Published April 5, 2026 · Updated annually
Am I Underpaid? How to Know Your Market Rate
You are underpaid if your total compensation falls below the 50th percentile (median) for your role, experience level, and geographic market. The only way to know for sure is to compare your salary against actual market data — not job postings, not Glassdoor estimates, but Bureau of Labor Statistics data covering 53 roles across 25 metro areas.
Step 1: Find Your Role Benchmark
Look up your job title on SalaryTruth to see the full percentile distribution for your role. Percentiles tell you exactly where your salary falls relative to everyone else doing the same job:
- 10th percentile — Entry level or well below market. 90% of workers earn more.
- 25th percentile — Below average. You may be underpaid.
- 50th percentile (median) — Right in the middle. Half earn more, half earn less.
- 75th percentile — Above average. Strong compensation.
- 90th percentile — Top of market. Senior or high-cost-of-living area.
Step 2: Adjust for Your City
A $100K salary in San Francisco is not the same as $100K in Dallas. Cost of living varies dramatically. When benchmarking, compare your salary to the percentile data for your specific metro area, not national averages. Our data breaks down every role by city so you can see exact local market rates.
Sample Role Data
| Role | Cities | Category |
|---|---|---|
| Software Developer | 25 | Technology |
| Data Scientist | 25 | Technology |
| Computer Systems Analyst | 25 | Technology |
| Web Developer | 25 | Technology |
| Network Architect | 25 | Technology |
| Information Security Analyst | 25 | Technology |
| Computer Network Architect | 25 | Technology |
| Computer Network Support Specialist | 25 | Technology |
| Software Quality Assurance Analyst | 25 | Technology |
| Computer Occupations (Other) | 25 | Technology |
Step 3: Calculate Your Total Compensation
Base salary is only part of the picture. When benchmarking, include:
- Base salary
- Annual bonus (guaranteed and target)
- Stock/equity grants (annualized vesting value)
- 401(k) employer match
- Health insurance (employer-paid portion)
A $90K salary with a $10K bonus, $15K in equity, and 4% 401k match on $90K ($3,600) is really $118,600 in total compensation. Compare that total to market data, not just the base.
What to Do If You Are Underpaid
- Document your market data — Print the percentile data for your role and city from SalaryTruth
- Time your ask — Performance reviews, after completing a major project, or when you receive an outside offer
- Lead with data — "According to BLS data, the median salary for [role] in [city] is $X. My current comp of $Y places me at the Nth percentile."
- Have a number — Ask for a specific amount, not a range
- Consider alternatives — If your employer cannot match market rate, negotiate title, remote work, additional PTO, or professional development budget
Frequently Asked Questions
Compare your total compensation to the 50th percentile (median) for your role in your metro area. If you are below the 25th percentile, you are likely significantly underpaid. SalaryTruth provides BLS data for 53 roles across 25 cities.
The Bureau of Labor Statistics (BLS) Occupational Employment and Wage Statistics (OEWS) is the gold standard. It surveys hundreds of thousands of employers annually and provides percentile breakdowns by occupation and metro area. Self-reported sites like Glassdoor can be useful but have selection bias.
In many states, it is illegal for employers to ask your current salary. Even where legal, you are generally better served providing your target compensation rather than your current salary. Anchoring to your current (possibly below-market) salary can hold you back.