The $100,000 Salary Analysis for O'Fallon, MO

This guide treats a $100,000 salary as raw data, not a lifestyle promise. O'Fallon is part of the St. Louis metro area, where costs are moderate but taxes eat into the paycheck. We focus on "Purchasing Power"—what you can actually buy with your money after the government takes its share—versus the "Nominal Salary" of $100,000. All figures are estimates based on 2023-2024 tax brackets and local data; consult a CPA for your exact situation.

1. The Verification Test

First, strip the salary down to net pay. A $100,000 gross salary means $8,333/month before deductions. Taxes are the biggest hit—federal progressive, FICA flat, and Missouri's progressive system (rates range from 0% to 4.95%, similar to Illinois' flat but with brackets).

• Federal Income Tax: ~$14,000 (assuming single filer, standard deduction; effective rate ~14% post-deduction).
• FICA (Social Security + Medicare): ~$7,650 (7.65% flat on all earnings up to Social Security cap).
• Missouri State Income Tax: ~$4,800 (estimated effective rate ~4.8% for this bracket; Missouri has deductions but is not zero-tax like Texas/Florida).
• Total Taxes: ~$26,450.
• Estimated Net Pay (Annual): ~$73,550 (or $6,129/month).

This is your Purchasing Power baseline. Nominal salary is irrelevant if taxes and costs consume it.

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

Apply the 50/30/20 rule to net pay: 50% on Needs, 30% on Wants, 20% on Savings. For O'Fallon, this assumes a single person or couple without kids; adjust for family size. Local rent data: A 1-bedroom apartment averages $1,100-$1,300/month (per Zillow/ApartmentList 2024; lower than St. Louis city but rising).

• Needs (50% = $3,065/month):

  • Rent (1BR): $1,200 (mid-range estimate).
  • Utilities (electric, gas, water, internet): $250 (O'Fallon's suburban climate adds heating/cooling costs).
  • Groceries: $400.
  • Transportation (gas/public transit): $200.
  • Health Insurance (if not employer-paid): $300.
  • Remaining for basics: $715 (covers insurance, minimal debt payments). Buffer is tight; emergencies disrupt this.

• Wants (30% = $1,839/month):

  • Dining, entertainment, subscriptions, hobbies, travel: $1,839. In O'Fallon, this goes further than in major metros—think local chains over pricey urban spots—but it's not "lavish." Skip this if debt or savings goals loom.

• Savings (20% = $1,226/month):

  • Emergency fund, retirement (e.g., 401k match), investments: $1,226. At this rate, building a $50,000 down payment takes ~3 years. Compounding helps, but inflation erodes it.

This budget assumes no major debts (e.g., student loans, car payments). If you have them, Needs balloon, and Savings vanish.

3. O'Fallon Tax Context

Missouri sits in the middle: Not a tax haven like Texas (0% state income tax, no inheritance tax) or Florida (0% income, but property taxes can bite). Effective state rate here is 4-5% vs. 0% in those states, meaning on $100k, you lose $4,000-5,000 more than in TX/FL—equivalent to a month's rent. Compared to high-tax California (effective ~6-9% state + local) or New York (up to 10%+), Missouri saves you $5,000-8,000 annually, but O'Fallon's property taxes (1.2% effective) are higher than TX averages, offsetting some gains if you buy. Overall, O'Fallon's total tax burden (income + property) is ~15-20% of gross—better than coasts, worse than Gulf states.

4. FAQ

• Is $100k good here?
  It's solid but not exceptional. It puts you above median household income (~$85,000 in St. Charles County), allowing comfortable living if single or dual-income. However, with net ~$73,550, rising rents ($1,300+ for 1BR) and healthcare costs mean it's "middle-class stability," not wealth. Inflation-adjusted, it's less than $100k from 2019. If you're comparing to low-cost rural areas, it's great; vs. urban hubs, it's average.

• Local income tax?
  O'Fallon (city) has no local income tax. Only federal and Missouri state apply. However, watch for sales tax (total ~8.5-9.5% in St. Charles County) and potential future city levies if budgets tighten. No wage tax like in some Ohio cities.