Sioux City, IA Salary Guide: The Real Value of a $100k Paycheck

You see a $100,000 salary offer. In the financial press, that number is a benchmark for middle-class stability. But in Sioux City, Iowa, that $100,000 isn't just a number—it's a specific purchasing power. This guide breaks down the math, the tax drag, and exactly how far your money goes in the Midwest's hidden economic engine.

The Verification Test ($100,000 Analysis)

The "sticker price" of your labor is $100,000. The "real price" is what hits your bank account. In Sioux City, the gap is significant, but manageable compared to high-tax coastal hubs.

• Gross Income: $100,000
• Total Deductions: $25,764
• Net Take-Home Pay: $74,236

The Analysis:
You are losing 25.7% of your gross income to taxes immediately. Here is the damage breakdown:

1. Federal Tax: $13,614 (The heavy hitter).
2. FICA Tax: $7,650 (Non-negotiable for Social Security/Medicare).
3. Iowa State Tax: $4,500 (A moderate hit, but significantly lower than states like California or New York).

The Verdict: While you don't keep the full $100k, you are keeping $74,236. In a state with no local city tax, this is a clean, efficient extraction.

Smart Budget Breakdown (50/30/20 Rule)

With a monthly net of $6,186, you have the liquidity to build wealth aggressively if you stick to the 50/30/20 rule.

Needs: $3,093 / Month

Can you afford rent? Absolutely.
In Sioux City, the median rent for a 1-bedroom apartment hovers between $850 and $1,100. Even at the luxury end ($1,400), you are spending less than 25% of your net income on housing. This leaves over $1,600 for utilities, groceries, insurance, and gas. You are not "rent-burdened."

Wants: $1,856 / Month

This is your discretionary income. In Sioux City, $1,856 goes a very long way. This budget covers dining out at the Ho-Chunk Centre, entertainment, and premium subscriptions. You can live a "big city" lifestyle without the big city price tag.

Savings: $1,237 / Month

This is where the Sioux City advantage compounds.
Saving $1,237 monthly puts you on a path to maxing out a Roth IRA ($6,000/yr) and building a substantial brokerage portfolio. While a $100k earner in Austin or NYC might spend this entire amount on rent alone, you are using it to generate assets.

Sioux City Taxes vs. The Competition

To understand the value of Sioux City, you must compare the tax drag to the competition.

• Sioux City, IA: 25.7% total tax drag on a $100k salary.
• New York City, NY: ~35% - 37% total drag (Federal + FICA + NY State + NYC Local Tax).
• Austin, TX: ~28% - 30% total drag (Federal + FICA + No State Tax, but high property taxes).

The Takeaway:
Sioux City isn't just "cheaper" because rent is lower; it's cheaper because the government takes less of your slice. In NYC, a $100k salary nets you roughly $63,000. In Sioux City, it nets you $74,236. That is an $11,000+ annual difference in purchasing power.

Frequently Asked Questions (FAQ)

Q: What is the income tax rate in Sioux City?
A: Sioux City residents pay Federal tax, FICA (7.65%), and Iowa State income tax. For a $100,000 earner, the effective state tax rate is approximately 4.5% ($4,500). There is no local city income tax.

Q: Is $100k a good salary in Sioux City?
A: Yes. With a take-home pay of $74,236, you earn nearly double the median household income of the area. This salary affords you a luxury apartment, a financed vehicle, aggressive savings, and significant disposable income.

Q: Does Sioux City have a local city tax?
A: No. Based on the data provided, the local tax burden is $0. This keeps your total tax liability significantly lower than in cities with local wage taxes (like Philadelphia or St. Louis).

Methodology: Calculations based on IRS 2026 Tax Brackets (Standard Deduction), FICA rates, and Iowa State Comptroller data. Salary benchmarks derived from Bureau of Labor Statistics (BLS) regional wage data. All figures are estimates for single filers.