March 20th 2024.
A recent study conducted by SmartAsset, a financial technology company, has shed light on the cities where a $100,000 salary offers the most purchasing power. Interestingly, half of the top 10 cities on this list are located in the great state of Texas. This comes as no surprise, as Texas seems to dominate the economic landscape with its thriving cities and business-friendly policies.
Leading the pack is El Paso, Texas, where a six-figure income can stretch up to $88,840 after factoring in taxes and living expenses. The city's lower-than-average cost of living, especially in terms of housing, contributes significantly to its high ranking. According to data from RentCafe, both homebuying and renting costs in El Paso are nearly 30% cheaper than the national average.
It's worth noting that Texas' tax-friendliness, particularly its lack of state income taxes, plays a significant role in attracting residents seeking financial stability. However, it's essential to keep in mind that Texans still have to pay federal income tax and grapple with some of the highest property taxes in the country.
These findings align with the broader migration trends, with Texas ranking as the top destination for Gen Zers in 2022, according to Zillow's analysis of migration data. It seems that younger Americans are increasingly recognizing the financial benefits of relocating to the Lone Star State.
Apart from El Paso, other Texas cities that made it to the top 10 list include Corpus Christi, San Antonio, Lubbock, Houston, and even the state's capital, Austin. This is a testament to the state's overall appeal, with its diverse range of cities offering something for everyone.
But what makes Texas stand out, you ask? Well, apart from its thriving economy and job opportunities, the state's tax policies undoubtedly play a significant role. With no state income tax, residents can keep more of their hard-earned money. However, it's essential to remember that they still have to pay substantial federal income taxes and contend with high property taxes.
It's no wonder that Texas ranks as the preferred destination for Gen Zers, individuals born between 1996 and 2004, according to Zillow's analysis of migration data. With its promising economic outlook and lower cost of living, it's no surprise that the state is attracting a younger demographic.
So, without further ado, here are the top 10 cities where a $100,000 salary goes the furthest: El Paso, Texas; Oklahoma City, Oklahoma; Memphis, Tennessee; Corpus Christi, Texas; San Antonio, Texas; Lubbock, Texas; Tulsa, Oklahoma; Jacksonville, Florida; Houston, Texas; and St. Louis, Missouri.
While lists like these can be beneficial for individuals considering relocation, it's essential to take into account personal preferences and individual circumstances. After all, no one knows what's best for you better than yourself.
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