The Total Compensation Framework
Job offer comparison framework: true take-home after all factors
| Component | Job A | Job B | Notes |
|---|---|---|---|
| Base salary | $85,000 | $95,000 | Nominal difference: +$10,000 |
| State income tax (A: TX, B: CA) | $0 | -$6,500 (est.) | California 6.85% effective rate |
| Health insurance premium | -$200/month | -$400/month | Better plan in A, employee pays less |
| 401k employer match | +$2,550 (3%) | +$4,750 (5%) | Job B match is higher % |
| Commuting cost | $0 (remote) | -$300/month ($3,600/yr) | Job B requires office 3 days/week |
| Net annual benefit | $85,000 | $89,250 effective | After tax and benefit adjustments |
| Net monthly take-home approx. | $5,300 | $5,700 | After all adjustments |
How State Taxes Change the Comparison
Two $90,000 job offers in different states can mean $5,000-$10,000 difference in annual take-home. A $90,000 offer in Texas takes home approximately $67,000 (federal tax + FICA, no state tax). The same salary in California produces approximately $60,000 in take-home (additional $7,000+ in California state income tax). The higher-paying offer in a high-tax state may net less than a lower-paying offer in a no-tax state.
Never compare job offers by gross salary alone. Always calculate approximate take-home pay for each offer, accounting for the state’s tax rate, your expected filing status, and any major benefit cost differences. A $95,000 offer in California often nets less than an $85,000 offer in Florida at equivalent tax levels.
Non-Salary Benefits That Affect Take-Home
- 401(k) employer match: a 6% match on $90,000 = $5,400 in free money; a 3% match = $2,700
- Health insurance: employee cost difference of $200/month = $2,400/year difference in net income
- Remote work: eliminating $300/month commute costs adds $3,600/year in effective take-home
- Subsidized parking or transit: saves $100-$325/month in commuting costs
- Tuition reimbursement: $5,250/year is tax-free and highly valuable if you plan to pursue education
- Company equity (RSUs, options): model vest schedules and expected value; often larger than base salary for tech roles
- Life and disability insurance employer contributions: saves $50-$200/month vs. buying individually
Calculate Each Job Offer’s True Take-Home Pay
Enter each job’s salary and state to compare the actual net pay you would receive from each offer.