The $100,000 Salary Analysis for Decatur, AL

This guide cuts through the noise. A nominal salary is what hits your paycheck; purchasing power is what you can actually buy with it. In Decatur, $100k is a solid income, but it is not "rich" after the government takes its share.

1. The Verification Test

Let's break down a $100,000 gross salary to see what actually lands in your bank account. This assumes you are single, filing as "Single," and taking the standard deduction.

• Gross Income: $100,000
• Federal Income Tax: ~ $13,838 (Marginal rate 24%)
• FICA (Social Security & Medicare): $7,650
• Alabama State Income Tax: ~ $4,280 (Alabama has a progressive tax structure with a top rate of 5% for income over $3,000).

Total Tax Burden: ~ $25,768 (25.8% effective rate)

• Estimated Net Pay (Monthly): ~ $6,186
• Estimated Net Pay (Annually): ~ $74,232

2. Smart Budget (50/30/20 Rule)

The 50/30/20 rule is a benchmark. In Decatur, your money goes further than in major metros, but discipline is still required.

• 50% Needs (~$3,093/month)

  • Rent (1BR Avg): $763
  • Utilities (Elec/Water/Gas): ~ $180
  • Groceries: ~ $400
  • Transportation (Gas/Insurance): ~ $300
  • Remaining for Needs: $1,450 (Covers insurance, phone, maintenance).

• 30% Wants (~$1,856/month)

  • This is your disposable income for dining out, entertainment, and hobbies. Decatur is low-cost enough that this category can be aggressively funded if you are frugal on housing.

• 20% Savings/Debt (~$1,237/month)

  • This is $14,844 annually. This is a healthy amount to build an emergency fund or contribute to retirement, but it will not make you a millionaire overnight.

3. Decatur Tax Context

Alabama is a high-income tax state relative to its neighbors.

• Vs. Texas or Florida: Both have 0% state income tax. On a $100k salary, you are paying roughly $4,280 more per year in Alabama than you would in Dallas or Orlando. That is $356 per month less in purchasing power.
• Vs. California: Alabama is significantly cheaper. CA state tax on $100k would be roughly $6,000–$7,000 (depending on city), plus higher cost of living.
• Vs. Illinois: IL has a flat 4.95% tax. Alabama is slightly cheaper for lower brackets but catches up at higher incomes.

Verdict: You pay for the privilege of living in Alabama with your time (longer drives, less infrastructure) and sales taxes, but the income tax hit is moderate.

4. FAQ

"Is $100k good here?"
Yes. It is well above the median household income for Decatur and Morgan County. You will live comfortably, afford a decent apartment, drive a reliable car, and save money. However, it is not "coastal rich." It is "Alabama comfortable."

"Local income tax?"
No. Decatur city government does not levy a local income tax. You only pay state and federal.