Round Rock, TX Salary Guide: The Real Value of a $100,000 Income

You see the headline number: $100,000. It feels comfortable. It feels secure. But in the financial world, the "sticker price" of your salary is an illusion. It is nothing more than the starting line for a tax gauntlet that decimates your purchasing power.

This guide strips away the fluff. We are analyzing the raw data to determine what a six-figure salary actually puts in your pocket—and whether it buys you a lifestyle of freedom or a cycle of paycheck-to-paycheck stress in Round Rock.

---

The Verification Test ($100,000 Analysis)

Before you calculate a mortgage payment or apartment rent, you must pass the Verification Test. This is where we take the gross salary and run it through the meat grinder of government withholdings to find the Net Effective Rate.

The Gross vs. Net Reality:

• Sticker Price: $100,000
• Federal Tax: -$13,614
• FICA Tax: -$7,650
• State Tax: $0
• Local Tax: $0
• Total Deductions: -$21,264

The Verdict:
Your Take Home Pay is $78,736.

The "Texas Advantage"

This is where the analysis gets interesting. In a high-tax state like New York or California, a $100k salary could see effective tax rates pushing 35-40%. Texas, however, aggressively subsidizes your paycheck by eliminating the State Income Tax entirely.

By avoiding the state tax burden, you are retaining $7,650 more of your labor annually compared to a resident in a high-tax jurisdiction. That is not just a number; it is an extra $637.50 per month in your pocket purely due to geographic arbitrage.

---

Smart Budget Breakdown (50/30/20 Rule)

With a monthly net income of $6,561, the 50/30/20 rule provides a rigid framework for wealth building. Here is how that capital deployment looks in Round Rock.

1. Needs: $3,281 (50%)

The Survival Bucket

This category covers the essentials: Rent, utilities, groceries, and insurance.
Can you afford rent?
In Round Rock, the median rent for a one-bedroom apartment hovers between $1,300 and $1,600. If you allocate $1,500 to housing (including utilities), you are utilizing roughly 46% of your "Needs" budget.

This leaves you with roughly $1,781 for food, transportation, and insurance. This is a solid buffer. You are not "house poor." You have enough liquidity to cover a car note and still eat well, provided you avoid luxury vehicle financing.

2. Wants: $1,968 (30%)

The Lifestyle Bucket

This is your discretionary spending. Dining out at Round Rock’s famous Chisholm Trail, entertainment, and subscriptions.
The Trap: The "Wants" category is deceptive. If you blow $800 on a car lease, you have just crippled your Savings bucket. Keep fixed costs low here to maximize the next category.

3. Savings: $1,312 (20%)

The Wealth Creation Bucket

This is the most important number on this page. $1,312 per month.
If you invest this monthly amount into a standard S&P 500 index fund (assuming a conservative 7% annual return), you will accumulate over $180,000 in 8 years without a single raise.

• Round Rock Context: This savings rate allows you to build a down payment for a home in the Williamson County real estate market at a pace that outstrips local appreciation, keeping you in the game.

---

Round Rock Taxes vs The Competition

To understand the value of Round Rock, you must compare it to its high-tax peers. We are looking at the Annual Tax Burden on a $100,000 salary.

• Round Rock, TX:

  • State Tax: $0
  • Total Annual Tax Load: $21,264
  • Result: You keep $78,736.

• Austin, TX (The Local Competitor):

  • State Tax: $0
  • Note: Austin has higher property taxes than Round Rock, but on a rental basis, the income tax advantage remains identical. The difference here is Cost of Living, not tax load.

• New York City, NY (The High-Tax Benchmark):

  • State Tax: ~$5,000
  • City Tax: ~$1,800
  • Result: You lose roughly $6,800 more annually to taxes than a Round Rock resident.
  • The Shift: That $6,800 difference is an entire month of "Wants" spending, or a massive boost to your savings.

The Analysis: Round Rock offers the high-tech salary potential of Austin with a tax structure that mimics Florida or Nevada. The lack of state income tax is the single biggest lever on your net worth.

---

Frequently Asked Questions (FAQ)

Q: What is the income tax rate in Round Rock?

A: Round Rock has a 0% State Income Tax and a 0% Local Income Tax. The only income taxes deducted from your paycheck are Federal Income Tax and FICA (Social Security and Medicare), which apply regardless of location.

Q: Is $100,000 a good salary in Round Rock?

A: Yes. A take-home pay of $6,561/month is well above the area's median household income. It allows for a comfortable apartment, significant savings ($1,312/mo), and discretionary spending without financial anxiety, provided you manage housing and vehicle costs wisely.

Q: Does Round Rock have a local city tax?

A: No. Residents of Round Rock do not pay a municipal income tax.

---

• Methodology: Calculations based on 2026 IRS Tax Tables (Standard Deduction for Single Filer), 2026 FICA rates, and Texas State Comptroller data.
• Sources: Internal Revenue Service (IRS), Bureau of Labor Statistics (BLS), Texas Comptroller of Public Accounts.