Introduction
Moving for a new job or better lifestyle? In 2025, prices and wages vary dramatically across metro areas. A six-figure salary in San Francisco might leave you with less savings than $85k in Austin or Raleigh.
This guide shows you how to compare the true cost of living across the top 50 US cities—and how to make your salary go further by modeling after-tax pay, rent or mortgage, and everyday expenses.
Understanding the Basics: How COL Metrics Work
Before using the calculator, understand the key terms:
COL Index (Cost of Living Index)
A normalized score where 100 = national average. A city with COL 130 is ~30% more expensive than average; a city with 85 is ~15% cheaper. Indices compare prices for a standard basket of goods/services.
RPP (Regional Price Parities)
Published by the Bureau of Economic Analysis (BEA), RPPs measure local price levels vs the US average. Useful for “what my money buys” comparisons. A city with RPP 110 means goods cost 10% more than average.
After-Tax Income
Your take-home pay after federal, FICA, state, and local taxes—plus any pre-tax benefits (401k, HSA/FSA). This is what you actually have to spend. Two cities with the same gross salary can have very different after-tax incomes due to state income tax differences.
Housing Burden
Share of income spent on housing. For renting: rent + utilities + parking. For buying: PITI + HOA. Target ≤30% of after-tax income where possible. In high-cost cities, many spend 40–50%.
Transportation, Healthcare, Quality Adjusters
Transportation: car costs (payment, insurance, fuel) vs transit passes. Healthcare OOP: premiums + deductibles + typical usage. Quality adjusters: crime, schools, commute, air quality—factors that don't show up in simple price indices.
Salary-to-COL ratio = after-tax income ÷ (COL index / 100)
Rough rule: ≥1.10 suggests lifestyle upgrade vs baseline
Housing burden = housing costs ÷ after-tax income
Target ≤30% where possible
Compare Cities Side by Side
Model after-tax income, housing, transit, healthcare, and more—then find where your salary goes furthest.
Step-by-Step Guide: Building a City Comparison
Use these steps alongside the EverydayBudd tools for precise, city-by-city comparisons.
Select cities & salary
Pick your current metro and 2–3 target cities. Enter your salary or offer and pay frequency. Decide if you're modeling current job, new offer, or remote scenario.
Model taxes & take-home
Use the Salary / Take-Home calculator to compute net pay per city/state.
- Choose filing status and state/local residency
- Include pre-tax benefits (401k, HSA/FSA, commuter)
- Compare effective tax rates across cities
Estimate housing
For renting: set bedroom count, neighborhood tier, utilities, parking.
For buying: use the Mortgage Calculator for PITI + HOA; incorporate property taxes and insurance. Commute/parking differences matter—urban core vs suburb can swing costs significantly.
Add core living costs
Enter monthly estimates for groceries, dining, utilities, internet/mobile, health insurance OOP, childcare/tuition, and entertainment. Use the built-in city presets, then adjust to your lifestyle.
Transportation choices
Toggle car vs transit: car payment/lease, insurance, fuel/EV charging, maintenance, tolls vs transit passes. In dense cities, add rideshare and parking line items.
Run the comparison
The tool calculates for each city:
- Net monthly income (after tax)
- Total monthly expenses
- Leftover savings and % of income saved
- Break-even salary to maintain your current lifestyle
Scenario testing
Try these toggles:
- Remote vs on-site (with or without city wage tax)
- Roommates vs solo housing
- Car vs car-free lifestyle
- Public vs private school
- Neighborhood tiers (budget / median / premium)
Scenario Playbook: Job Offers, Remote Moves, Lifestyle Upgrades
Here's how to apply the method to common situations:
Scenario 1: Big Metro vs Mid-Cost City for Same Job
- • After-tax: ~$8,200/mo
- • 1BR rent: ~$3,000/mo
- • Remaining after expenses: ~$1,800
- • Savings rate: ~22%
- • After-tax: ~$6,600/mo (no state tax)
- • 1BR rent: ~$1,500/mo
- • Remaining after expenses: ~$2,100
- • Savings rate: ~32%
Lower salary, higher savings. The mid-cost city wins on purchasing power.
Scenario 2: Remote Worker Leaving High-Cost HQ City
Same $120k salary, but moving from NYC to Austin or Raleigh. Key questions:
- Does employer allow full remote and adjust salary (geo-adjusted pay)?
- What are the tax implications? (NY→TX saves ~5–6% in state income tax)
- How much cheaper is housing? (Often 40–60% less for similar quality)
Run both scenarios in the calculator—even a 10% pay cut often leaves you ahead.
Scenario 3: Early-Career Move with Roommates vs Solo
- • Rent: ~$1,800/mo
- • Full privacy and flexibility
- • Monthly savings: ~$800
- • Your share: ~$1,100/mo
- • Shared common areas
- • Monthly savings: ~$1,500 (+$700)
Scenario 4: Family Move—Childcare + School Trade-offs
Two cities with similar housing costs but very different childcare/tuition and commute times.
- City A: $2,000/mo childcare, 45-min commute each way
- City B: $800/mo childcare (subsidized), 20-min commute
Childcare alone can swing the budget by $1,000+/month. Always factor this in for families.
Turn Shortlists into Real Numbers
Shortlist 2–4 cities and run your actual scenarios: different offers, remote vs on-site, rent vs buy.
Advanced Strategies: Tax & Lifestyle Optimization
Salary-to-COL Ratio
Divide your after-tax income by the city's COL index (normalized to 100) to compare real purchasing power. Target ≥1.10 for lifestyle upgrades vs your baseline city. Below 1.0 means you're taking a step back.
