Relocation guide
What salary do I need when I move?
This is the central question of any relocation decision, and the math is simpler than most resources suggest. The key is using the right price-level index — not median rent, not salary surveys.
Last updated June 26, 2026
What is the correct equivalent-salary formula?
The direct answer is to multiply your current salary by the destination-to-origin RPP ratio. The equivalent salary formula uses Regional Price Parities (RPP) from the Bureau of Economic Analysis:
Equivalent salary = current salary x (destination RPP / origin RPP)This tells you the income needed in City B to have the same real purchasing power as your current salary in City A.
Which source should I use for each part of the move?
Use BEA RPP for the broad place-to-place conversion, then layer on category checks where your household differs from the average.
| Question | Best source | How to use it |
|---|---|---|
| What salary keeps my same buying power? | BEA Regional Price Parities, accessed June 26, 2026 | Use the RPP ratio. BEA reports RPP as a percentage of the national average, where 100 is the U.S. average. |
| How much rent shock should I expect? | HUD Fair Market Rents, FY data tables, accessed June 26, 2026 | Compare bedroom-size FMRs in the origin and destination metro as a housing-specific check. |
| How do I adjust an old salary target for time? | BLS Consumer Price Index, accessed June 26, 2026 | Use CPI for inflation over time; do not use it as a metro-to-metro cost ratio. |
How do the worked examples behave?
Example 1: Moving to a more expensive city
You earn $90,000 in Denver (RPP 104) and are considering a job in Boston (RPP 117).
$90,000 x (117 / 104) = $101,250You need at least $101,250 in Boston just to break even. A $95,000 offer in Boston is actually a pay cut in real terms.
Example 2: Moving to a cheaper city
You earn $120,000 in Seattle (RPP 113) and are considering Nashville (RPP 92).
$120,000 x (92 / 113) = $97,700$97,700 in Nashville gives you the same purchasing power as $120,000 in Seattle. A $100,000 offer in Nashville is actually a slight real-wage increase.
Example 3: No-income-tax adjustment
Moving from California (13.3% top marginal rate) to Texas (0%). If your California salary is $130,000 and you are in the top bracket, your Texas equivalent needs only $113,000 or so in gross wages to achieve the same after-tax income — but you also need to factor in the overall RPP difference between your specific California and Texas metros.
What does the formula not capture?
- Property taxes. If you own a home, property tax rates vary enormously. Texas has high property taxes that partially offset the income-tax advantage.
- Healthcare costs. Employer-provided health insurance can vary significantly. RPP does capture out-of-pocket medical costs but not premium differences.
- Childcare. Childcare costs can differ by $500-$2,000 per month between metros and have an outsized impact on family budgets.
- Commute costs. Car ownership costs, transit passes, and parking are included in RPP, but only at average levels. If you are moving from a transit-friendly city to a car-dependent one, add real commuting costs.
Use the ReloMath calculator to run the equivalent salary formula instantly for any two verified U.S. metros.
How was this verified?
Last updated and verified June 26, 2026. Method: the formula was checked against BEA's RPP definition and then bounded with HUD FMR and BLS CPI as separate housing and time-series checks. ReloMath does not treat a housing-only rent number as a full cost-of-living index.
Frequently asked questions
Is $100,000 enough to live in San Francisco?
San Francisco has an RPP of approximately 120 (about 20% above the US average). A $100,000 salary in an average-cost city is equivalent to roughly $120,000 in San Francisco. Whether that is enough depends on your lifestyle, but it is below the median household income for the Bay Area.
How much do I need to earn to maintain my lifestyle in Austin if I move from New York?
New York RPP is approximately 123 and Austin is approximately 95. The cost ratio is 95/123 = 0.77. If you earn $150,000 in New York, you need $150,000 x 0.77 = $115,500 in Austin to maintain the same purchasing power.
Does this account for state income tax?
No. The RPP-based equivalent salary accounts for the cost of goods, services, and housing only. If you are moving between states with different income tax rates, you must apply that adjustment separately.
Is RPP the same thing as inflation?
No. RPP compares price levels across places for a given period, while CPI inflation tracks price changes over time. Use BEA RPP for place-to-place salary conversion and BLS CPI when you need time-series inflation.
Should I use median rent instead of RPP?
Use rent as a second check, not the whole formula. HUD Fair Market Rents are useful for housing pressure, but they do not cover groceries, transportation, services, and other local prices the way RPP is designed to.
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