Is $100k a Good Salary in Chicago? Exploring the Cost of Living and Lifestyle - Luxury Apartments Chicago | Luxury Living (2024)

FAQs

Is $100 Ka a good salary in Chicago? ›

An $100,000 salary in Chicago can provide a comfortable lifestyle. You will have the means to cover essential expenses, enjoy dining out at restaurants, explore the city's cultural offerings, and partake in entertainment activities.

$30,900 is the 25th percentile. Salaries below this are outliers. $52,537 is the 90th percentile.

It can be more than enough for an individual or even a small family to live comfortably. With $100,000 a year, a person could cover typical expenses, pay down debt, build their savings, contribute toward retirement, invest, and still have enough money for entertainment, hobbies, and vacations.

One rule of thumb involves dividing your pretax earnings by 40. This means that if you make $100,000 a year, you should be able to afford $2,500 per month in rent. Another rule of thumb is the 30% rule. If you take 30% of $100,000, you will get $30,000.

Making $100,000 now is the equivalent of making $30,000 back then: middle class and not particularly comfortable. But this didn't happen overnight in 2021 or 2007.

Your net income, salary minus the taxes owed, is $73,259. For Missouri and Illinois, the total tax rate with federal, FIX and state income taxes considered on a $100,000 salary is around 27%.

The U.S. Census Bureau found that 37.1% of U.S. households earned at least $100,000 in 2022. Here's a more detailed breakdown of six-figure income brackets and the percentage of households in each one: $100,000 to $149,999: 16.9%

While your income is a solid starting point, lenders also scrutinize your debt-to-income ratio, credit score, and other financial obligations. With a $100k salary in today's market, you could qualify for a mortgage between $250,000 and $350,000.

One estimate found that the median U.S. household income is $77,397. Only 18% of individual Americans make more than $100,000 a year, according to 2023 data from careers website Zippia. About 34% of U.S. households earn more than $100,000 a year, according to Zippia.

Generally speaking, $100,000 is a good six-figure salary for a single person. Before taxes, $100,00 works out to roughly $8,333 per month. Whether that's enough for you depends largely on where you live. Savings, property ownership, and discretionary funds may be achievable in an area with a low cost of living.

How much should your rent be if you make 40 000 a year? ›

If you make $40,000 a year, you can afford to spend $1,000 a month on rent. If you make $50,000 a year, you can afford to spend $1,250 a month on rent. If you make $75,000 a year, you can afford to spend $1,875 a month on rent.

40x Rent Rule

For example, a household that earns $80,000 per year can afford a maximum monthly rent of $2,000 (80,000 ÷ 40 = 2,000). The 40x rule has a few flaws. It doesn't consider monthly expenses like debt payments or medical costs.

As of Sep 3, 2024, the average annual pay for the Six Figures jobs category in Chicago is $96,853 a year. Just in case you need a simple salary calculator, that works out to be approximately $46.56 an hour. This is the equivalent of $1,862/week or $8,071/month.

Potential home price: Around $300,000

With this combination, you could potentially afford a home priced around $300,000. Let's see what your monthly obligations might look like: Monthly payment: ~$2,300 (including estimated taxes and insurance) Down payment: $60,000.

$100k goes furthest in El Paso, TX.

With no state or local income taxes and a 12% discount on cost of living, a $100k income equates to $88,840 of purchasing power.