Where Your Salary Goes Furthest: Cost-of-Living Adjusted Pay by City
A $150,000 salary in San Francisco doesn't go as far as a $100,000 salary in Austin. Here's how to calculate your real purchasing power.
The $40,000 Illusion
Software Developer in San Francisco
$173,783
→ Purchasing power: $102,648
Software Developer in Austin
$133,604
→ Purchasing power: $121,458
Despite earning $40,000 less, the Austin developer has $18,810 more in real purchasing power.
Understanding Cost of Living
Cost of living measures how expensive it is to maintain a standard of living in a particular location. It factors in housing, groceries, transportation, healthcare, and other daily expenses.
The national average cost of living index is 100. A city with an index of 150 means things cost 50% more than average; an index of 90 means things cost 10% less.
To calculate your cost-adjusted salary: (Salary ÷ COL Index) × 100 = Adjusted Salary
Cost of Living Index by City
| City | COL Index | Category | $100K Becomes |
|---|---|---|---|
| San Francisco, CA | 169.3 | Very High | $59,067 |
| New York, NY | 160 | Very High | $62,500 |
| Boston, MA | 149 | High | $67,114 |
| Los Angeles, CA | 148.5 | High | $67,340 |
| Seattle, WA | 141.6 | High | $70,621 |
| Washington, DC | 144 | High | $69,444 |
| Denver, CO | 120 | Above Average | $83,333 |
| Austin, TX | 110 | Above Average | $90,909 |
| Chicago, IL | 107 | Average | $93,458 |
| Atlanta, GA | 103.1 | Average | $96,993 |
| Dallas, TX | 102 | Average | $98,039 |
| Phoenix, AZ | 100.8 | Average | $99,206 |
| Houston, TX | 96.5 | Below Average | $103,627 |
| Detroit, MI | 89.5 | Low | $111,732 |
* "$100K Becomes" shows the equivalent purchasing power of a $100,000 salary in that city
What Drives Cost of Living
Housing (30-40%)
The biggest factor. A 1-bedroom in SF averages $3,500/month vs $1,500 in Austin. This single factor can swing COL by 50+ points.
Groceries (10-15%)
Food costs vary by 20-30% between expensive and affordable cities. Coastal cities tend to have higher grocery prices.
Transportation (15-20%)
Gas prices, car insurance, and public transit costs. Cities with good public transit can offset car ownership costs.
Healthcare (5-10%)
Medical costs vary significantly by region. States with more healthcare competition tend to have lower costs.
Best Value Cities for Workers
These cities offer strong job markets with reasonable living costs:
Austin, TX
No state income tax, booming tech scene, COL 10% above average
Denver, CO
Growing job market, outdoor lifestyle, COL 20% above average
Atlanta, GA
Major corporate hub, diverse economy, COL at national average
Dallas, TX
No state income tax, affordable housing, major employers
Chicago, IL
World-class city amenities at near-average cost of living
Making the Right Choice
Cost of living isn't everything. Consider these factors when comparing job offers across cities:
- Career growth: Some cities offer better networking and advancement opportunities
- State taxes: Texas, Florida, and Washington have no state income tax
- Lifestyle: Climate, culture, and proximity to family matter
- Remote work: If you can work remotely, you might get coastal salaries with Midwest COL
- Long-term wealth: Lower COL cities make it easier to save and invest
Calculate Your Adjusted Salary
Use our salary comparison tool to see what you should earn in different cities based on your current compensation.
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