The purchasing power of a $100,000 salary varies by 40–60% depending on which US state you live in. Remote work has made state selection a financial decision with $20,000–$50,000/year in real impact.
Cost of living index by state (MIT/MERIC 2026 est.)
| State | COL index (100=national avg) | Effective salary equiv. |
|---|---|---|
| Hawaii | 192 | $100k = $52k purchasing power |
| California | 151 | $100k = $66k |
| New York | 148 | $100k = $68k |
| Texas | 92 | $100k = $109k |
| Tennessee | 88 | $100k = $114k |
| Mississippi | 83 | $100k = $120k |
| Kansas | 86 | $100k = $116k |
The remote work geographic arbitrage
A software engineer earning $160,000/year while living in San Francisco (housing: $3,500/month) who moves to Raleigh NC or Austin TX (housing: $1,800/month) saves $20,400/year in housing alone — plus lower state taxes, lower everything-else costs. Over 10 years invested: $350,000+ in additional wealth from the location decision alone.
The no-state-income-tax states
Nine states with no income tax: Alaska, Florida, Nevada, New Hampshire (on wages), South Dakota, Tennessee, Texas, Washington, Wyoming. For a $150,000 earner in California (13.3% top rate): moving to Texas saves $19,950/year in state taxes. Over 10 years: $200,000+ in tax savings.
What cost of living data misses
- Job market depth — can you earn the same salary in a cheaper state?
- Quality of public schools (impacts private school costs)
- Healthcare quality and access
- Social and professional network disruption cost
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