Salary Comparison
Compare salaries across different jobs, cities & countries. Factor in cost of living & taxes to see real purchasing power. Make better career decisions.
Current Job / Offer A
New Offer / Offer B
About Salary Comparison
Free Online Tool
Salary Comparison
Enter the annual base salary, bonus and benefits, and estimated tax rate for two job offers or income scenarios — get a true after-tax take-home comparison and a clear recommendation on which pays more where it actually counts.
How to Use This Tool (30 Seconds)
- 1Enter Annual Base Salary: Input the fixed yearly salary before tax for each offer. This is the guaranteed cash component — the figure stated in the employment contract before any variable pay, bonuses, or benefits are added.
- 2Enter Annual Bonus and Benefits: Input the total annual value of bonuses, employer pension contributions, health insurance, stock options (vested annual value), and any other quantifiable benefits. Convert non-cash benefits to annual dollar value — employer health coverage worth $6,000 annually should be entered as $6,000.
- 3Enter Estimated Tax Rate: Input your effective tax rate as a percentage — the percentage of your total income actually paid in tax, not your marginal rate. Effective rates differ between offers if they push you into different tax brackets. Use a tax calculator or your prior year's effective rate as a starting point.
- 4Read the Take-Home Comparison: The tool calculates gross total compensation, estimated tax liability, and annual and monthly take-home pay for both offers side by side — revealing which pays more in actual disposable income, not just headline salary.
The Formulas Behind True Take-Home Pay
The tool calculates four derived values from your three inputs. The critical distinction is between Total Compensation and After-Tax Take-Home — two figures that can differ dramatically between offers:
// Total gross compensation
totalGross = baseSalary + annualBonusAndBenefits
// Estimated annual tax liability
taxLiability = totalGross × (taxRate ÷ 100)
// Annual after-tax take-home
annualTakeHome = totalGross − taxLiability
// Monthly take-home pay
monthlyTakeHome = annualTakeHome ÷ 12
// Compensation advantage between offers
annualAdvantage = takeHomeA − takeHomeB
// Example: Offer A vs Offer B
A: $95,000 base + $10,000 benefits, 24% tax
totalGross A = $105,000 | taxLiability = $25,200 | takeHome = $79,800
B: $100,000 base + $3,000 benefits, 26% tax
totalGross B = $103,000 | taxLiability = $26,780 | takeHome = $76,220
Offer A wins by $3,580/year despite lower base salary
The worked example demonstrates the core insight this tool surfaces: a higher base salary does not guarantee higher take-home pay. A $5,000 lower base salary with $7,000 more in benefits and a 2% lower effective tax rate produces $3,580 more in annual disposable income. Comparing offers on base salary alone — the default approach for most job seekers — leads to systematically poor compensation decisions.
Effective Tax Rate Reference — By Income Band (US 2024)
| Annual Income | Marginal Rate | Effective Rate (Est.) | Monthly Take-Home Est. |
|---|---|---|---|
| $30,000–$44,725 | 12% | 8–10% | $2,270–$3,390 |
| $44,725–$95,375 | 22% | 13–17% | $3,100–$6,600 |
| $95,375–$150,000 | 24% | 18–21% | $6,300–$9,900 |
| $150,000–$201,050 | 32% | 22–25% | $9,400–$12,600 |
| $201,050–$383,900 | 35% | 26–30% | $11,900–$22,600 |
| > $383,900 | 37% | 30–35% | $20,800+ |
Marginal rates based on IRS 2024 federal income tax brackets for single filers. Effective rates are estimates after standard deduction. State income tax, FICA, and local taxes are not included. Use a tax calculator for your specific filing status and state for a precise effective rate.
⚡ Pro Tip
Most people undervalue employer benefits because they compare them in dollar terms against base salary — but benefits have a pre-tax efficiency advantage that cash salary does not. Employer-paid health insurance worth $8,000 annually is not equivalent to $8,000 in salary — it is equivalent to $8,000 ÷ (1 − effectiveTaxRate) in pre-tax salary. At a 22% effective rate, $8,000 in employer health coverage is worth the same as $10,256 in additional salary because you would need to earn $10,256 gross to have $8,000 left after tax to buy the same coverage independently. Always gross up non-cash benefits before entering them for the most accurate comparison.
Disclaimer: This tool provides estimated after-tax figures for informational purposes only and does not constitute tax or financial advice. Tax calculations use a flat effective rate applied to total gross compensation and do not account for deductions, credits, filing status, state taxes, FICA contributions, or pre-tax benefit treatments. Consult a certified public accountant (CPA) or tax advisor for precise take-home calculations specific to your situation.
Frequently Asked Questions
Q: What is the difference between marginal tax rate and effective tax rate?
Your marginal rate is the tax percentage applied to your last dollar of income — the bracket you are in. Your effective rate is the actual percentage of your total income paid in tax after all brackets are applied progressively. A $100,000 earner in the 22% marginal bracket pays an effective rate of approximately 16–17% because income below the bracket thresholds is taxed at lower rates. Always use effective rate in this tool, not marginal rate.
Q: How do I calculate the annual value of employer benefits like health insurance?
Ask HR for the employer's annual premium contribution for health coverage — this is the cash equivalent value. For pension or 401(k) matching, multiply your expected annual contribution by the match percentage (e.g., 100% match up to 6% of $80,000 salary = $4,800 employer contribution). For stock options, use the vested annual grant value from your offer letter. Sum all employer-funded benefits for the annual benefits figure.
Q: Should I include the bonus in the comparison if it is not guaranteed?
Enter your realistic expected bonus — not the maximum possible. If the offer states 'up to 20% bonus,' research the company's typical payout rate and enter that percentage of base salary instead. Including the full stated maximum inflates one offer artificially and produces a misleading comparison. A $10,000 guaranteed bonus is worth more than a $20,000 target bonus with a 40% historical payout rate.
Q: Can two offers with the same gross salary produce different take-home pay?
Yes — if the effective tax rates differ. An offer that includes more pre-tax benefits (employer health insurance, 401k contributions, FSA) reduces taxable income, lowering your effective tax rate even on the same gross compensation. Two $100,000 gross offers can produce take-home figures differing by $3,000–$6,000 annually depending on benefit structure and how much of the compensation is in pre-tax vs taxable form.
Q: How do I account for cost of living if the two jobs are in different cities?
This tool compares nominal take-home pay. If the two offers are in different cities, adjust for cost of living by dividing each take-home figure by the city's cost-of-living index relative to a baseline. A $70,000 take-home in Austin (index ~95) has roughly the same purchasing power as $85,000 in San Francisco (index ~117). The NerdWallet and CNN cost-of-living calculators provide city-specific adjustment factors.
Q: What counts as benefits for the Annual Bonus and Benefits field?
Include all employer-funded compensation beyond base salary: annual bonus (use realistic expected value), employer 401k or pension match, employer health and dental insurance premiums, life insurance, tuition reimbursement, remote work stipends, gym memberships, equity grants (vested annual value), and any other recurring employer-funded benefit with a quantifiable cash equivalent.
Q: Is a higher salary always better if both offers are in the same city?
Not necessarily — benefits efficiency, tax treatment, and total compensation structure matter. A lower base salary with a generous pension match, full health coverage, and performance bonus can produce higher lifetime wealth than a higher base with no benefits. The comparison tool's after-tax take-home figure is the correct primary metric. Secondary metrics — career growth, job security, and role satisfaction — are outside the scope of a financial comparison but should inform the final decision alongside the numbers.