StubRate · Guides · 6 min read
What Is Stub Rate? The Number That Makes Offers Comparable
Stub rate is the share of gross salary you still have after taxes and benefits—and true stub rate after job costs. Here is how to use it.
Stub rate is a percentage, not a vibe
Gross salary is the number on the offer. Stub rate is how much of that number remains after federal income tax, a simplified state tax, Social Security, Medicare, and the benefits you actually elect. If you keep $72,000 of a $100,000 salary, your stub rate is 72%.
Percentages let you compare a $88,000 offer in Texas with a $102,000 offer in California without pretending they are in the same currency. Dollars still matter for rent. Stub rate tells you how efficient the paycheck is.
True stub rate subtracts showing up
Taxes are not the only leak. Gas, parking, transit, and work lunches are cash that never makes it to rent. StubRate’s true stub rate takes those out of net pay. Commute time is tracked as context; it is not subtracted from the cash figure.
Two jobs can share a stub rate and split on true stub rate if one is five days downtown and the other is two days hybrid.
How to use it without fooling yourself
Hold filing status, 401(k) percent, and health premium constant when you compare. Then change only salary, state, and commute. If you raise 401(k) on one offer and not the other, you are comparing savings plans, not jobs.
StubRate is an estimate. Local wage taxes, extra Medicare tax, and equity are outside the model. Use stub rate to rank offers, then confirm the winner with a payroll sample.
FAQ
What is a good stub rate?
There is no universal good number. Many W-2 salaries land roughly in the 60–75% range after federal tax, state tax, FICA, and typical benefits, then lower after commute costs. Compare two offers with the same assumptions instead of chasing a target percentage.
Is stub rate the same as net pay?
Net pay is dollars. Stub rate is that amount divided by gross salary. StubRate also shows true stub rate after cash job costs like gas, parking, and lunches.