$100k in Memphis
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📊 Memphis Salary Guide
Memphis Salary Guide: The Real Take-Home on $100k
You see a $100,000 salary offer. In Memphis, that number is a head-fake. The "sticker price" is irrelevant; the "net price" is what buys the house, the car, and the bourbon.
This guide breaks down the raw financial reality of a six-figure income in the Home of the Blues, analyzing the tax drag, the 50/30/20 purchasing power, and how Memphis stacks up against tax-heavy competitors.
The Verification Test ($100,000 Analysis)
Let’s run the verification test. We take the gross salary and strip away the mandatory government extraction to find the Take Home Pay.
- Gross Salary: $100,000
- Federal Tax: -$13,614
- FICA Tax: -$7,650
- State Tax (TN): $0
- Local Tax: $0
- Total Tax Drag: $21,264 (21.26%)
- Net Take Home Pay: $78,736 ($6,561 / month)
The Analysis
The "sticker price" is $100k, but the "purchasing power price" is $78,736.
The critical variable here is the State Tax. You are saving roughly $6,000–$8,000 annually compared to residents in income-tax states (like Illinois or New York). That $0 state tax bill is the silent partner in your budget, effectively padding your take-home pay by hundreds of dollars a month that others send to Nashville or Albany.
Smart Budget Breakdown (50/30/20 Rule)
With a monthly net of $6,561, the 50/30/20 rule provides the guardrails for wealth building.
Needs: $3,281/month (50%)
This bucket covers the essentials: Rent, utilities, insurance, and groceries.
- The Rent Reality: The median rent for a one-bedroom in desirable areas like Midtown or East Memphis hovers between $1,300 and $1,700.
- Purchasing Power: After rent ($1,500), utilities ($200), and insurance ($200), you have roughly $1,300 left for groceries and transportation.
- Verdict: You are comfortable, not scraping by. You can afford a decent apartment without roommates, but luxury living (downtown high-rises) will consume 60%+ of this bucket, forcing cuts elsewhere.
Wants: $1,968/month (30%)
This is your discretionary spending. Dining out in the South is cheaper than the national average.
- Leverage: $1,968 goes a long way in Memphis. You can hit the Overton Square restaurants, maintain a decent bar tab, and catch Grizzlies games without tapping into the "Needs" bucket.
Savings: $1,312/month (20%)
- Wealth Creation: This is the "Memphis Multiplier." Because housing and tax burdens are lower, that $1,312 is pure capital accumulation.
- Strategy: With $15,744 going to savings annually, you are maxing out a Roth IRA with room left for a brokerage account or extra mortgage principal. This is where the "good" salary becomes "great" wealth.
Memphis Taxes vs. The Competition
Memphis is a tax anomaly. While the sales tax is high (near 10%), the income tax is the differentiator.
| Metric | Memphis, TN | New York City, NY | Austin, TX |
|---|---|---|---|
| State Income Tax | 0% | ~4% - ~6% | 0% |
| Local/City Tax | 0% | ~3.8% - ~4.5% | 0% |
| Total Income Tax | 0% | ~8.8% | 0% |
| Take Home ($100k) | $78,736 | ~$71,000 | $78,736 |
The Verdict:
- Vs. New York: Memphis keeps your wallet safe. You take home roughly $7,700 more annually than a New Yorker earning the same salary. That is a used car, or a massive boost to your 401k.
- Vs. Austin: It is a tie on taxes. However, Austin has experienced massive rent inflation. While the tax bill is the same, your $3,281 "Needs" bucket buys significantly less square footage in Austin than it does in Memphis.
Frequently Asked Questions (FAQ)
Q: What is the income tax rate in Memphis?
A: Zero. Memphis residents pay 0% state income tax and 0% local city income tax. Your primary tax burden consists of Federal tax and FICA (Social Security/Medicare).
Q: Is $100k a good salary in Memphis?
A: Yes. With a take-home pay of $78,736 ($6,561/month), you are earning well above the median household income for the city. This salary allows for comfortable housing, significant savings, and a high degree of disposable income relative to the cost of living.
Q: Does Memphis have a local city tax?
A: No. There is no "Memphis city tax" on wages. This distinguishes it from cities like Philadelphia or St. Louis, which levy local wage taxes.
- Methodology: Calculations based on 2026 IRS tax brackets (Single Filer, Standard Deduction), 2026 FICA rates, and Tennessee State Comptroller data regarding local tax jurisdictions.
- Sources: IRS.gov, Bureau of Labor Statistics (BLS) Consumer Expenditure Survey, U.S. Census Bureau (ACS).