Billion Rupiah Salary Becomes Boncos If You Live in These 7 Cities

Dream - Every country has different living cost standards depending on its economic conditions. Those who are billionaires in one city may only live as millionaires when they move to another area. 

This is evident from the condition of 7 percent of the population in the United States (US) who earn US$250,000 or more. When converted to rupiah, that income is equivalent to Rp3.7 billion.

Although it reaches billions of rupiah in value, the income, which is considered high by Indonesian standards, is actually categorized as small in some cities in the Uncle Sam's Country.

According to CNBC International, the average income of Americans worth US$250,000 is only valued at US$203,664 in Memphis, Tennessee. However, that figure will drastically decrease when the owner of the money lives in New York City. 

With a value of a quarter of a million US dollars, it turns out that the average income of 7 percent of the Uncle Sam's Country's population is only worth US$83,000 in New York City.

Calculating Income

The difference in value of that income is closely related to the purchasing power of US citizens, which depends on the overall city economy, taxes, and cost of living. 

According to a SmartAsset report, which conducted a study on high-income people who lose the most taxes and cost of living.

The study compares after-tax income in the 76 largest cities in the US and adjusts the figures with the cost of living.

Data is compiled using the SmartAsset salary calculator, which calculates take-home pay after considering local, state, and federal taxes. Cost of living includes housing, food, utilities, transportation, and other goods and services.

Most Drained for Taxes

The study found that someone earning US$250,000 is only worth US$82,421 in New York due to high cost of living. According to data from RentHop, the average monthly rent for a studio apartment in New York reaches US$3,500.

Similarly, in the capital of the United States, Washington D.C., which ranks 6th among the most expensive cities in the US. A US$250,000 income is equivalent to US$101,865.

Some cities also have high cost of living, causing the value of US$250,000 to decrease due to high state income taxes, such as San Francisco.

In that city, taxes for a US$250,000 salary will be higher compared to a US$100,000 salary.

Living Costs in New York Make Boncos

The cost of living in San Francisco is also 82.8 percent higher than the national average. The same goes for Long Beach, California, where professionals are taxed 38 percent, with a cost of living 52.5 percent higher than the national average.

Here are 7 cities where a US$250,000 income becomes more boncos:

7. San Diego: US$250,000 is equivalent to US$105,151

6. Washington, D.C.: US$250,000 is equivalent to US$101,865

5. Long Beach, California: US$250,000 is equivalent to US$101,635

4. Los Angeles: US$250,000 is equivalent to US$101,635

3. San Francisco: US$250,000 is equivalent to US$82,776

2. Honolulu: US$250,000 is equivalent to US$82,672

1. New York: US$250,000 is equivalent to US$82,421