Remote vs Onsite Salary Comparison
Many companies geo-adjust remote salaries 10-30% lower for non-HQ locations. Compare effective take-home vs onsite to determine if remote saves you money after all costs.
| HQ salary | — |
| Remote salary (after geo adjustment) | — |
| HQ after-tax (state income tax) | — |
| Remote after-tax | — |
| HQ cost-of-living-adjusted real income | — |
| Remote cost-of-living-adjusted real income | — |
| Real income difference | — |
Many tech companies geo-adjust remote salaries — paying 10-30% less for employees in cheaper locations vs HQ. This calculator compares real (purchasing-power-adjusted) take-home pay between HQ onsite and remote scenarios, accounting for state income tax differences and cost of living. For many engineers, geo-adjusted remote in TX/FL beats HQ in SF/NYC on real income — the salary cut is smaller than the cost-of-living and tax differential.
Geo-Adjustment Realities
Most large tech companies have geographic pay zones: SF/NYC Tier A (100% of base), Tier B (~95%), Tier C (~85-90%), Tier D (~75-80%). Some companies (Meta, GitLab) publicly publish these zones. Others adjust silently. The key question: is the geo-adjustment less than the cost-of-living differential? SF is roughly 80% more expensive than Austin; a 15% pay cut to move to Austin is a HUGE real raise. NYC is roughly 100% more expensive than Charlotte; a 20% cut to Charlotte is similarly a massive raise.
State Income Tax Stacking
Moving from a high-tax state (CA 13.3% top, NY 10.9%, OR 9.9%) to a zero-tax state (TX, FL, WA, NV, TN, NH on wages) provides 8-13% take-home boost on top of any cost-of-living advantage. Combined with a smaller geo-adjustment, the math becomes overwhelming. A SWE earning $250K base in SF pays roughly $35K in CA state tax. Same person in Austin pays $0. That's $35K/year — equivalent to a 14% raise just from tax.
Hidden Costs of Remote Work
(1) Career velocity: some studies show fully remote engineers get promoted 20-30% slower than hybrid/onsite peers. Visibility and informal mentoring matter. (2) Loneliness and burnout: 25%+ of remote workers report serious isolation. Coworking, in-person team meetups, and community engagement help. (3) Tax complexity: working remotely in multiple states triggers complex multi-state tax filings. (4) Home office costs: typically $5-15K to set up a productive home office. (5) Healthcare network: HQ-located insurance may have weaker in-network coverage where you live. Run all these factors when comparing offers. Source: BLS, Numbeo, Levels.fyi remote vs onsite data.
Last updated May 2026. Sources: BLS Wages.