Gross pay vs. net pay

The gap between the two is withholding for federal income tax, FICA, state and local income taxes, plus pre-tax deductions like 401(k) contributions and health insurance premiums, and any after-tax deductions.

Lenders qualify you on gross income, but your budget runs on net pay. A salary offer that looks like a big raise can shrink noticeably once taxes are taken out, especially if it moves more of your income into a higher bracket or a state with income tax.