How do you use the ACCRA Cost of Living Index?

Assume that City A has a composite index of 98.3 and City B has a composite index of 128.5. If you live in City A and are contemplating a job offer in city B, how much of an increase in your after-taxes income is needed to maintain your present lifestyle?

100 * [(City B - City A) / City A] = 100 * [9128.5 - 98.3) / 98.3] = 100 * (.3072) = 30.72%, or about a 31% increase

Conversely, if you are considering a move from City B to City A, how much of a cut in after-taxes income can you sustain without reducing your present lifestyle?

100 * [(City A - City B) / City B] = 100 * [(98.3 - 128.5) / 128.5] = 100 * (-.2350) = -23.5%, or about a 24% reduction

ACCRA is fully cognizant that state and local taxes are an integral part of the cost of living, and that tax burdens vary widely not only among states and metropolitan areas, but even within metropolitan areas. Due to the multiplicity of state and local taxes, taxing jurisdictions, and assessment procedures, it is not feasible to calculate local tax burdens reliably.

Therefore, when comparing the total cost of living difference of two or more areas, be sure to include factors that this Index comparison does not include, such as taxes.

If you would like to compare Lafayette to cities that were not listed in these reports, please see the salary calculator at www.kiplinger.com.

Cost of Living Comparison Calculator