It’s no surprise that money in California doesn’t go as far as it does in many other states. But a new report from ConsumerAffairs reveals the stark contrast in take-home pay for someone earning a six-figure salary here compared to other areas. 

Workers making a $100,000 salary in San Francisco and Oakland would have a purchasing power of just $62,371 after taxes and when adjusted for regional price parity, the worst on the list of U.S. cities. 

California’s state income tax is high, but it’s the cities’ RPP, which translates roughly to cost of living, that really brings down the salary. Goods and services are much more expensive in California, with housing and utilities making purchasing power plummet. Housing costs in San Francisco, for example, are double the national average, the report said. 

Article continues below this ad

FILE: Traffic moves along in downtown San Francisco. 

It’s no surprise San Francisco dominated the list, as it’s frequently cited as one of the most expensive cities in the world. Prices don’t look like they’ll be coming down anytime soon, either, as rent continues to skyrocket and home prices stay high amid low inventory and demand from AI workers. 

California cities made up the bulk of the top of the list where a $100,000 salary is most diluted, with eight cities in the bottom 10. Los Angeles, Long Beach, Santa Ana, Anaheim and Irvine tied for fourth-worst in the country, with a paycheck netting just $63,829. The Los Angeles-Long Beach-Anaheim metro area has a slightly lower RPP compared to SF, saving workers nearly $1,500.

A view of the coastline in Santa Barbara, Calif.

San Jose earners took home $65,299 and ranked sixth-worst. 

Article continues below this ad

Don't let Google decide who you trust.

New York City came in at No. 3 with $62,674 in take-home pay, and Honolulu came in at No. 5 with $65,204. 

Got a tip? Send us the scoop.

Got a tip? Send us the scoop.

Texas dominated the list of the highest adjusted post-tax salaries, with four Texas cities earning the most of a $100,000 paycheck. Texas lacks both state and local income taxes, allowing workers to avoid a huge chunk of their pay being deducted each earning period. In Laredo, Texas, workers would take home $89,864 of a $100,000 salary, the highest on the list. El Paso and Lubbock rounded out the top three. 

Article continues below this ad

Cities in Tennessee, Louisiana, Oklahoma, Kansas and Indiana made up the rest of the top 10. 

While the RPPs of California cities are high, the state’s cities aren’t the most tax-burdened. New York City has the highest combined state and local taxes, and Portland, Oregon, isn’t far behind, according to the report.

Central Coast | 'Doomsday fish': Once-in-a-lifetime sea creature encountered in Monterey BayTechnology| A Calif. teen trusted ChatGPT for drug advice. He died from an overdose.Central Coast| He gifted Calif. one of its largest city parks. Then he shot his wife.Culture | Tragedy cut Sublime's fame short. Now the singer's son has the mic.

Get SFGATE's top stories sent to your inbox by signing up for The Daily newsletter here.

© SFGate