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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About the author
Enrique 'Kike' Faúndez is an Information Systems and Management Control Engineer from Universidad de Chile, with master’s degrees in Finance from Universidad de Chile and Industrial Engineering from Pontificia Universidad Católica de Chile. He has 15+ years of experience in regulated financial services across finance, operations, and digital product development. He founded CashControlly in Santiago, Chile, with the conviction that personal financial control should not be a privilege, but an accessible and well-designed tool.
- Master's in Finance, Universidad de Chile
- Master's in Industrial Engineering, Pontificia Universidad Católica de Chile
- Information Systems and Management Control Engineer, Universidad de Chile
- AI and ITIL certifications
- 15+ years in regulated financial services
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