The $100,000 Salary Analysis for Brookings

This guide strips away the hype. A $100,000 salary in Brookings, SD, is a solid number, but it is not "rich" once the government and basic costs take their cut. We analyze the math on $100,000 (Nominal) vs. what you actually have to spend (Purchasing Power).

1. The Verification Test

Here is the reality of a bi-weekly paycheck on a $100,000 annual salary. We are assuming you are a single filer taking the Standard Deduction.

• Gross Salary: $100,000
• Federal Income Tax: ~$13,900 (Effective rate ~14%)
• FICA (Social Security/Medicare): $7,650 (Mandatory 7.65%)
• South Dakota State Income Tax: $0 (SD has no individual income tax)

Net Pay (Take-Home): $78,450

• Monthly Net Pay: $6,537

2. Smart Budget (50/30/20)

Using the 50/30/20 rule (Needs/Wants/Savings) based on your monthly net of $6,537.

Needs (50% = $3,268)

• Rent (1BR Average): $789
• Utilities (Electric/Heat/Water): ~$200
• Groceries: $400
• Transportation (Gas/Insurance): $350
• Remaining for Needs: $1,529 (Plenty of buffer for phone, internet, etc.)

Wants (30% = $1,961)

• This is your discretionary spending. Dining out, entertainment, travel, or a car payment.

Savings (20% = $1,307)

• This is your actual wealth building. $1,307 per month goes to investments, debt payoff, or emergency funds.

3. Brookings Tax Context

South Dakota is an outlier.

• Brookings, SD: No state income tax. You keep $78,450.
• High-Tax (California/NY): You would lose an additional ~$6,000 to state tax. Net pay drops to ~$72,000.
• Low-Tax (Texas/Florida): Equivalent to SD. No state income tax.

The Trade-off: You save $500+ per month in taxes here compared to the coasts. However, you must weigh this against potential higher salary offers elsewhere.

4. FAQ

"Is $100k good here?"
Yes. The Median Household Income in Brookings is roughly $65,000. At $100k, you are earning ~50% more than the average household, not just the average individual. You will live comfortably.

"Local income tax?"
No. Brookings city does not levy a local income tax. Only the federal government takes a cut.