For many, reaching a six-figure salary is a watershed moment, yet it’s an illusory milestone: In reality, your take-home pay is much lower after taxes and factoring in the sky-high cost of living in many major cities. That’s especially true with slowing wage gains and nearly two years of persistent inflation.
So where should you live if you want to maximize your salary? Consider Memphis, Tennessee. SmartAsset, a consumer-focused financial information provider, analyzed 76 of the largest U.S. cities to see where $100,000 goes furthest, and the “Home of the Blues” topped the list with a take-home pay of a little over $86,000.
The state of Tennessee doesn’t tax earned income. So after federal and local taxes, a Memphian making $100,000 takes home about $74,500. But because the city’s cost of living is almost 14% lower than the national average, those earnings are actually worth over $10,000 more after making the adjustment for cost of living.
