The Madison, WI Salary Guide: The Real Value of a $100k Paycheck

Quick Navigation: The Verification Test | Smart Budget Breakdown | Tax Competition | FAQ

You got the offer letter. It reads $100,000. In the tech hubs or the Northeast, that number gets eaten alive by taxes and rent. But in Madison, Wisconsin? Let's run the math. We are stripping away the corporate fluff to see exactly what that salary buys you in the state capital.

---

The Verification Test ($100,000 Analysis)

The "Sticker Price" of your salary is a vanity metric. The only number that matters is the direct deposit hitting your bank account.

Here is the brutal extraction breakdown for a single filer in Madison for the 2026 tax cycle:

• Gross Salary: $100,000
• Federal Tax: -$13,614 (Progressive bracket extraction)
• FICA Tax: -$7,650 (Non-negotiable Social Security & Medicare)
• State Tax (WI): -$4,500
• Local Tax: $0

The Reality Check:
The gap between the sticker price and your actual purchasing power is $25,764. That is the cost of doing business in the United States. Your gross is $8,333/mo, but your reality is $6,186/mo.

While that 25% tax hit stings, Wisconsin is a "high-tax" state only if you look at sales and property tax. Compared to the income tax obliteration seen in California or New York, the damage here is manageable.

---

Smart Budget Breakdown (50/30/20 Rule)

With a monthly net of $6,186, we apply the Warren Buffett-style 50/30/20 framework. This isn't a suggestion; it's a survival guide to avoid lifestyle creep.

1. Needs ($3,093/mo)

This is your "Keep the Lights On" fund. In Madison, this number is tight but viable.

• The Rent Reality: The median rent for a one-bedroom in desirable neighborhoods (Willy St, Atwood, Downtown) hovers between $1,400 and $1,700.
• The Math: If you secure a unit for $1,600, you have $1,493 left for utilities ($150), car insurance ($150), groceries ($500), and health insurance premiums ($300).
• Verdict: You can live comfortably on this budget, but you cannot be wasteful. You are priced out of buying a home on this single salary without a massive down payment, as property taxes in Dane County will crush the "Needs" budget.

2. Wants ($1,856/mo)

This is your "Fun Fund." Madison is a premium city for nightlife, craft beer, and dining.

• The Capitalize Wisconsin Factor: You have roughly $60/day to spend on discretionary items. This covers the State Street bar scene, concert tickets at The Sylvee, and Packers gear.
• Verdict: You are flush with cash here. You can drive a nice car and eat out three times a week without sweating.

3. Savings ($1,237/mo)

This is the "Wealth Creation" engine.

• The Power: $1,237/month is $14,844 per year.
• The Strategy: If you contribute to a 401(k) up to the employer match (usually 3-6%), this $1,237 should go into a Roth IRA ($6,500 limit) and the rest into a high-yield savings account or taxable brokerage.
• Verdict: This is a solid savings rate for a single earner. It is enough to build a safety net and invest for the future, provided you don't let your "Wants" budget bleed into it.

---

Madison Taxes vs The Competition

To understand Madison's value, you have to compare it to the heavy hitters.

Madison, WI vs. Austin, TX:
Austin offers 0% State Income Tax. On a $100k salary, Austin keeps an extra $4,500 in your pocket annually.

• However: Austin rents have historically been 20-30% higher than Madison. That tax savings evaporates immediately into a landlord's pocket.

Madison, WI vs. New York City, NY:
NYC has a "Jock Tax" for athletes and a massive city tax on top of state tax.

• The Math: On $100k, NYC would take roughly $31,000 in taxes (Fed + FICA + State + City).
• Result: Madison saves you roughly $580 per month compared to NYC. You pay for the privilege of NYC existence; you get paid to live in Madison.

---

Frequently Asked Questions (FAQ)

What is the income tax rate in Madison?

Madison residents pay a Federal tax (marginal rates 10%-37%), FICA (7.65%), and Wisconsin State tax. The effective Wisconsin tax rate for a $100k earner is roughly 4.5%. There is no separate "City Income Tax."

Is $100k a good salary in Madison?

Yes. It is significantly above the national median and provides a comfortable life in Madison. You are in the top 25% of individual earners in the city. You can afford a modern apartment, participate in the city's vibrant social scene, and still save over $14k a year.

Does Madison have a local city tax?

No. Unlike cities in Pennsylvania or Ohio, Madison, WI does not levy a local income tax on residents. Your paycheck deduction stops at the state line.

---

Methodology & Sources:
Calculations based on IRS 2026 Tax Brackets (Standard Deduction applied), Social Security Administration FICA rates, and Wisconsin Department of Revenue 2026 tax tables. Cost of living data cross-referenced with Bureau of Labor Statistics (BLS) CPI-U and Zillow Observed Rent Index.