Explore how location impacts your income with our 2025 city-wise salary comparison guide. See cost of living, remote work trends, and best cities to boost your take-home pay. Make smarter financial decisions before your next job move.
Discover how your salary stacks up across U.S. cities. Use our comprehensive guide and tools to make informed relocation decisions.
Relocating to a new city in the United States involves more than just a change of address—it can significantly impact your financial life. A $90,000 salary might feel comfortable in one location but fall short in another due to variations in housing, transportation, healthcare, and taxes. This is where salary comparison by city becomes essential.
Whether you’re planning a job change, moving for family reasons, or exploring better opportunities, understanding how your income translates across different U.S. cities helps you make confident and financially sound decisions.
In this guide, we’ll walk you through how to compare salaries effectively, tools you can use, real examples, and actionable strategies to negotiate better offers based on your city of interest.
Understanding Salary Variations Across U.S. Cities
Salary disparities across U.S. cities are influenced by multiple factors such as the local job market, cost of living, tax policies, and industry presence. For instance, a software engineer earning $120,000 in San Francisco may have a similar standard of living as someone earning $85,000 in Austin, Texas.
Let’s take a quick look at how salaries adjust between major U.S. cities when factoring in cost of living:
| Job Title | City 1: San Francisco, CA | City 2: Austin, TX | Adjusted Salary (Austin Equivalent) |
|---|---|---|---|
| Software Engineer | $120,000 | $85,000 | $86,500 |
| Registered Nurse | $105,000 | $74,000 | $75,800 |
| Marketing Manager | $135,000 | $95,000 | $97,300 |
Data source: Bureau of Economic Analysis and Payscale
These figures show that simply comparing raw salaries can be misleading. What matters more is purchasing power—how much you can buy or save after accounting for living expenses.
Factors That Influence Cost of Living and Salaries
Several variables come into play when comparing salaries across cities. Understanding these helps you calculate a more accurate city-to-city comparison:
1. Housing Costs
Housing is the biggest cost differentiator across U.S. cities. A one-bedroom apartment in Manhattan could cost upwards of $3,500/month, while a similar apartment in Charlotte might cost under $1,400/month.
2. Taxes
State income tax, sales tax, and property tax can eat into your take-home salary. For example:
- California has a progressive income tax rate that can go up to 13.3%.
- Texas has no state income tax but compensates with higher property and sales taxes.
3. Healthcare and Insurance
Premiums and out-of-pocket healthcare expenses vary by state. Health insurance in Massachusetts tends to be more expensive than in states like Idaho or Georgia.
4. Transportation and Utilities
Cities with robust public transport systems (like New York or Chicago) might save you the cost of owning a vehicle, unlike suburban cities where a car is essential.
Why Simple Salary Numbers Aren’t Enough
Let’s say you’re offered a job in Boston paying $110,000 while currently living in Dallas earning $95,000. At first glance, the offer looks great. But Boston’s living expenses are approximately 36% higher than Dallas. That means your raise could actually reduce your real income and savings potential.
Instead of guessing, using a cost of living calculator gives you an apples-to-apples comparison. Tools like NerdWallet’s Cost of Living Calculator allow you to see how far your salary will go in your new city and whether it’s worth the move.
Real-World Salary Comparison Examples by City
To illustrate how cost of living affects real earnings, let’s take three popular professions and compare average salaries across five major U.S. cities.
| Profession | New York, NY | Denver, CO | Chicago, IL | Atlanta, GA | Seattle, WA |
|---|---|---|---|---|---|
| Software Developer | $125,000 | $106,000 | $109,000 | $102,000 | $121,000 |
| Financial Analyst | $92,000 | $78,000 | $81,500 | $75,000 | $88,000 |
| Registered Nurse | $100,000 | $84,000 | $88,500 | $80,000 | $92,000 |
Salary data from U.S. Bureau of Labor Statistics
Now consider the cost-of-living indices for each of these cities (where 100 is the national average):
| City | Cost of Living Index |
|---|---|
| New York, NY | 187 |
| Denver, CO | 114 |
| Chicago, IL | 123 |
| Atlanta, GA | 106 |
| Seattle, WA | 150 |
Even though salaries in New York or Seattle are higher, the elevated cost of living in these cities significantly erodes the additional income. A financial analyst earning $92,000 in NYC may actually be better off financially with a $78,000 salary in Denver.
How Employers Adjust Salaries by Location
Large organizations with a national or global presence often use geographic pay differentials when determining compensation packages. A role might come with a 10–25% salary increase in high-cost areas such as San Francisco, Washington, D.C., or Boston.
