Comparing two job offers with the same base salary is straightforward. Comparing a $130,000 offer in San Francisco against a $95,000 offer in Denver is not — and the "obvious" higher number can be the worse deal once taxes, housing, and daily costs are accounted for. Here's a repeatable method to run before you sign.
Step 1: Convert Both Offers to After-Tax Income
State income tax alone can swing your comparison by thousands of dollars. Nine states, including Texas, Florida, and Washington, charge no state income tax. California's top marginal rate hits 13.3%. On a $120,000 salary, that's roughly an $8,000-$10,000 difference in take-home pay between otherwise identical offers — before you've even looked at rent.
| City | Gross Salary | Est. State + Fed Tax | Take-Home |
|---|---|---|---|
| San Francisco, CA | $130,000 | $38,400 | $91,600 |
| Denver, CO | $95,000 | $24,700 | $70,300 |
| Austin, TX | $100,000 | $21,300 | $78,700 |
Step 2: Subtract Realistic Housing Costs
Take median rent (or mortgage payment) for a comparable home in each city and multiply by 12. San Francisco's median 1BR rent runs about $36,000/year; Denver's about $19,800/year; Austin's about $17,400/year. Subtracting housing from take-home pay reveals the number that actually matters — discretionary income.
| City | Take-Home | Annual Rent | Discretionary Income |
|---|---|---|---|
| San Francisco, CA | $91,600 | $36,000 | $55,600 |
| Denver, CO | $70,300 | $19,800 | $50,500 |
| Austin, TX | $78,700 | $17,400 | $61,300 |
By this measure, the Austin offer — the lowest gross salary of the three — actually leaves you with the most discretionary income per year. The San Francisco offer looks close on paper but comes with a far higher cost of daily life beyond rent (groceries running 25-40% above national average, parking, and transit costs).
Step 3: Price In Benefits, Equity, and Relocation
Health insurance premiums alone can differ by $2,000-$6,000/year in employee-paid cost between employers — ask for the specific plan details and premium contribution, not just "we offer health insurance." For equity offers, apply a meaningful discount for illiquidity and risk rather than valuing at face value, especially at early-stage private companies where a 4-year vest could realistically be worth $0.
Step 4: Factor in Career Trajectory, Not Just Year One
A lower first-year offer at a company with a faster promotion cycle or denser professional network can outperform a higher offer at a company where you'll plateau. Ask about typical time-to-promotion and look at where alumni of the role have ended up (LinkedIn is useful here) rather than relying on the recruiter's pitch alone.
Step 5: Build the Full Comparison Table
Put every factor side by side: base salary, bonus target, equity (discounted), benefits value, relocation assistance, take-home pay, annual housing cost, and resulting discretionary income. Seeing it in one table strips out the anchoring effect of the headline salary number and lets you compare what actually lands in your pocket.