Bureau of Labor Statistics says you need to earn about $129,000 today to have the same purchasing power as $100,000 a decade ago

5/19/2023

Per CNBC

The Bureau of Labor Statistics revealed that those that wanted to experience the same purchasing power as someone a decade ago would if they were making $100,000 annually would need to earn more today. The data showed that to achieve the same purchasing power, people today would have to earn $129,000 annually.

This was the difference between 2013 numbers and today's numbers, with higher prices requiring people now to earn more to achieve the same purchasing power. It was also reported that this was due to the dollar having an average annual inflation of 2.6% in 2013, reaching a 29% cumulative rate.

It was also noted that purchasing power also differs depending on where people were, with people in New York City earning $100,000 having very different purchasing power compared to people in Memphis, Tennessee, earning the same amount.

One big difference is that Tennessee doesn't earn income tax. Per SmartAsset, this means those in Memphis earning $100,000, after federal and state taxes, would only take home $74,515.

This comes as the city's cost of living sat below the national average by 14%. SmartAsset found that due to high costs and the combination of federal, state, and local tax, a $100,000 New York salary only felt like $35,791.

Here's what a $100,000 salary felt like in these other expensive places.

Honolulu - $36,026
San Francisco - $36,445
Washington - $44,307
Los Angeles - $44,623
Long Beach - $44,623
San Diego - $46,167
Oakland - $46,198
Seattle - $48,959

It was reported that to achieve a take-home pay of $100,000 annually after taxes and living expenses, a person would have to make $300,000 in salary in New York City and San Francisco. This comes due to the high cost of living in the two areas, with the most expensive cities needing residents to earn over $180,000 annually to achieve a purchasing power equivalent to $100,000.

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