Employers analyze multiple benchmarks:
- National average wages
- Local market rates
- Industry-specific trends
- Competitor salary benchmarks
- Labor market tightness or surpluses
Many HR departments also refer to third-party platforms like Glassdoor or ADP reports for benchmarking salary offers based on zip codes and role hierarchy.
Remote Work and Location-Based Pay: A New Debate
With remote work becoming mainstream, the traditional salary-by-city model is being challenged. Companies like Meta and Google have adjusted remote employee pay based on their location. Others, like Reddit and GitLab, have adopted a location-agnostic pay model to promote equity and retention.
Pros of location-based pay:
- Aligns with local cost of living
- Helps companies manage payroll budgets
- Enables fair internal compensation
Cons:
- May discourage relocation to lower-cost areas
- Can feel punitive to remote workers
- May create pay inequity for similar job roles
As remote work matures, businesses are experimenting with hybrid models that balance local economics and employee satisfaction.
Tax Implications and Salary Comparison by City
Another major factor in salary comparisons is local taxation—federal, state, and sometimes even city-level taxes can make a large difference in take-home pay. For instance, a salary of $100,000 in Florida (which has no state income tax) will yield significantly more net income than the same salary in California or New York.
Here’s a sample breakdown of effective income taxes on a $100,000 salary across selected cities:
| City | State Income Tax Rate | Estimated Take-Home Pay |
|---|---|---|
| Austin, TX | 0% | $77,500 |
| San Francisco, CA | 9.3% | $69,000 |
| Miami, FL | 0% | $78,200 |
| Boston, MA | 5% | $73,500 |
| Portland, OR | 9% | $69,200 |
*Estimates based on SmartAsset’s paycheck calculator
These figures show why it’s essential to look beyond the gross salary. In cities like San Francisco or Portland, despite high nominal salaries, effective take-home pay is heavily reduced by local tax policies and high living expenses.
Housing Costs by City – A Major Pay-Erosion Factor
For most individuals, housing is the largest monthly expense, and it varies wildly from one city to another. Even if two jobs offer similar salaries, the cost of renting or owning a home can lead to drastically different levels of financial comfort.
Let’s examine median monthly rents for a 1-bedroom apartment:
| City | Median Monthly Rent (1BHK) |
|---|---|
| New York, NY | $3,250 |
| Phoenix, AZ | $1,390 |
| Los Angeles, CA | $2,800 |
| Charlotte, NC | $1,460 |
| Washington, D.C. | $2,550 |
Source: Zillow Rental Data
It’s clear that someone earning $100,000 in Phoenix will retain significantly more discretionary income after rent than someone in New York City or Los Angeles. This is one reason why cities with lower housing costs but competitive wages, such as Charlotte or Austin, have become increasingly popular among remote workers and relocating professionals.
What People Really Want to Know in 2025
Search trends and user behavior reveal a growing demand for personalized, post-tax, and cost-adjusted salary comparisons. Users aren’t just searching “software engineer salary in San Francisco” anymore—they're asking:
- “Is $120K enough in Seattle?”
- “Which city offers the best tech salaries after rent?”
- “What’s the most affordable city for remote workers?”
To meet this demand, it’s critical that modern content not only displays salary numbers but also contextualizes them through living costs, taxes, housing, and quality of life.
Adjusted Salaries Based on Cost of Living Index
To help professionals make better relocation or remote work decisions, it's essential to look at adjusted salaries—what a salary is really worth after factoring in a city’s cost of living index (COLI). A $100,000 salary may stretch further in Pittsburgh than in San Jose, even if the base pay is identical.
Below is a comparison of adjusted salaries for a $100,000 gross salary across various cities using cost of living indexes:
| City | COLI (100 = Nat’l Avg) | Adjusted Salary Value |
|---|---|---|
| San Jose, CA | 178 | $56,180 |
| Denver, CO | 112 | $89,285 |
| Atlanta, GA | 104 | $96,154 |
| Pittsburgh, PA | 92 | $108,695 |
| Memphis, TN | 85 | $117,647 |
*COLI Source: Council for Community and Economic Research (C2ER)
As the table shows, someone earning $100,000 in Memphis may experience a lifestyle equivalent to someone making nearly twice as much in San Jose. These cost-adjusted figures make a powerful case for factoring in local expenses when evaluating job offers or considering relocation.
