A higher salary does not always mean more money in your pocket. Taxes differ by state, and benefits can be worth thousands of dollars. This is a simple way to compare offers fairly.
Step 1: Compare net pay, not gross
Put each offer through the calculator with the right state and your filing status. Here is an example with four offers, single filer, no 401(k), 2026 rules:
| Offer in | Gross salary | State tax and contributions | Take-home per year | Take-home per month |
|---|---|---|---|---|
| Texas | $85,000 | $0 | $68,628 | $5,719 |
| California | $95,000 | $5,681 | $69,982 | $5,832 |
| New York | $95,000 | $5,006 | $70,656 | $5,888 |
| Washington | $90,000 | $0 | $72,145 | $6,012 |
The California and New York offers pay $10,000 more in gross pay than Texas, but the extra take-home is much smaller than $10,000 because state and federal tax apply to the extra pay. Washington's WA Cares premium and paid leave contributions are not included in this calculator.
Step 2: Add the value of benefits
- Retirement match. A 4% employer match on an $85,000 salary is $3,400 a year of extra pay.
- Health insurance. Compare the monthly premium you pay and the deductible. A cheaper plan can be worth more than a raise.
- Paid time off and holidays. More paid days off raise your effective hourly pay.
- Bonus or equity. Count only what is guaranteed or likely, and remember that bonuses are taxed as wages.
Step 3: Adjust for cost of living
Rent, commute, childcare and local taxes differ a lot between cities. A rough rule is to compare your take-home pay after housing, not before it. Local taxes, such as some city income taxes, are not included in the calculator.
Step 4: Consider the things that are not money
Growth opportunities, flexibility, stability, commute time and team all affect how happy you will be. Money is only one part of the decision.
A checklist
- Net pay per paycheck for each offer
- Employer retirement match
- Health insurance cost and quality
- Paid time off
- Cost of housing and commuting
- Growth and stability
Learn what each line on your stub means in How to read your paycheck.
Try the take-home pay calculator to see your own numbers, or pick your state from the state list.