How much money you need to make to live comfortably in America’s 10 most expensive cities

But as the cost of living in the U.S. increased to a 40-year-high in 2022, living comfortably became harder to do. While inflation has started to cool down some this year, simply existing still seems to cost a pretty penny. A recent report from SmartAsset found that you’ll need to earn an average $68,499 post-taxes to live comfortably in America’s 25 biggest metro areas. That’s a 20% increase from a year ago, when you needed just $57,013 after taxes.

But that new average is higher or lower depending on which city you live in—especially if you’re in a larger metro area that’s already known for a higher cost of living. 

SmartAsset looked at the salary needed to live comfortably in the 25 metro areas by using the 50/30/20 budgeting rule (where 50% of post-income goes toward essential living costs like housing, 30% toward discretionary spending, and 20% toward savings or paying off debt). It used MIT’s Living Wage Calculator from 2022 to calculate the basic cost of living for people without kids in each metro area, defining that as the 50% of essential living expenses. It then calculated the total take-home pay individuals would need to spend an extra 30% on discretionary items and 20% on savings or debt. 

The 10 major metro areas that require the highest post-tax salary for comfortable living may come as no surprise: 

1. San Francisco-Oakland-Berkeley, CA: $84,026
2. San Diego-Chula Vista-Carlsbad, CA: $79,324
3. Boston-Cambridge-Newton, MA-NH: $78,752
4. New York-Newark-Jersey City, NY-NJ-PA: $78,524
5. Seattle-Tacoma-Bellevue, WA: $77,634
6. Los Angeles-Long Beach-Anaheim, CA: $76,710
7. Washington-Arlington-Alexandria, DC-VA-MD-WV: $76,194
8. Portland-Vancouver-Hillsboro, OR-WA: $74,086
9. Denver-Aurora-Lakewood, CO: $70,892
10. Orlando-Kissimmee-Sanford, FL: $67,740

Three are in California, with the San Francisco and San Diego metro areas taking the top spots, where you’ll respectively need around $84,000 and $79,000 after taxes to live comfortably. It might explain why so many remote workers and ultrawealthy individuals like Mark Wahlberg fled the state during the pandemic for other states with lower tax rates, better housing markets, and a more affordable cost of living. (Although that doesn’t always turn out to be as sweet a deal as movers think; Texas has high property taxes that rival California’s income tax.)

Others stayed in-state, moving to more affordable areas nearby. But such migration patterns have created a ripple effect in some areas, disrupting their cost of living. Consider that the income demands to live comfortably in the Riverside–San Bernardino–Ontario metro area, ranked 11th on the list and located near the costlier Los Angeles, had the steepest one-year hike.

High cost of living and movement typically impact low-wage workers most. In California, many such workers recently went on strike for better working conditions and salaries. Minimum wage in the state is $15.50 hourly, almost twice the federal requirement but still not enough to match the pace of inflation. 

“We used to be able to afford to go out to eat, but even fast food is expensive…we would donate to the food banks and now we’re finding ourselves going to those same food banks to get things for ourselves,” Tammy Rodriguez, a Department of Motor Vehicles employee, said in March, as reported by the Los Angeles Times. 

Simply scraping by makes living comfortably seem like a dream.