Tax-Efficient Benefits
In higher-tax states, maximize pre-tax contributions (401k up to $23,500 in 2025, plus HSA/FSA). This reduces taxable income while preserving cash flow—you keep more of each dollar.
Rent vs Buy Break-Even
Use Mortgage Calculator + Cost of Living tool to compare long-term vs short-term stays. If you'll stay <5–7 years in a high-cost market, renting often wins due to closing costs and opportunity cost.
Neighborhood Arbitrage
Live one transit stop or one county away for significantly lower rent or property taxes with similar amenities. This is especially powerful in metros with good transit or work-from-home flexibility.
Transportation Hack
In transit-rich metros, dropping a car can save $6k–$12k/year. Reallocate that to housing (get a better location) or savings. Even if you rideshare occasionally, you often come out ahead.
Remote Work Optimization
If allowed, establish tax residency in a no-income-tax or lower-tax state while keeping a big-city salary. Ensure compliance with employer policies and state nexus rules—verify with HR and a tax professional.
Common Mistakes to Avoid
- Comparing gross salaries only—always model after-tax pay
- Underestimating housing add-ons: utilities, parking, pet rent, fees
- Ignoring city/local taxes & fees: wage taxes, sales, utilities
❌ Assuming national averages fit your lifestyle
COL indices use average baskets. If you dine out often, have a car, or need childcare, adjust accordingly.
Instead: Customize each expense category in the Cost of Living tool.
❌ Forgetting moving costs
Deposits, broker fees, movers, furniture, overlap rent—often 1–2 months of expenses.
Instead: Budget a moving fund of $3,000–$10,000+ depending on distance.
❌ Not stress-testing
Rent can increase 5–10% annually; unexpected expenses happen.
Instead: Run scenarios with ±10–15% swings in key costs and add a surprise-expense buffer.
Frequently Asked Questions
Frequently Asked Questions
Which US cities are "most affordable" in 2025?
"Affordable" depends on your income, lifestyle, and priorities. Generally, Sun Belt and Midwestern metros (like San Antonio, Oklahoma City, Columbus, Kansas City, Jacksonville) have lower housing costs than coastal hubs while still offering strong job markets and amenities. However, "affordable" means different things—a city might be cheap on paper but expensive for your specific lifestyle. Use EverydayBudd's Cost of Living tool to compare your actual budget across cities.
Do cities with no state income tax always win?
Not always. States without income tax often make up revenue through higher property taxes, sales taxes, or insurance costs. Florida and Texas have no income tax, but property taxes and homeowner's insurance can be above average. Model your total monthly cost—after-tax income minus housing, taxes, and expenses—in the calculator to see which city actually gives you more savings.
How much salary do I need to move from City A to City B?
Use the Cost of Living tool's Break-Even Salary feature. It scales your current lifestyle to the target city's prices and taxes to show the equivalent salary you'd need. For example, if you earn $90k in a city with COL index 130 and want to move to a city with index 95, the tool calculates what salary maintains your purchasing power and savings rate.
What about remote-worker taxes?
If you work for an employer in another state, tax rules get complicated. Some states have reciprocity agreements; others have "convenience of employer" rules that tax you based on the employer's location. Before moving, confirm specifics with your HR/payroll team and check your state's Department of Revenue guidance. Remote-work tax rules are evolving, so verify annually.
Rent vs. buy in high-cost cities?
If you plan to stay less than 5–7 years or anticipate career moves, renting often offers better flexibility and lower risk. Buying makes more sense for long-term stays where you'll build equity and lock in housing costs. Use the Mortgage Calculator to compare total monthly cost of owning (PITI + maintenance) vs renting, and factor in closing costs and opportunity cost of your down payment.
How do I choose neighborhoods?
Start with commute time (to office or key destinations), safety/crime stats, school ratings if applicable, and housing options within budget. Visit at different times of day to check noise, parking, and walkability. Talk to locals and check online reviews. The calculator can help you compare how neighborhood tier (budget vs median vs premium) affects your overall budget.
This guide is educational; always check current local laws, employer policies, and consult a tax advisor before making decisions.
Conclusion & Action Checklist
You don't need guesswork to pick a city—just a consistent method: after-tax income + realistic budgets + scenario testing. The Cost of Living and Salary tools handle the math; you bring your actual numbers and priorities.
- Enter your current and 2–4 target cities into the Cost of Living tool.
- Use the Salary / Take-Home calculator to compare net pay across states.
- Add realistic housing, transit, childcare, and healthcare numbers—then stress-test with ±10–15% changes.
- Shortlist 2–3 neighborhoods and run rent vs buy with the Mortgage Calculator.
- When an offer arrives, use COL-adjusted data to set your negotiation target.
Ready to Pick Your City?
Run side-by-side comparisons, then negotiate salary using COL-adjusted data.
Related Tools & Guides
References
- Bureau of Labor Statistics (BLS): Consumer Price Index (CPI-U) and expenditure weights
- Bureau of Economic Analysis (BEA): Regional Price Parities (RPP) and personal income
- US Census Bureau (ACS): Median rents, household incomes, commuting modes
- HUD: Fair Market Rents and income limits
- IRS & State Departments of Revenue: State/local tax rules and brackets
- Transit Agencies & AAA: Fare schedules; automobile ownership and operating cost estimates
Created by the EverydayBudd City Insights Team. Built to pair with Cost of Living, Salary / Take-Home, and Mortgage tools. Based on sources like BLS CPI, BEA RPP, Census ACS, HUD, IRS, and state revenue departments.
Educational only—this isn't personalized advice. Verify tax rules with your employer and a professional.