How do I compare two job offers?

To properly compare two job offers calculate the true annual value of each: start with base salary subtract federal and state income taxes and FICA (7.65%) subtract annual commute costs and the value of commute time then add 401k match value and benefits. A $90,000 offer in California nets approximately $61,000 after taxes. The same salary in Texas nets $69,000 — an $8,000 difference from state taxes alone.

Is a higher salary always better?

Not always. A higher salary in a high-tax state with a long commute can net less than a lower salary in a no-tax state with remote work. Key factors to compare: state income tax difference (up to 13.3% in CA), commute cost and time value (average $7,200 per year), health insurance premium difference, 401k match and remote work days which save $3,000-8,000 per year in commute expenses.

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Job Offer Comparison Calculator — Which Job Offer Is Really Worth More?

See the true annual value of any offer after taxes commute and benefits

Quick Answer

A $90,000 job in New York City after state tax and commute costs can net less than an $80,000 remote job in Texas. The five factors that change which offer wins: state income tax difference (up to $15,000/year), commute time value (average $4,200/year), health insurance premium difference, 401k match difference, and remote work days saving $3,000–8,000/year in commute and work expenses.

A job offer comparison calculator shows the true annual value of each offer after all taxes commute costs and benefit values are factored in. The salary on your offer letter is not what you actually take home. Two offers that look identical on paper can differ by $15,000 or more in real annual value once all factors are calculated.