The $100,000 Salary Analysis for Aberdeen

This guide assumes a single filer with the standard deduction. No pre-tax 401(k) or health insurance contributions are factored into these gross/net calculations. $100k is $100,000.

1. The Verification Test

Your gross salary does not hit your bank account. Here is the reality of the deduction schedule on a $100,000 gross salary.

• Federal Income Tax: ~$14,000 (Effective tax rate ~14%).
• FICA (Social Security & Medicare): ~$7,650 (7.65% flat).
• South Dakota State Income Tax: $0 (SD is one of nine states with no personal income tax).

Estimated Annual Net Pay: $78,350
Estimated Monthly Net Pay: $6,529

2. Smart Budget (50/30/20)

Using the standard rule on your monthly net pay of $6,529.

50% Needs ($3,264)

• Rent (1BR): $None. (You specified no rent data; assume market rate for a decent 1BR is $800–$1,000).
• Utilities (Electric/Heat/Water): $250–$300 (High variance due to heating costs).
• Groceries: $400.
• Transportation: $300 (Gas/Insurance; public transit is limited).
• Remaining for Needs: ~$2,229 (Plenty of buffer).

30% Wants ($1,958)

• Entertainment, dining out, hobbies. This is disposable income.

20% Savings & Debt ($1,305)

• $1,305/month available for retirement, emergency fund, or debt repayment.

3. Aberdeen Tax Context

South Dakota is a tax haven for high earners.

• No State Income Tax: You keep $78,350 of your $100,000.
• Vs. High-Tax (CA/NY): In California, you would likely net ~$72,000 (losing ~$6,000 more).
• Vs. Low-Tax (TX/FL): You are essentially equal. Texas and Florida also have $0 state income tax.
• The Catch: To fund infrastructure without income tax, SD relies on high Sales Tax. Aberdeen has a combined rate of roughly 6.5%.

4. FAQ

"Is $100k good here?"
Yes. The median household income in Brown County is roughly $65,000. At $100k, you are in the top earning tier for the area. Your purchasing power is high, provided you do not require the amenities of a major metro.

"Local income tax?"
Zero. There is no city or county income tax in Aberdeen.