WASHINGTON — Many people believe living around Washington D.C. needs a warning like the one found on the side mirror of a car: your money will not go as far as it appears.
A tweet with more than 100,000 views claims $100,000 in Washington D.C. is actually only worth approximately $44,000.
THE QUESTION
Is $100,000 only worth $44,307 in Washington D.C.?
THE SOURCES
THE ANSWER
The value of money does not change by city, but a $100,000 salary may feel like $44,307 in Washington D.C. based on factors related to the cost of living.
WHAT WE FOUND
Some places are much cheaper to live than others, and the tweet in question highlights the financial challenges people in some cities are more likely to face.
The data in the tweet come from a report SmartAsset released in March.
It estimated how far a $100,000 salary would go in dozens of large U.S. cities based on their income taxes and the cost of living, as calculated by the Council for Community and Economic Research.
Memphis rated as the cheapest. According to the study, someone making $100,000 in Memphis would feel like their take-home pay was $86,444. The rest of the top ten is occupied by cities in the Midwest and Texas. SmartAsset says taxes in those locations are lower, as is the cost of living.
Washington D.C. checks in as the fourth-most expensive city on the list, with a $100,000 salary feeling like $44,307 in take-home pay.
The Missouri Economic Research and Information Center reports that Hawaii was the only state with a higher cost of living than Washington D.C. in the first quarter of 2023. Local prices for groceries, utilities, transportation, and health care were all worse than the national average, but housing was the biggest culprit. Its data showed that housing costs almost two and a half times more here than in the rest of the country.
All those extra costs are why SmartAsset says money only goes about half as far in Washington D.C. as it does in Memphis.
The only cities in the SmartAsset report to rate worse than Washington D.C. were San Francisco, Honolulu, and New York City, where a $100,000 salary would only feel like $35,791.