Cost of Living · Updated June 2026
Local purchasing power index by city (US)
Local purchasing power asks the only question that matters financially: how much lifestyle does the average local paycheck buy in its own city? High salaries in expensive metros and modest salaries in cheap ones can land in the same place.
On 2026 data, tech-heavy metros (San Jose, Seattle, San Francisco) keep the top spots – their salary premium outruns even extreme housing costs – while lifestyle-famous cities like Miami rank surprisingly low: average pay never caught up with post-2020 rent.
Cost of living calculator
Equivalent salary
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- Rent share of pay A
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Composite 2026 index incl. centre rent (NYC = 100). Salary figures are gross – taxes not included; pair with the salary after tax calculator.
Key insights
Key insights
- Power ratio = average net salary ÷ single-person budget.
- Tech metros top the index despite the highest rents.
- Miami-style "lifestyle cities" often rank bottom-third.
- Remote earners should substitute their own net pay into the ratio.
- State tax is a first-class driver, not a rounding error.
| City | COL index | Single budget /mo | Avg net salary /mo | Power ratio |
|---|---|---|---|---|
| New York City | 100 | $5,759 | $7,200 | 1.25 |
| San Francisco | 93 | $4,954 | $8,200 | 1.66 |
| Austin | 63 | $2,825 | $6,000 | 2.12 |
| Chicago | 68 | $3,322 | $5,800 | 1.75 |
| Miami | 73 | $3,718 | $5,200 | 1.40 |
| London | 79 | $3,980 | $4,400 | 1.11 |
| Berlin | 56 | $2,526 | $3,300 | 1.31 |
| Lisbon | 50 | $2,126 | $1,700 | 0.80 |
How the index is built
For each city: average net (after-tax) salary ÷ all-in single-person monthly budget. A ratio of 2.0 means the average earner covers two months of living per month of work – i.e., a 50% theoretical savings rate.
The ratio deliberately uses net salary: state tax differences (0% in Seattle's Washington vs ~9% effective in California metros) are part of why purchasing power diverges from sticker salaries.
What movers should do with it
If you carry a remote salary, ignore the salary column and divide your own net pay by each city's budget – the cheapest viable city wins. If you'll take local pay, the power ratio is your shortlist filter before any offer exists.
Pair with the state tax pages: two cities with equal ratios can differ thousands per year in tax once your specific income replaces the average.
FAQ
Frequently asked questions
Which US city has the highest local purchasing power?
Among major metros in 2026, San Jose and Seattle lead: average net salaries of $8,400 and $7,300/month against budgets that, while high, don't fully consume the salary premium.
Why is purchasing power low in Miami?
Average net pay (~$5,200/month) sits near national norms while the single budget (~$3,718) prices like a coastal premium metro – the gap compresses local purchasing power.
Does the index include taxes?
Yes – salaries are after federal, state, and FICA taxes, which is why no-income-tax states get a visible boost.
How should remote workers read this?
Replace the salary column with your own net income and divide by each city's budget; your employer's location stops mattering, so the budget column alone decides.
How often does the ranking change?
Slowly at the top (salary premiums persist), quickly in the middle when rents spike – Sun Belt metros moved several places between 2022 and 2026 on rent alone.
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