What Percentage of Their Salary Do Presidents Pay on Cost of Living in DC?

The White House with waving American flag

The presidential election is a mere few months away, but no matter who ends up in the White House next January, one thing is certain — the president’s salary.

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American presidents earn $400,000 a year, allocated monthly, and receive an expense allowance of $50,000 “to assist in defraying expenses relating to or resulting from the discharge of his official duties,” according to the U.S. Code.

In addition, the president receives a $100,000 non-taxable travel account and $19,000 for entertainment, according to CNBC Make It.

Needless to say, they also get free housing, free food and a slew of other perks.

To put this in context, the Salary Needed To Live Comfortably — 2024 Study from Smart Asset found that the cost of living in the nation’s capital is so high that to live comfortably there, a single resident has to make $99,424, and a couple would need to earn a combined $275,642.

Housing is also high. For instance, the median average price of a house stood at $614,900 in May, according to Realtor.com. In contrast, the national median price stood at $419,300 in May, according to the National Association of Realtors’ existing-home sales report released on June 21.

So what do presidents spend their salary on? And what percentage do they pay on the cost of living in D.C.?

Groceries, Parties and Legal Fees

“Michelle Obama claimed that, while they had a chef that came with the office, she and President Obama actually had to pay for their food and snacks,” said Chris Motola, special projects editor, NationalBusinessCapital.com. He also noted that one big expense the president still has is maintaining any residences he might have outside of the White House.

In addition, as Peter C. Earle, senior economist, American Institute for Economic Research, explained, the expenses that U.S. taxpayers don’t cover can generally be described by the terms “personal” and/or “discretionary.”

“The costs of private parties, entertainment and non-official travel are borne by the President,” said Earle. “So are legal fees in many cases, as a handful of recent Presidents have discovered.”

In addition, functional, operational and ceremonial expenses associated with executing the office are included; personal expenses are not.

“But some exceptions and gray areas pop up. For example, use of Camp David is a benefit of the office and does not cost the first family,” Earle said. “Also, costs of decorating the White House are covered up to $100,000 for the entire four year term.”

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If (Mostly) Everything Is Covered, Why Do They Get a Salary?

Earle explained that compensation for presidents is set by Title 3 of Section 102 of the U.S. Code. In the modern era –1969 to 2001 — they received $200,000 per year, which was bumped up to $400,000 by Bill Clinton just before he left office, he added.

“The purchasing power of $200,000 in 1969 had fallen to about $41,000 by 2001, so it seemed time for an adjustment,” said Earle, adding that he believes there will be another presidential pay raise in the next decade, since $400,000 in 2001 dollars now purchases only $225,000 in goods and services.

He also noted that despite the many perks, there are considerable expenses associated with the presidency.

“The salary of $400,000 annually serves several purposes beyond compensation,” he said. “First, the salary ensures that the occupant of that office maintains a degree of financial autonomy and dignity that’s reflective of its status and the critical responsibilities the occupant bears.”

In addition, it acknowledges that despite the benefits, there are personal expenditures and obligations that are not, and should not, be the responsibility of the U.S. taxpayer.

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