Methodology

salary.city combines public government datasets with clearly labeled assumptions and projections. Here's what each result can and cannot claim.

Data Sources

DatasetSourceUpdate Cycle
Occupation WagesBureau of Labor Statistics — Occupational Employment and Wage Statistics (OEWS)Annual (May release)
Tech Offers (H-1B)U.S. Department of Labor — OFLC LCA DisclosuresAnnual
Cost of LivingBureau of Economic Analysis — Regional Price Parities (RPP)Annual
Housing (Rent)U.S. Department of Housing & Urban Development (HUD FMR)Annual (FY2026 where imported)
Tax RatesIRS.gov + State Revenue DepartmentsFederal/FICA profile: 2026; state layer remains simplified

Purchasing Power Index

Our Purchasing Power score answers: "How far does this salary go in this city compared to the national average?"

FORMULA:
Purchasing Power = (Projected Salary / Cost-of-Living Index) x 100

A score of 100 means the scenario is estimated at national-average purchasing power. Above 100 = your dollar goes further. Below 100 = the local cost of living eats into your earnings.

Tax Calculation

We estimate after-tax income using:

  • Federal income tax — 2026 marginal tax schedules with Single, Married Filing Jointly, and Head of Household profiles.
  • FICA (Social Security & Medicare) — 2026 Social Security wage base and status-specific Additional Medicare thresholds.
  • State income tax — simplified state-by-state computations with explicit fallback behavior where detailed rules are not modeled.

Housing Affordability

We calculate two key housing metrics:

HUD 1B Fair Market Rent

We use HUD 1-bedroom Fair Market Rent where imported. HUD FMR is a 40th percentile gross rent benchmark, not a median rent series.

Mtg Simulation

Homeownership is simulated using a 20% down payment, prevailing fixed rates, and a 30-year term on the metro's median home price.

Limitations

  • BLS OEWS data is published annually and may lag current market conditions; inflation indexing is a projection, not an observed wage update.
  • Tax models now support Single, Married Filing Jointly, and Head of Household federal profiles. Credits, itemized deductions, dependents, and local taxes can materially change net outcomes.
  • Cost of living indices and HUD FMR reflect metro-level or rent-area benchmarks, masking neighborhood-specific premiums.
Data vintage: BLS OEWS May 2024 · HUD FMR FY2026 where imported · Federal/FICA tax profile 2026 · Last methodology update: April 2026