Every number on our after-tax pay page comes with a list of assumptions beside it. This article explains why, and what that list is protecting you from.
What the estimate includes#
We model national income tax and the main national payroll contributions, for a single filer, using simplified rules. That is enough to compare one country with another on the same footing. It is not enough to tell you what will appear on a payslip.
What it leaves out#
- Regional and local taxes. In several of the destinations we cover, states, provinces or cities add their own tax. Our estimate does not include them, so your real figure will differ.
- Deductions and credits. Mortgage interest, pension contributions, dependants and many other items change what you owe. Each depends on your situation.
- How your household is taxed. Some systems tax individuals, some tax couples jointly, and some give allowances for children. We model a single filer.
- Benefits through the employer. Health insurance, pensions and bonuses change the real value of an offer. They are in the offer letter, not in a tax table.
- Timing. Rates and thresholds change. Every figure is labeled with the date it was last reviewed.
Why we still show it#
Because a rough, honest comparison beats a precise-looking guess. If the estimate says one destination keeps noticeably more of the same salary, that gap usually survives the details. If two are close, the details decide, and that is the moment to look closer.
How to use it well#
- Enter the offer's gross salary in the currency it is paid in.
- Read the assumptions beside the result before you read the number.
- Treat anything within a few percent as a tie.
- Move on to the cost of living, which usually decides it.
You can read the full method on the how we calculate page, including the four labels we put on every figure.