Securing both financial success and career opportunities comes at a cost — one that is growing each year. Overall, Americans need an average post-tax income of $68,499 to live comfortably in the U.S., according to recent data from SmartAsset.
SmartAsset’s study analyzed the after-tax income needed to live in the nation’s 25 largest metro areas comfortably. To determine each city’s required salary, SmartAsset employed the 50/30/20 rule, which defines a comfortable lifestyle as one in which 50% of after-tax income is applied to basic living expenses (needs), 30% to discretionary income (wants) and 20% to savings and debt.
The MIT Living Wage Calculator was used to calculate basic living expenses for each city.
The post-tax salary needed in these 25 areas increased by around 20% throughout 2022, while inflation grew about 8%.
Persistent inflation has led Americans to think more consciously about the cost of living throughout the country, Susannah Snider, a certified financial planner and managing editor at SmartAsset, tells CNBC Make It.
“Inflation is taking a bigger bite out of their paychecks and the cost of living is rising. What does it take in these cities to really feel not just like you’re surviving financially, but like you’re comfortable? Like you’re thriving?” Snider says.
How much Americans need to live comfortably
For the second year in a row, St. Louis is the most affordable city on the list, with a required after-tax salary of $57,446. In contrast, San Francisco requires the highest take-home pay to maintain a comfortable lifestyle at an after-tax salary of over $84,000.
Income demands in Southern California rose nearly 30% this year; the Riverside metro area, for example, had the most acute one-year increase in required income, up 27.28% from 2022.
Here are the salaries needed to live comfortably in 15 major U.S. cities:
- San Francisco metro area: $84,026
- San Diego metro area: $79,324
- Boston metro area: $78,752
- New York metro area: $78,524
- Seattle…
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