The Classic Dilemma
You have two job offers:
- San Francisco: $150,000/year
- Austin: $100,000/year
Which one leaves you with more money?
Most people would instinctively pick the higher number. But they'd be wrong.
Let's Do the Math
San Francisco ($150K)
- Federal Tax: ~$28,000
- CA State Tax: ~$12,000
- Net Income: ~$110,000
- Average 1BR Rent: ~$3,200/month ($38,400/year)
- Monthly Surplus: ~$5,967
Austin ($100K)
- Federal Tax: ~$15,000
- TX State Tax: $0
- Net Income: ~$85,000
- Average 1BR Rent: ~$1,600/month ($19,200/year)
- Monthly Surplus: ~$5,483
Wait—the $150K job only leaves you with ~$500 more per month? That's right.
But It Gets Worse
That $500 difference assumes equal spending everywhere else. In reality:
- Groceries are ~15% more expensive in SF
- Going out costs more
- You probably need more "stuff" to feel like you're living well
Factor those in, and the Austin job might actually leave you with MORE disposable income.
The Real Question
The question isn't "which salary is higher?" It's "which city leaves me with more money for the life I want?"
That's what Realocation calculates—your monthly surplus after taxes and rent. The number that actually determines your financial freedom.
When Higher Salary Wins
To be fair, the higher salary in an expensive city can make sense if:
- You're building your career and the opportunity is exceptional
- You plan to relocate after a few years of savings
- You genuinely prefer the expensive city's lifestyle
But if you're optimizing for financial security, the math often favors lower-cost cities—even with lower salaries.
Try It Yourself
Use our calculator to see how YOUR salary compares across cities. The results might surprise you.