The $100,000 Salary Analysis for Sheridan

This analysis treats a $100,000 salary as what it is: a gross figure subject to immediate reductions. We focus on "Purchasing Power"—what you can actually buy with the money—rather than the nominal number. All figures are annual estimates.

1. The Verification Test

A $100,000 salary does not result in $100,000 in your bank account. The government takes its share before you see a dime.

• Gross Salary: $100,000
• Federal Income Tax: ~$13,963 (Single Filer, Standard Deduction)
• FICA (Social Security & Medicare): ~$7,650
• Wyoming State Income Tax: $0 (WY has no state income tax)
• Estimated Net Pay (Take-Home): $78,387

Monthly Net Pay: ~$6,532

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

Based on a monthly net pay of $6,532, here is how the 50/30/20 rule (Needs/Wants/Savings) applies in Sheridan.

• Needs (50% - $3,266/mo)

  • Rent (1BR): $876 (13% of net pay)
  • Utilities/Heating: ~$250 (Sheridan winters are harsh; heating costs spike)
  • Groceries: ~$400
  • Car Payment/Gas: ~$600
  • Insurance/Phone: ~$300
  • Total Needs: $2,426
  • Remaining "Needs" Buffer: $840 (For maintenance, health copays, etc.)

• Wants (30% - $1,960/mo)

  • Discretionary spending. This is where you eat out, travel, or buy gear. You have a healthy surplus here compared to the rent cost.

• Savings (20% - $1,306/mo)

  • Retirement contributions, emergency fund, or investments.

Analysis: The rent-to-income ratio is exceptionally low (13%). In high-cost cities, rent consumes 40-50% of net pay. In Sheridan, a $100k salary allows for significant savings and discretionary spending.

3. Sheridan Tax Context

Wyoming is a "Zero Income Tax" state. This is the single biggest financial advantage of living here.

• Vs. High-Tax (California/NY): In CA, a $100k salary nets you roughly $72,000 (losing $6k+ more to state tax). You would need to earn $108,000 in CA to match Sheridan's $78,387 net pay.
• Vs. Low-Tax (Texas/Florida): TX and FL also have $0 state income tax. The financial difference is purely cost of living. Rents in major TX/FL metros are often double Sheridan's rates.

4. FAQ

"Is $100k good here?"
Yes. It is a high income relative to the local cost of living. While $100k is often cited as the "new middle class" nationally, in Sheridan it buys you a lifestyle that would require $140,000+ in Denver or Salt Lake City.

"Local income tax?"
None. Wyoming does not have state income tax. Some specific local districts may have optional sales taxes (0-2%), but there is no payroll deduction for local income.