Is $100k a Good Salary in San Francisco?

San Francisco’s high cost of living often prompts questions about what constitutes a “good” salary. A salary’s adequacy is not universal, as it is shaped by individual financial commitments, lifestyle, and priorities. This analysis explores the financial realities of earning $100,000 annually in San Francisco, detailing typical expenses and resulting disposable income.

Understanding San Francisco’s Cost of Living

San Francisco’s financial landscape is primarily driven by elevated housing costs that significantly surpass national averages. For a single person, studio apartments typically cost $2,274 to $2,368 per month, one-bedrooms $3,024 to $3,500, and two-bedrooms average $3,703 to $4,970. These figures fluctuate by neighborhood, with some areas like Tenderloin offering lower rents and others like Presidio or Mission Bay being more expensive.

Beyond housing, transportation expenses also contribute significantly to the overall cost of living. Public transit options like Muni and BART offer monthly passes for adults, costing about $86 for Muni-only or $104 for Muni and BART. For personal vehicles, costs are higher due to parking ($200-$400/month), gas, insurance, and maintenance. The average annual cost of car ownership in California is approximately $14,390, or about $1,199 per month.

Food expenses are elevated compared to the national average. A single person might spend $400 to $600 monthly on groceries. Dining out frequently adds substantially, with a simple meal costing around $25, and a mid-range dining experience for two often exceeding $120.

Utilities (electricity, heating, cooling, water, garbage) typically amount to $227 to $255 per month. Internet adds $64 to $68 monthly, and mobile phone plans are $54 to $65. Healthcare costs are also higher than the national average, with out-of-pocket expenses even for those with insurance.

Budgeting with a $100,000 Salary

A gross annual salary of $100,000 in San Francisco undergoes significant deductions before becoming take-home pay. Primary deductions include federal and state income taxes, and FICA taxes (Social Security and Medicare). For a single filer, federal income tax on $100,000 (after the $14,600 standard deduction) is approximately $13,614 for 2024. California state income tax is estimated at $5,842.

FICA taxes, which fund Social Security and Medicare, comprise 7.65% of gross wages. On a $100,000 salary, this amounts to $7,650. California State Disability Insurance (SDI) is also withheld, approximately $1,100. Factoring these deductions, a $100,000 gross salary results in a net annual income of roughly $70,041, or about $5,837 per month.

Allocating this net monthly income of $5,837 requires careful planning in San Francisco. If $3,000 to $3,500 is allocated to rent for a one-bedroom apartment, a substantial part of the income is consumed. This leaves $2,337 to $2,837 for other expenses, including food, transportation, utilities, and discretionary spending.

Groceries could range from $400 to $600, while utilities and internet might total $300 to $320. Public transportation might cost around $100 per month. These essential expenses quickly reduce remaining funds, making it challenging to save for retirement, build an emergency fund, or pay down existing debts.

Factors Influencing Your Financial Reality

Financial comfort from a $100,000 salary in San Francisco is heavily influenced by individual circumstances and choices. Household composition plays a significant role; living with a partner or roommates can drastically reduce per-person housing costs. Splitting rent, utilities, and groceries alleviates financial pressure, making a $100,000 salary feel more substantial.

Lifestyle choices also impact financial reality. Cooking meals at home rather than dining out can save a significant amount, given high restaurant costs. Opting for public transportation, walking, or cycling instead of car ownership also leads to substantial savings by avoiding parking fees, high gas prices, and insurance. Personal spending on entertainment, shopping, and other discretionary categories directly affects income available for savings or financial goals.

Existing debt obligations, such as student loans or credit card debt, reduce disposable income. This makes it harder to achieve financial milestones like saving for a home down payment or building a robust investment portfolio. Debts necessitate a larger portion of net income for repayments, leaving less for other expenditures or savings.

Conversely, a comprehensive benefits package from an employer, including robust health insurance, retirement plan matching contributions, or commuter benefits, can add considerable value beyond the base salary, enhancing overall financial well-being without directly increasing the take-home pay. These benefits effectively reduce out-of-pocket expenses or boost long-term savings, providing a more comfortable financial position.