$100k in Austin
Your salary isn't what you earn. It's what you keep.
See the exact impact of TX taxes and Austin living costs on your paycheck.
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2026 IRS Brackets • FICA Limits • State & Local Rules
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📊 Austin Salary Guide
Austin Salary Guide: The Real Take-Home on a $100k Paycheck
You see the offer letter. $100,000. It feels like the golden ticket. But in Austin, TX, the gap between your gross salary and your actual spending power is defined by one massive variable: taxes.
As a financial analyst, I don’t care about the "sticker price" of your salary. I care about what hits your bank account. Here is the data-driven breakdown of what a six-figure salary actually looks like in the Texas capital.
The Verification Test ($100,000 Analysis)
Let’s run the verification test. We are taking a gross annual salary of $100,000 and stripping away the mandatory government deductions to find your Net Take Home Pay.
Here is the hard data on the "Real Paycheck":
- Gross Salary: $100,000
- Federal Tax: -$13,614
- FICA Tax (Social Security/Medicare): -$7,650
- State Tax: -$0
- Local Tax: -$0
The Result:
- Total Annual Take Home Pay: $78,736
- Monthly Net Pay: $6,561
The Analysis
When you strip away the noise, a $100k salary yields a 21.26% effective tax rate. You are losing roughly 1/5th of your income before you pay a single bill.
However, the math changes drastically depending on where you live. If you were making $100k in New York City, your state and local taxes would obliterate roughly an additional $5,000 to $7,000 of that income. In Austin, that money stays in your pocket.
The Bottom Line: You keep $78,736. The sticker price is irrelevant; this is your fuel.
Smart Budget Breakdown (50/30/20 Rule)
With a monthly net of $6,561, we apply the 50/30/20 rule to visualize your purchasing power. This is the standard for financial health: 50% to Needs, 30% to Wants, 20% to Savings.
1. Needs: $3,281 / Month (50%)
The Rent Question:
Can you live comfortably on this? Yes.
The median rent for a one-bedroom apartment in Austin proper hovers between $1,600 and $1,900. Let’s assume you pay $1,800 for a decent spot in a central neighborhood like East Austin or Hyde Park.
- Rent: -$1,800
- Utilities/Internet: -$200
- Groceries: -$450
- Transportation: -$300
- Remaining Buffer: $531
You have a healthy buffer within your "Needs" category. You can afford rent without being house-poor, provided you don't overspend on luxury housing.
2. Wants: $1,968 / Month (30%)
This is your lifestyle fund. Austin is an expensive city for "fun"—dinner downtown, concert tickets at ACL Live, and weekend bachelorette parties drive up costs. However, $1,968 is a robust budget for dining out, memberships, and travel.
3. Savings: $1,312 / Month (20%)
Wealth Creation:
This is the most critical number. Saving $1,312 monthly is strong. If you invest this in a diversified portfolio (S&P 500 index funds), assuming a conservative 7% annual return, this single line item builds a significant nest egg over time. This is how you move from "making a good salary" to "building wealth."
Austin Taxes vs The Competition
The "Texas Advantage" is real, but it comes with a trade-off.
| Location | Gross Salary | State/Local Tax Burden | Net Take Home |
|---|---|---|---|
| Austin, TX | $100,000 | $0 | $78,736 |
| New York, NY | $100,000 | ~$5,500+ | ~$73,200 |
| San Francisco, CA | $100,000 | ~$6,000+ | ~$72,700 |
The Verdict:
In Austin, you are paying roughly $5,000 to $6,000 less in taxes annually compared to high-tax states like New York or California on the same salary. That is an extra $400–$500 in your pocket every month purely for living in Texas.
The Trade-Off: Texas has some of the highest property tax rates in the nation. If you buy a home, the state recoups that income tax savings through your mortgage bill. For renters, however, the tax advantage is pure profit.
Frequently Asked Questions (FAQ)
What is the income tax rate in Austin?
0%. Austin residents pay zero state income tax. The effective tax rate on your salary is determined strictly by Federal and FICA taxes (roughly 21.26% on a $100k salary).
Is $100k a good salary in Austin?
Yes. While Austin has become more expensive, $100,000 is well above the city's median household income. With a net take-home of $6,561/month, you can afford a 1-bedroom apartment, fund a social life, and save over $1,300 monthly without living paycheck to paycheck.
Does Austin have a local city tax?
No. Austin does not levy a local income tax on residents. Your paycheck deduction is limited to Federal and FICA.
- Methodology: Calculations based on IRS 2026 tax brackets (standard deduction applied), Social Security (6.2%), and Medicare (1.45%) rates.
- Sources: Bureau of Labor Statistics (BLS) for wage data, Texas State Comptroller for tax structure verification, and local real estate market reports for rent benchmarks.