The bigger salary is not always the better offer. Compare what each one actually leaves you after state taxes, benefits, and the commute — the numbers recruiters never put side by side.
Better offer
Offer B
Worth $11,713 more a year than the next best, once taxes, benefits, and job costs are counted.
Annual value
$78,449
Real hourly
$39.22
Commute
Commute
| Offer A | 🥇 Offer B | |
|---|---|---|
| Base salary | $95,000 | $88,000 |
| Annual bonus | $4,750 | $7,040 |
| Gross (recurring) | $99,750 | $95,040 |
| Federal tax | ($13,317) | ($12,281) |
| State tax | ($9,277) | — |
| Social Security + Medicare | ($7,631) | ($7,271) |
| Take-home pay | $69,525 | $75,489 |
| Health premiums | ($3,000) | ($1,440) |
| Commuting cost | ($2,640) | — |
| Other costs | — | — |
| Spendable | $63,885 | $74,049 |
| + 401(k) match | $2,850 | $4,400 |
| Total annual value | $66,735 | $78,449 |
| Hours per week (incl. commute) | 47.5 | 40.0 |
| Real hourly value | $28.10 | $39.22 |
| PTO value | $5,481 (15d) | $6,769 (20d) |
Offer B
$88,000 base · $39.22/hr real · 40.0 hrs/wk
$78,449
Offer A
$95,000 base · $28.10/hr real · 47.5 hrs/wk
$66,735
−$11,713
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Recruiters compare offers on one number because it is the only one they control. Four things routinely overturn it:
How do you compare two job offers with different salaries?
Convert both to what actually reaches you over a year. Start from base pay plus bonus, subtract federal, state, and FICA taxes, subtract what the job costs you (health premiums, commuting), then add the employer 401(k) match. A $7,000 salary difference routinely reverses once state tax and a commute are included.
Is a higher salary in a high-tax state worth it?
Often not. Moving from a no-income-tax state to one taxing around 9% costs roughly 9% of gross straight away, so the higher offer needs to clear that gap before it is even level. This tool shows the crossover point for your specific numbers.
How much is a 401(k) match actually worth?
A 5% match on a $90,000 salary is $4,500 a year of additional compensation you would otherwise have to fund yourself. It is real money, though it lands in a retirement account rather than your bank, so it is counted separately from spendable pay here.
Should a signing bonus decide my choice?
Be careful. A signing bonus is paid once, so it flatters the first year and does nothing thereafter. This calculator ranks offers on ongoing value and reports the first-year figure separately, so a one-off payment cannot win a multi-year decision on its own.
How do I put a value on a commute?
Two ways, both of which matter. It costs money (fuel, transit, parking) and it costs time the job consumes but does not pay for. A 45-minute each-way commute is 7.5 unpaid hours a week — nearly a full working day — which is why the real hourly figure often separates offers that look close on salary.
Does this account for cost of living differences?
No. It compares taxes, benefits, and job costs, not housing or groceries. A city with lower taxes may have higher rent. Treat the result as the pay-and-benefits half of the decision.
Decided which offer you want? Work out the salary you need to ask for to hit a target take-home, check what your current job really pays per hour, or see the full paycheck breakdown in your new state. Once you start, our paycheck checker confirms the first stub matches what you agreed.