Salary Leaderboard · 2026
$40,000 Salary: Best & Worst US Cities
Ranked by salary stretch ratio — monthly take-home divided by monthly living costs
B
Best City Grade
Mitchell
$3k/mo
Avg Take-Home
across all cities
0
A-Grade Cities
stretch ratio ≥ 2.0×
Mitchell
South Dakota
B1.60×
stretch ratio
Aberdeen
South Dakota
C1.50×
stretch ratio
Watertown
South Dakota
C1.50×
stretch ratio
Full Salary Leaderboard
Top 20 cities — ranked by salary stretch ratio
| # | City | Take-Home/mo | Rent/mo | Savings/mo | Grade |
|---|---|---|---|---|---|
| 1 | MitchellSouth Dakotabudget | $2,848 | $900 | $1,068 | B |
| 2 | AberdeenSouth Dakotabudget | $2,848 | $1,000 | $948 | C |
| 3 | WatertownSouth Dakotabudget | $2,848 | $1,000 | $948 | C |
| 4 | Fort SmithArkansasbudget | $2,706 | $950 | $886 | C |
| 5 | WeirtonWest Virginiabudget | $2,717 | $950 | $887 | C |
| 6 | MeridianMississippibudget | $2,692 | $950 | $862 | C |
| 7 | WaterlooIowabudget | $2,722 | $1,000 | $822 | C |
| 8 | JonesboroArkansasbudget | $2,706 | $1,000 | $816 | C |
| 9 | ParkersburgWest Virginiabudget | $2,717 | $1,000 | $812 | C |
| 10 | Grand IslandNebraskabudget | $2,709 | $1,000 | $809 | C |
| 11 | LawtonOklahomabudget | $2,706 | $1,000 | $806 | C |
| 12 | TopekaKansasbudget | $2,696 | $1,000 | $796 | C |
| 13 | MontgomeryAlabamabudget | $2,695 | $1,000 | $795 | C |
| 14 | Grand ForksNorth Dakotabudget | $2,848 | $1,100 | $828 | C |
| 15 | MinotNorth Dakotabudget | $2,848 | $1,100 | $828 | C |
| 16 | BrookingsSouth Dakotabudget | $2,848 | $1,100 | $828 | C |
| 17 | MemphisTennesseebudget | $2,848 | $1,100 | $828 | C |
| 18 | ShreveportLouisianabudget | $2,749 | $1,050 | $799 | C |
| 19 | ButteMontanabudget | $2,658 | $1,000 | $758 | C |
| 20 | ToledoOhiobudget | $2,816 | $1,100 | $796 | C |
Hardest Cities for a $40,000 Salary
Salary Grade Guide
Grade is based on how many times your monthly take-home covers your estimated monthly living costs (rent + other expenses).
A+
2.5× and above
Excellent — very high savings
A
2.0× – 2.5×
Great — comfortable surplus
B
1.5× – 2.0×
Good — moderate savings
C
1.0× – 1.5×
Tight — limited savings
D
0.5× – 1.0×
Hard — little left over
F
Below 0.5×
Deficit — costs exceed pay
Frequently Asked Questions
Which city makes a $40,000 salary go the furthest in 2026?
Mitchell, South Dakota tops the leaderboard for a $40,000 salary. With a monthly take-home of $2,848, a rent of $900/month, and an effective tax rate of 14.56%, your salary stretch ratio is 1.60x — meaning your take-home is 1.60 times your monthly living costs.
How is the salary leaderboard score calculated?
Each city is scored by its "salary stretch ratio": monthly take-home pay divided by total monthly living costs (rent + estimated other expenses). A ratio above 2.0 means you earn at least twice your monthly costs — a very comfortable position. Cities with no state income tax and lower rents consistently score highest.
What does the salary grade mean?
The grade summarizes how well a $40,000 salary stretches in a given city. A+ (ratio ≥ 2.5×) means your take-home is more than 2.5× your costs — excellent savings potential. A (2.0–2.5×), B (1.5–2.0×), C (1.0–1.5×), D (0.5–1.0×), and F (below 0.5×) mean tighter budgets. Only 0 cities earned an A or A+ grade for a $40,000 salary.
What is the average monthly take-home for a $40,000 salary across all US cities?
The average monthly take-home pay for a $40,000 salary across all tracked US cities is $2,735/month. Actual take-home varies by state income tax, with no-tax states like Texas and Florida offering the highest net pay, while California, New York, and Oregon take the largest portion.