Here Are the Cities Where Your Paycheck Goes the Farthest

Purchasing power can vary greatly depending on where you live.

A new Bankrate study examined data from the U.S. Bureau of Economic Analysis to see where the cost of living takes the largest (and smallest) portions of a paycheck. In the report, “cost of living” is defined as the money required to live in a certain area to cover the basics, including groceries, housing, utilities, transportation, and healthcare. It also factors in specifics, from apartment rent to the price of cooking oil.

San Francisco topped the list with living costs taking the most bite out of the average worker’s wages. There, buying power is diminished by more than 15%.

According to Payscale, housing in San Francisco is 182% more expensive than the national average, with utilities and groceries costing 48% and 23% more than the average.

A worker with a $100,000 salary in San Francisco has the same buying power as someone making $79,000 in San Antonio after the cost of living is factored in for both cities, per Bankrate.

All of this can factor into where professionals choose to work and live.

“To determine if a compensation package is sufficient, it’s important to evaluate it comprehensively,” career coach Melissa Fleury told Bankrate.

How does your paycheck stack up against your city’s living costs?

U.S. Cities Where Workers Have the Most Purchasing Power

Out of the 25 largest metro areas in the U.S., there are only four cities where typical workers have more purchasing power when their wages are adjusted for the cost of living: San Antonio, St. Louis, Charlotte, and Detroit.

Related: This Is the Living Wage You Need in All 50 States

In San Antonio, the average worker makes $57,700 but actually has $61,580 in purchasing power. In San Antonio, housing costs are below the national average by over 20%, according to Apartments.com. Living in the city also means that workers pay 5.1% less than the national average for groceries, 17.4% less for utilities, and 6.3% less for transportation.

In St. Louis, a salary of $61,910 has the purchasing power equivalent of $64,289 due to the city’s low housing costs. According to Payscale, housing is 27% cheaper in St. Louis compared to the national average.

“Given that the same goods and services can often cost more or less in different parts of the country, it’s not always true that someone with higher wages makes more money,” said Bankrate economic analyst Sarah Foster, in the report.

Related: Here’s How Much It Costs to Live in America’s 10 Most Expensive Cities

U.S. Cities Where Workers Have the Least Purchasing Power

San Francisco topped the list with workers losing about 15% of their buying power, while four cities averaged at least 10%: Los Angeles, Seattle, New York, and Miami.

In Los Angeles, for example, where housing costs are 137% above the national average and transportation costs 33% more, the average annual salary of $73,400 feels like $63,550. In Phoenix, the average annual salary of $64,890 is more like $61,507 worth of goods and services in purchasing power. Though Phoenix’s grocery costs are only 4% higher than the national average, the cost of housing in the area is 16% higher.

Washington D.C., Denver, and Phoenix saw at least 5% of wages lost.

Related: The United States Is in a Housing Crisis — Here’s One Practical Alternative to Soaring House Prices

Here’s what workers typically make in the largest metropolitan areas in the U.S., and how much purchasing power they have when adjusted for the cost of living.

Least purchasing power:

1. San Francisco-Oakland-Fremont, CA Metro Area

Annual mean wages, before cost of living adjustment: $97,460

Wages after cost of living adjustment: $82,453

Change: -15.4%

2. Los Angeles-Long Beach-Anaheim, CA Metro Area

Annual mean wages, before cost of living adjustment: $73,400

Wages after cost of living adjustment: $63,550

Change: -13.4%

3. Seattle-Tacoma-Bellevue, WA Metro Area

Annual mean wages, before cost of living adjustment: $86,520

Wages after cost of living adjustment: $76,566

Change: -11.5%

4. New York-Newark-Jersey City, NY-NJ Metro Area

Annual mean wages, before cost of living adjustment: $82,050

Wages after cost of living adjustment: $72,933

Change: -11.1%

5. Miami-Fort Lauderdale-West Palm Beach, FL Metro Area

Annual mean wages, before cost of living adjustment: $63,380

Wages after cost of living adjustment: $56,691

Change: -10.6%

6. Boston-Cambridge-Newton, MA-NH Metro Area

Annual mean wages, before cost of living adjustment: $84,490

Wages after cost of living adjustment: $75,708

Change: -10.4%

7. San Diego-Chula Vista-Carlsbad, CA Metro Area

Annual mean wages, before cost of living adjustment: $76,010

Wages after cost of living adjustment: $68,170

Change: -10.3%

Most purchasing power:

1. San Antonio-New Braunfels, TX Metro Area

Annual mean wages, before cost of living adjustment: $57,700

Wages after cost of living adjustment: $61,580

Change: 6.7%

2. St. Louis, MO-IL Metro Area

Annual mean wages, before cost of living adjustment: $61,910

Wages after cost of living adjustment: $64,289

Change: 3.8%

3. Charlotte-Concord-Gastonia, NC-SC Metro Area

Annual mean wages, before cost of living adjustment: $64,440

Wages after cost of living adjustment: $66,433

Change: 3.1%

4. Detroit-Warren-Dearborn, MI Metro Area

Annual mean wages, before cost of living adjustment: $64,360

Wages after cost of living adjustment: $65,673

Change: 2.0%

5. Houston-Pasadena-The Woodlands, TX Metro Area

Annual mean wages, before cost of living adjustment: $63,510

Wages after cost of living adjustment: $63,383

Change: -0.2%

6. Atlanta-Sandy Springs-Roswell, GA Metro Area

Annual mean wages, before cost of living adjustment: $66,910

Wages after cost of living adjustment: $66,313

Change: -0.9%

7. Orlando-Kissimmee-Sanford, FL Metro Area

Annual mean wages, before cost of living adjustment: $57,960

Wages after cost of living adjustment: $57,329

Change: -1.1%

For the full Bankrate report, click here.