What to Compare in a Job Offer
- Take-home pay: salary minus federal, FICA and state tax. Illinois taxes wages at 4.95%; Texas at 0%.
- Health premiums: the employee share of medical, dental and vision, taken pre-tax.
- Retirement match: employer 401(k) contributions are pay that does not show in the salary.
- Bonus and equity: target bonus, stock grants and their vesting schedule.
- Time off: paid vacation, holidays and sick days.
How the Comparison Works
The comparison adds take-home pay and the employer 401(k) match for each offer. Take-home pay subtracts the yearly health premium, 2026 federal income tax, Social Security, Medicare and the state rate of that offer's state.
The Pay Raise Calculator shows how much of a salary difference reaches the paycheck.
Job Offer Comparison Example
In the default example the lower salary is worth more: $72,000 in Texas beats $75,000 in Illinois by $707.70 a year once taxes, premiums and the match are counted.
| Per year | Offer A, Texas | Offer B, Illinois |
|---|---|---|
| Salary | $72,000 | $75,000 |
| Health premiums | −$1,800 | −$3,000 |
| Taxes | −$11,984.30 | −$16,082 |
| Take-home pay | $58,215.70 | $55,918 |
| Employer 401(k) match | $2,160 | $3,750 |
| Total value | $60,375.70 | $59,668 |
Offer A: 3% match, $150 a month for health cover. Offer B: 5% match, $250 a month. Single filer, 2026 federal tax and FICA, flat state rates.
Comparing Offers in the Same State
When both jobs are in the same state, the gap comes down to salary, premiums and the match, because the state tax rate is the same.
Move Offer B to Texas and it wins by $2,856.30 a year: take-home of $59,482 plus a $3,750 match, against $60,375.70 for Offer A. The $3,000 higher salary, less $1,200 of extra premiums, still adds take-home, and the higher match adds the rest.
Job Offer Comparison Chart by State
A comparison chart by state shows how far the same salary moves when the job moves. Offer A stays at $72,000 in Texas; Offer B is $75,000 with its own premium and match in each state.
| Offer B state | Offer B take-home / year | Better offer and gap |
|---|---|---|
| Texas | $59,482 | Offer B by $2,856.30 |
| Arizona | $57,682 | Offer B by $1,056.30 |
| Pennsylvania | $57,271.60 | Offer B by $645.90 |
| Illinois | $55,918 | Offer A by $707.70 |
How to Put a Dollar Value on Benefits
Benefits are valued by turning each one into dollars per year, so they can sit in the same column as salary.
- 401(k) match: salary × match rate. A 5% match on $75,000 is $3,750, if you contribute enough to earn it.
- Health premiums: monthly employee share × 12. Also compare deductibles and out-of-pocket limits.
- Paid time off: daily pay × days. $75,000 over 260 workdays is $288.46 a day, so 5 extra days are worth $1,442.31.
- HSA contribution: the employer's yearly deposit, tax-free.
- Bonus: the target amount, discounted if it is not guaranteed.
Comparing a Salary Offer With an Hourly Offer
To compare a salary offer with an hourly offer, multiply the hourly rate by 2,080 hours to get a full-time yearly figure.
$36 an hour is $74,880 a year at 40 hours a week. An hourly job also earns time and a half past 40 hours, while an exempt salaried job does not. Five overtime hours a week at that rate add $14,040 a year.
The Hourly to Salary Calculator runs the conversion for any rate and schedule.
Remote Job Offers and State Tax
A remote worker generally pays state income tax to the state where the work is done, which is usually the state they live in, not the employer's state.
- Convenience rule: New York and a few other states can tax a remote employee of an in-state employer who works from home by choice.
- Two states: a worker taxed by two states normally claims a credit in the home state for tax paid to the other.
- In the calculator: set each offer's state to the state that will tax the wages.
Job Offer Comparison Worksheet
A job offer comparison worksheet lists every money item of both offers in one table, with the yearly dollar value in each row.
- Base salary, or hourly rate × hours × 52.
- Target bonus, commission and sign-on bonus.
- Stock or equity, with the vesting schedule.
- Employer 401(k) match and any vesting rule on it.
- Health premiums, deductible and HSA deposit.
- Paid vacation, holidays and sick days.
- Commute, parking or home office costs.
- Relocation help and state income tax.
Rows 1, 4, 5 and the state go into this calculator. The others are added by hand.
Frequently Asked Questions
How do you compare two job offers?
You compare two job offers by take-home pay plus benefits: salary after taxes and health premiums, plus the employer retirement match, bonus and paid time off.
Is a higher salary always the better offer?
No. A higher salary in a state with income tax, or with higher health premiums, can leave less take-home pay than a lower salary.
What should a job offer comparison spreadsheet include?
It should include salary, bonus, equity, retirement match, health costs, paid time off and state tax for each offer, each turned into a yearly dollar figure.
How much is a 401(k) match worth?
A 401(k) match is worth the salary times the match rate each year. A 5% match on $75,000 is $3,750, paid on top of salary.
Should I take a lower salary in a state with no income tax?
It can pay more. In the default example, $72,000 in Texas leaves $707.70 more a year than $75,000 in Illinois after tax, premiums and the match.
How do I value paid time off in a job offer?
You value paid time off by multiplying daily pay by the number of paid days. Daily pay is the yearly salary divided by 260 workdays.
Does the job offer calculator include cost of living?
No. It counts taxes, health premiums and the 401(k) match only. Rent, commute and other living costs need to be compared separately.
Do health premiums lower my taxes?
Yes. Premiums paid through an employer plan are usually taken before tax, so they cut income tax and FICA as well as take-home pay.