Here's how far a $100,000 salary actually goes in Los Angeles, per SmartAsset
Los Angeles is the 23rd most expensive city in the US for someone earning a $100,000 salary.
Angelenos will get less for their money than their American counterparts as the cost of living in all cities has risen.
SmartAsset is a New York based financial technology firm that recently examined how much $100,000 could buy in 76 major cities across the country. SmartAsset calculated the cost of living in each city by applying taxes to the $100,000 annual salary.
Los Angeles was ranked fifth from the bottom on this list. The adjusted take-home salary for Los Angeles is $44,623.
Bakersfield was ranked No. 1 among the California cities that were included in this analysis. Sacramento came in at No. 62 ($57.669). Stockton was next ($55.962), Oakland followed ($46.198), San Diego (46.167), Long Beach, tied with L.A. ($44.623) and San Francisco (36.445).
Memphis, Tennessee, topped the list of SmartAsset. Memphis' $100,000 salary was worth $86,444 after subtracting taxes and cost of living. New York City came in last with a $100,000 wage valued at only $35,791.
SmartAsset's own payroll calculator was used to calculate federal, state, and local taxes on the $100,000 salary. SmartAsset used data on cost of living from the Council for Community and Economic Research for third quarter 2022. This includes housing, groceries and utilities, as well as other costs.
SmartAsset released a separate study last month that compared the salary needed to live comfortably across the 25 largest metros in the United States. The study found that to live comfortably within the Los Angeles region, a salary after taxes of $76,710 would be required.
Los Angeles Metro required the sixth highest salary to live comfortably based on the rule 50/30/20 -- 50% of income after tax is allocated to living expenses, 30% for discretionary spending and 20% to savings or debt repayment.
St. Louis was rated as the most affordable metro area to live in for the second year running. To live comfortably, you need $57,446 (after taxes)
SmartAsset compiled the list using data collected from the MIT Living Wage Calculator for 2022 to determine the cost of basic living in each metro region. This online calculator includes essential costs such as housing and food, transportation, and medical care. SmartAsset calculated the amount of take-home pay needed to spend 30% of income on wants, and 20% for savings or debt repayment.