Cost of Living vs Salary: How to Calculate Your Real Income
TL;DR: A bigger salary is not the same as more money in your pocket. Once local prices and state taxes change, you may need 20–40% more just to stand still. An equivalent-salary calculator shows the truth.
The trap of the headline number
Job offers lead with the salary. But if you move from a low-cost city to an expensive one, your $120,000 offer might buy less than your old $95,000 after rent, taxes and commuting. The headline lies.
What equivalent salary means
Your equivalent salary is the income you need in a new city to keep the same standard of living. It blends two adjustments:
- Regional price parity — how much more expensive goods and housing are locally.
- Tax differences — state income tax, local taxes and how they hit your bracket.
Run your own numbers
Enter your current city, target city and income to see your true equivalent salary.
Calculate Your Salary →A worked example
Moving from Austin (no state income tax) to Boston (flat state income tax) for a $130,000 offer? Boston's higher rents and state tax mean you may need closer to $150,000 to match your Austin lifestyle. Without the calculator, the offer looks like a raise — and isn't.
Don't forget one-time costs
Equivalent salary covers recurring cost of living. A real move also has moving expenses, deposits and possibly a relocation package. Factor those with a Job Relocation Calculator.