High-Demand Jobs and How Salaries Differ by City
Another layer of salary comparison involves industry-specific trends. For example, tech roles command high salaries in places like San Francisco, but many tech professionals are increasingly moving to emerging tech hubs like Austin or Raleigh for better quality of life.
Here’s how average software engineer salaries compare across select cities:
| City | Avg. Software Engineer Salary |
|---|---|
| San Francisco, CA | $145,000 |
| Seattle, WA | $137,000 |
| Austin, TX | $124,000 |
| Raleigh, NC | $117,000 |
| Kansas City, MO | $102,000 |
*Source: Levels.fyi
Even though San Francisco tops the list in gross salaries, after taxes and living costs, the adjusted purchasing power can often be lower than in cities like Austin or Kansas City. As companies embrace remote-first hiring, professionals now have more flexibility to optimize both earnings and living standards.
How Remote Work Has Transformed City-Based Salary Comparisons
The rise of remote work has blurred traditional geographic salary boundaries. While some companies still use location-based pay bands, many are shifting toward role-based compensation models. This allows workers to live in more affordable locations while retaining salaries tied to expensive cities like New York or San Francisco.
Major companies like Meta and Spotify have implemented remote work frameworks with geographically tiered compensation, according to Harvard Business Review. The impact? Professionals are migrating to smaller cities with lower costs, seeking a higher quality of life without sacrificing income.
Quality of Life vs. Salary: Balancing the Equation
While salary remains a primary consideration, other non-monetary factors heavily influence relocation decisions. These include commute times, healthcare access, public schools, safety, air quality, and overall quality of life.
According to U.S. News & World Report, cities like Boulder, Colorado and Madison, Wisconsin consistently rank high in livability, even if their average salaries aren’t among the nation’s highest.
| City | Median Salary | Quality of Life Score (0–10) | Unemployment Rate |
|---|---|---|---|
| Boulder, CO | $69,000 | 8.6 | 2.9% |
| Madison, WI | $63,500 | 8.4 | 3.0% |
| San Francisco, CA | $96,000 | 7.1 | 4.2% |
| Charlotte, NC | $61,000 | 7.9 | 3.6% |
| Tampa, FL | $58,000 | 7.5 | 3.1% |
The chart makes it clear that higher salary doesn’t always equal a better lifestyle. Cities like Boulder and Madison provide excellent healthcare, public services, and housing quality at more sustainable salary levels. Workers increasingly consider this balance in their long-term plans.
Tools and Resources for Real-Time Salary Comparison by City
If you're planning a move or negotiating a job offer, there are several powerful tools to help you analyze salaries by city in real time:
- Payscale's Cost of Living Calculator: Adjusts salaries based on your current and prospective cities.
- BLS Occupational Employment and Wage Statistics: Government-backed wage data across industries and states.
- Indeed Salary Explorer: Provides averages by role, city, and experience level.
These tools can offer insight not only into what you should be paid, but also into where your money will go the furthest.
Final Thoughts: Making Data-Driven Decisions
Whether you're evaluating a job offer, considering relocation, or simply benchmarking your earnings, understanding salary comparison by city empowers you to make data-driven decisions that go beyond paycheck numbers. The evolving landscape of remote work, rising cost of living in major metros, and growing opportunities in second-tier cities all reshape how professionals assess compensation.
For a complete, strategic financial plan, align your salary expectations with your city’s living costs, career growth potential, and lifestyle goals. And always use the right tools to validate offers and long-term value.
FAQ
Which U.S. city has the highest average salary in 2025?
As of 2025, San Jose, CA has one of the highest average salaries in the U.S., mainly due to its tech-driven economy and proximity to Silicon Valley.
How does cost of living affect salary value?
Even with a high salary, your actual savings may be low in expensive cities. A lower salary in an affordable city can offer better purchasing power.
Is it better to take a remote job from a high-paying city?
Yes, if your employer pays based on their location and you live in a low-cost area, remote jobs can give you a significant financial advantage.
What tools can I use to compare salaries by city?
You can use Payscale, BLS, and Indeed to compare salaries across cities and estimate the impact of relocation on your earnings.
Does working remotely affect salary offers?
Many employers now adjust salaries based on where the employee lives, so remote workers in low-cost areas may receive lower offers.
Are smaller cities catching up in salary trends?
Yes, cities like Raleigh, Austin, and Denver are attracting top talent with competitive salaries and better living standards.
How do I know if I’m being paid fairly in my city?
Use local salary data from sources like BLS and Payscale to benchmark your salary based on your role, experience, and city.
Kindly do not spam here. Thank you!