Salary Negotiation: Think Net Pay, Not Gross

When negotiating salary, most people focus on the gross amount. Smart negotiators think about take-home pay and total compensation.

Why Net Pay Matters More

A $75,000 salary in Texas (no state income tax) can be worth more than $85,000 in California after taxes. Always calculate the actual take-home pay when comparing offers.

Factors Beyond Base Salary

• 401(k) matching: Can be worth 3-6% of salary
• Health insurance: Premium costs vary widely
• Stock options/RSUs: Potential for significant value
• Bonuses: Guaranteed vs. performance-based
• Remote work: Save on commuting and wardrobe

Negotiation Strategies

• Research salary ranges for your role and location
• Calculate total compensation, not just base
• Consider state and local taxes
• Factor in cost of living differences
• Negotiate benefits if salary is fixed

Tax-Advantaged Benefits to Negotiate

• Higher 401(k) match percentage
• HSA contributions
• Commuter benefits
• Education reimbursement
• Stock purchase plans

The Bottom Line

Always use a take-home pay calculator to compare job offers. A lower gross salary with better benefits and lower taxes might leave you with more money in your pocket.