Cost of Living · 2026
Cost of Living Salary Calculator
Find out exactly what salary you need in a new city to match your current lifestyle — factoring in both the cost of living index and state income tax differences. Most calculators only do one. This one does both.
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How to use this calculator
- 1 Enter your current annual salary — gross, before taxes.
- 2 Select your current state and destination state — tax rates and city price levels are filled in automatically.
- 3 Optionally adjust the price level fields for your specific cities. The state defaults are broad averages — if you know your city is significantly cheaper or pricier than average, nudge the number up or down. (Precise figures available at coli.org.)
- 4 Your equivalent salary — broken down by price level and tax differences — appears instantly, along with a side-by-side bar chart.
How we calculate this
Most cost of living calculators stop at the price index. We go one step further and account for the state income tax difference — because moving to a higher-tax state means you need more gross salary just to keep the same after-tax purchasing power.
Two-Step Calculation
Step 1 — Price level adjustment
Current salary × (Dest. price level ÷ Origin price level)
Step 2 — Tax adjustment
× (1 − origin rate) ÷ (1 − dest. rate)
Combined rate includes
Federal 22% + FICA 7.65% + state rate
The price level index is set from the Council for Community and Economic Research (C2ER) state averages. The national average is 100 — a value of 142 means that location is 42% more expensive than the US average. The state defaults are broad; override with your specific city for a sharper result.
The tax adjustment isolates only the state income tax delta — federal tax and FICA are the same in every state and cancel out of the formula. Results are estimates for planning purposes.
State Tax Impact on a $75,000 Salary
| State | State Tax Rate | Annual State Tax |
|---|---|---|
| Texas / Florida / Washington | 0% | $0 |
| Indiana | 3.05% | ~$2,288 |
| Michigan | 4.25% | ~$3,188 |
| Georgia | 5.49% | ~$4,118 |
| New York | 6.33% | ~$4,748 |
| California | 6.00% | ~$4,500 |
| Oregon | 8.75% | ~$6,563 |
| Washington D.C. | 8.50% | ~$6,375 |
What this calculator doesn’t include
For a planning estimate, this is thorough — but here’s what could shift your real number:
City-level COL variation — costs in San Francisco are dramatically higher than the California state average; always override the COL index with your specific city
Local and city income taxes — New York City, Philadelphia, and others add their own rate on top of state tax, which this calculator doesn’t include
Property taxes — vary enormously by city and county, and are a significant cost for homeowners not captured in the COL index alone
Sales tax differences — some states charge 0%, others up to 10%+; on a typical household’s spending this can add $1,000–$3,000/year
Employer benefits value — if your new job offer includes better or worse health insurance, 401(k) matching, or PTO, the true compensation comparison changes
Career growth and salary trajectory — a lower-paying offer in a high-cost city may still be the right move if it accelerates your earning potential
Frequently asked questions
Based on state-level averages, you’d need roughly $110,000–$120,000 in California to match $75,000 in Texas. California’s COL index is approximately 142 versus Texas at 93 — a 53% price difference. On top of that, California’s 6% state income tax versus Texas’s 0% adds another $4,500–$7,000 in annual taxes depending on your bracket. The exact number depends heavily on which California city you’re moving to — San Francisco and San Jose are dramatically more expensive than Fresno or Bakersfield. Use the COL index override to enter your specific city’s number for a more precise figure.
A cost of living index measures the relative price of a standard basket of goods and services — housing, groceries, utilities, transportation, and healthcare — in a given location versus the national average. The national average is set at 100. An index of 120 means that location is 20% more expensive than average; an index of 85 means 15% cheaper. The most widely cited US source is the Council for Community and Economic Research (C2ER), which has published quarterly COL data since 1968. This calculator uses C2ER-based state averages as defaults, which you can override with city-level figures for a more precise result.
Because what matters for your standard of living is your after-tax purchasing power, not your gross salary. If you move from a no-income-tax state like Texas to a state with a 6% rate like California, you lose roughly $4,500/year on a $75,000 salary before a single price difference is factored in. Most cost of living calculators only adjust for the price index and ignore this entirely — which means they systematically understate the true salary you need when moving to higher-tax states, and overstate it when moving to lower-tax states. This calculator accounts for both.
Yes — and this calculator gives you the data to do it with confidence. If a company offers you the same salary in San Francisco that you earned in Austin, you’re effectively taking a significant pay cut once COL and tax differences are factored in. Come to the negotiation with a specific equivalent salary figure, explain the COL index difference, and cite the state tax gap separately — employers who understand compensation will respond to concrete numbers better than general requests for more money. A well-prepared candidate who quantifies the ask is taken more seriously than one who simply says the offer feels low.
The state tax math is precise — 2026 rates, correctly applied. The COL index defaults are reliable for state-level comparisons but will be less accurate for specific cities, particularly in large states with wide internal variation (California, Texas, New York). For the sharpest result, override the COL index fields with city-specific data from coli.org or a similar source. The federal tax rate uses a flat 22% approximation, which is accurate for mid-range incomes and appropriate for a planning estimate. For a decision of this magnitude, treat this calculator as a strong starting point and validate with a financial advisor if you’re negotiating a significant salary change.