The Real Salary Guide to Bloomington, IN: What $100,000 Actually Buys

You see the job listing for $100,000 in Bloomington. It looks solid. But in the real world, the gross number is a vanity metric. The only number that matters is the cash hitting your bank account.

We ran the numbers through a 2026 tax simulator to show you exactly what your paycheck looks like in the Hoosier State.

The Verification Test ($100,000 Analysis)

Here is the brutal math behind a six-figure salary in Bloomington.

• Gross Salary: $100,000
• Federal Tax: -$13,614
• FICA (Soc/Med): -$7,650
• Indiana State Tax: -$4,500
• Local Tax: $0
• Total Deductions: -$25,764

Net Take-Home Pay: $74,236 Annually

The "Sticker Price" of your salary is $100k. The reality is $74,236. That is a 25.7% haircut before you pay a single bill.

This is the "Bloomington Discount." You are losing $25k to taxes, but you are avoiding the "City Premium" found in places like Chicago or New York where that same salary would face state taxes upwards of 8-10% and brutal municipal levies.

Smart Budget Breakdown (50/30/20 Rule)

Using the standard 50/30/20 rule, your monthly net income is $6,186. Here is how a single earner allocates that capital to build wealth, not just survive.

Needs ($3,093 / month)

This is your survival bucket. In Bloomington, this is highly liquid power.

• Rent: The median rent for a 1-bedroom is roughly $1,100–$1,250. You can secure a luxury unit near the downtown square or the Kirkwood corridor for under $1,400.
• Utilities/Internet: ~$150.
• Groceries: ~$400.
• Remaining Buffer: ~$1,500.

Verdict: You are not rent-burdened. You have significant breathing room here compared to the national average.

Wants ($1,856 / month)

This is the "Lifestyle" bucket.

• Dining out at Fogo de Chão or Malibu.
• Tickets to Indiana basketball games.
• The Countrywide Club membership.

Verdict: At $1,856, your disposable income exceeds the monthly needs of a minimum-wage worker. You have zero friction on leisure spending.

Savings ($1,237 / month)

This is the wealth creation engine.

• Roth IRA: Max it out ($583/mo).
• Index Funds: The remainder goes into the S&P 500.

Verdict: Saving $1,237 a month compounds to $296,880 in 10 years (assuming 7% market return). This is how you leave Bloomington rich.

Bloomington Taxes vs. The Competition

Bloomington sits in a tax "Goldilocks Zone." It is not a tax haven, but it is far from a tax trap.

Location	State Income Tax	Local Tax	Take Home ($100k Gross)	Savings vs. Bloomington
Bloomington, IN	3.05% (Flat)	0%	$74,236	Baseline
New York, NY	4% - 8% (Progressive)	~3-4% (Yonkers/NYC)	~$62,000	-$12,236 (You lose)
Austin, TX	0%	0%	~$76,300	+$2,064 (Slight Win)
Chicago, IL	4.95%	~1-3%	~$69,000	-$5,236 (You lose)

The Analysis:
Texas (Austin) wins on raw tax math, but costs significantly more in housing and insurance. New York destroys your wealth. Bloomington offers a stable, low-flat-tax environment that allows your high salary to stretch further.

Frequently Asked Questions (FAQ)

Q: What is the income tax rate in Bloomington?
A: Indiana utilizes a 3.05% flat individual income tax rate. This applies to all income tiers, meaning your effective tax burden scales linearly without penalty.

Q: Is $100k a good salary in Bloomington?
A: It is an excellent salary. With a take-home pay of roughly $6,186/month, you are earning nearly double the median household income of the city. You can afford a high-quality apartment, significant leisure spending, and max out retirement accounts.

Q: Does Bloomington have a local city tax?
A: No. While some Indiana municipalities levy income taxes, Bloomington currently does not impose a local city income tax on residents.

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Disclaimer: This guide utilizes IRS 2026 tax brackets for projection, Bureau of Labor Statistics (BLS) CPI data for cost-of-living adjustments, and Indiana State Comptroller tax rates. Figures are estimates for a single filer taking the standard deduction.