The $100,000 Salary Analysis for Gaithersburg, MD

This guide strips away the optimism. We are looking at raw purchasing power in a high-cost-of-living (HCOL) area. $100,000 is a psychological benchmark, not a wealth threshold.

1. The Verification Test

Let's see what actually hits your bank account. We assume Single Filer, Standard Deduction.

• Gross Annual Salary: $100,000
• Gross Monthly: $8,333

The Deductions:

• Federal Income Tax: ~$14,000/yr (Effective rate ~14% after deductions).
• FICA (Social Security/Medicare): $7,650/yr (Flat 7.65%).
• Maryland State Income Tax: ~$4,800/yr (Est. using progressive brackets, effective rate ~4.8%).
• Local County Tax (Montgomery County): ~$1,700/yr (Est. 3.2% bracket).

The Net Reality:

• Total Annual Tax Burden: ~$28,150
• Monthly Take-Home Pay: ~$5,987

Note: This assumes you do not contribute to a 401k or Health Insurance. If you do, subtract another $500-$800/month immediately.

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

Using the $5,987 net monthly income, here is how the math works in Gaithersburg.

The 50% Needs ($2,993)

• Rent (1BR Market Avg): $2,100 - $2,300. (Your "Rent: $None" input is incorrect; market rate is high).
• Utilities (Electric/Heat/Internet): $200.
• Car Insurance/Gas: $300 (Gaithersburg is car-dependent).
• Groceries: $350.
• Result: You are likely over the 50% threshold just on basic survival.

The 30% Wants ($1,796)

• Dining out, entertainment, subscriptions, hobbies.
• Result: You have roughly $60/day to spend on "wants" if you haven't already blown the budget on rent.

The 20% Savings ($1,197)

• Emergency fund, 401k match capture, debt repayment.
• Result: If you have student loans or a car payment, this bucket is empty.

3. Gaithersburg Tax Context

Gaithersburg (Montgomery County) sits in a specific tax tier.

• Vs. No Tax States (TX/FL/NV): Your $28,150 annual tax burden in MD would be $0 in Texas or Florida. To match the net pay of a $100k MD job, you would need to earn roughly $72,000 in Houston or Orlando.
• Vs. High Tax States (CA/NY): You are paying roughly $3k-$5k less in state/local taxes than you would in NYC or San Francisco, but the rent in Gaithersburg is significantly lower than those metros, offering a slight edge.

4. FAQ

"Is $100k 'good' here?"
It is a survival salary for a single person trying to live alone and save. It is comfortable if you have a partner splitting rent. It is difficult if you are trying to buy a home (median price $600k+) on this single income.

"Local income tax?"
Yes. Montgomery County charges a local income tax on top of the Maryland state tax. It is roughly 3.2%. It is automatically deducted from your paycheck. You cannot opt out.