²

The table aligns the same $100,000 salary across five metros and reports five signals: gross monthly income ($8,333), a current snapshot of typical rent as reported by Zillow, the share of gross that rent represents, each state’s regional price parity from BEA, and an RPP-adjusted “effective” monthly that scales $8,333 by local price levels. A higher rent share points to tighter near-term cash flow, while a higher RPP indicates costlier everyday prices — so the same salary buys less. Read together, these columns show why coastal hubs carry the heaviest load and why Sun Belt and Mountain West markets offer more breathing room — especially where state income tax is zero.

San Francisco — premium rents and price levels 

Typical monthly rent is $3,695, or 44.3% of gross income on a $100K salary.³ California’s state RPP near 112.6 is among the highest in the nation, so everyday services and discretionary spending consume more of each dollar on top of elevated rents. The upshot is a tighter month-to-month margin even at six figures.

New York City — cultural capital with a tax add-on 

Typical monthly rent is $3,596, which represents 43.2% of gross income on a $100K salary.⁴ New York State income tax applies, and NYC residents also pay a city income tax, which lowers take-home pay relative to no-income-tax states.^5,6 With a state RPP around 107.6, non-housing costs run elevated, further compressing the same salary.

Denver — balanced lifestyle and taxes 

Typical monthly rent is $2,075, or 24.9% of gross income on a $100K salary.⁷ Colorado uses a flat state income tax (standard 4.40% for 2025, subject to temporary TABOR adjustments), which keeps taxes predictable.⁸ With state RPP around 101.4, day-to-day prices are close to national levels.

Tampa — Sun Belt value with steady demand 

Typical monthly rent is $2,070, or 24.8% of gross income on a $100K salary.⁹ Florida has no state personal income tax, and a state RPP near 103.5, placing overall price levels close to national averages while rent remains below coastal markets.¹⁰

Austin — rents cooling, no state income tax 

Typical monthly rent is $1,995, or 23.9% of gross income on a $100K salary.¹¹ Texas levies no state personal income tax, and state RPP of 97.2 tilts purchasing power favorably versus higher-RPP states.¹²

Read more: What is purchasing power and how does it work

Bottom line: the $100K scoreboard 

Same salary, different outcomes. In these five metros, housing is the largest near-term lever, while tax structure and regional price levels quietly tilt everyday spending. New York City and San Francisco combine elevated rents with higher price levels; Denver balances moderate rents with a predictable flat tax; Austin and Tampa pair sub-coastal rents with no state income tax.

This is not a verdict on any city — it’s a snapshot of purchasing power at one moment in time. Tradeoffs extend beyond rent and taxes to include career networks, commute patterns, and quality-of-life preferences, and rankings can shift as markets and policies move.

* RPP-adjusted “effective” monthly scales gross monthly income ($8,333) by state regional price parity (RPP) to approximate local purchasing power: $8,333 × (100 ÷ state RPP). RPP is a price-level index (U.S.=100); higher RPP implies higher prices and thus a lower “effective” monthly. Uses 2023 state RPP (BEA) and rounds to the nearest dollar; shown for comparability only — not a measure of take-home pay.