The $100,000 Salary Analysis for Georgetown

This guide strips away the hype. A $100,000 salary is a benchmark, but in Georgetown, KY, your actual take-home pay is determined by the tax code, not your gross offer letter. We focus on "Purchasing Power"—what you can actually buy—versus the "Nominal Salary" listed on your contract.

1. The Verification Test

Do not budget based on $100,000. You do not earn $100,000. You earn your net pay. Here is the hard breakdown for a single filer in Georgetown.

• Nominal Salary: $100,000

• Federal Tax (Est.): -$14,600

• FICA (Social Security/Medicare): -$7,650

• Kentucky State Tax: -$4,800 (Kentucky has a flat income tax rate of 4.5%).

• Local City Tax (Georgetown/Scott County): -$1,000 (Est. 1% Occupational Wage Tax).

• Net Annual Pay: $71,950

• Net Monthly Pay: $5,995

Purchasing Power Reality: You are losing roughly 28% of your gross income to taxes immediately. Your true salary is roughly $72k, not $100k.

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

Based on your net monthly pay of $5,995, here is how the standard budget model applies to the Georgetown cost of living.

• Needs (50% - $2,997):
  • Rent: $950 - $1,150 (1BR Average).
  • Utilities: $150 - $200 (Electric/Water/Internet).
  • Groceries: $400 - $500.
  • Remaining for Transport/Insurance: ~$1,100.
• Wants (30% - $1,798):
  • Dining out, entertainment, shopping, travel. This is your disposable income.
• Savings/Debt (20% - $1,199):
  • Retirement contributions (401k), student loans, or emergency fund.

3. Georgetown Tax Context

Kentucky is a "Middle of the Road" state regarding taxation. It is not a tax haven, but it is significantly cheaper than the coasts.

• Vs. High-Tax (CA/NY): You are saving money. In California, a $100k salary would face a marginal state tax rate pushing 9.3%+ (on top of local city taxes in places like SF or NYC). Your net pay there could be $66k or lower.
• Vs. No-Tax (TX/FL): You are losing money. In Texas or Florida, you would pay $0 state income tax. Your net pay would be roughly $76,600 (an extra $4,650 in your pocket annually).

4. FAQ

"Is $100k good here?"
Yes, but with a caveat. $100k puts you well above the median household income for Georgetown. You will live comfortably. However, housing prices in Scott County have risen sharply; do not assume $100k qualifies you for a luxury mortgage. You are solidly middle-to-upper-middle class, but not "wealthy."

"Local income tax?"
Yes. Kentucky has a state income tax (currently 4.5%). Additionally, most Kentucky cities, including Georgetown, levy an Occupational Wage Tax (usually 1% on earnings). This is withheld from your paycheck. There is also a Real Property Tax on homes, which is relatively low compared to national averages, but it is a factor if you buy.