Why Two GS-9 Jobs Can Pay $15,000 Apart

You find a GS-9 job listing on USAJobs. The pay range says $61,000 to $79,000. You find a second GS-9 posting in a different city. This one says $68,000 to $88,000. The grade is the same. The step is the same. But the paycheck is not.

That gap is locality pay. It is the single biggest variable in your federal salary. And many veterans applying to federal jobs have no idea it exists.

I spent 1.5 years after separating from the Navy applying to government jobs with zero callbacks. When I finally cracked the code and started getting hired, I learned fast that WHERE you work matters almost as much as WHAT grade you hold. I changed career fields six times across federal service. Every time, locality pay shaped my take-home number.

This guide breaks down how locality pay works in 2026. You will learn what it is, how OPM sets the rates, which areas pay the most, and how to use this info when you target your next federal job.

What Is GS Locality Pay?

Locality pay is an extra percentage added on top of your base GS salary. OPM (the Office of Personnel Management) sets it. The idea is simple. The cost of living is not the same everywhere. A GS-12 in San Francisco needs more money than a GS-12 in rural Alabama to afford the same lifestyle.

Congress created the locality pay system in 1990 through the Federal Employees Pay Comparability Act (FEPCA). The goal was to close the gap between federal and private sector wages in high-cost areas.

Every GS employee gets locality pay. You do not have to apply for it. It is automatic based on your duty station. Your official job offer will show your adjusted salary (base pay + locality). That adjusted number is your actual paycheck.

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How Does OPM Set Locality Pay Rates?

OPM does not just pick numbers out of thin air. There is a process. The Federal Salary Council studies pay gaps between federal and private sector workers in each area. This council is made up of pay experts and union reps. They send recommendations to the President. The President sets the final rates each January.

In 2026, there are 58 locality pay areas across the country. Each one has its own percentage. If your duty station falls outside all 58, you get the "Rest of U.S." (RUS) rate. That is the lowest locality rate.

The RUS rate in 2026 is 17.57%. That means even if you work in a small town with no named locality area, you still get a 17.57% bump on top of your base pay. Nobody in the GS system earns just the base rate anymore.

The 2026 Locality Percentages That Matter Most

Here are the locality pay areas with the highest adjustments in 2026. These are the percentages added on top of your base GS salary.

• San Jose-San Francisco-Oakland, CA: 46.01%
• Washington-Baltimore-Arlington, DC-MD-VA: 34.72%
• New York-Newark, NY-NJ-CT-PA: 38.37%
• Seattle-Tacoma, WA: 35.02%
• Los Angeles-Long Beach, CA: 37.08%
• Houston-The Woodlands, TX: 36.37%
• Boston-Worcester-Providence, MA-RI-NH-CT: 33.98%
• San Diego-Carlsbad, CA: 33.48%
• Denver-Aurora, CO: 32.35%
• Rest of U.S.: 17.57%

Source: OPM.gov 2026 Locality Pay Tables.

How Much Does Locality Pay Change Your Salary?

The difference is not small. It can change your annual salary by $10,000 to $25,000 or more. Same grade. Same step. Same job duties. Just a different zip code.

Here is a real example. A GS-9, Step 1 has a 2026 base salary of $49,960. That is the number before locality gets added. Now watch what happens in different cities.

At higher grades, the gap grows even bigger. A GS-13, Step 1 earns $92,123 base. In the DC area with 34.72% locality, that jumps to $124,103. In the RUS area, it is $108,299. That is a $15,804 difference at the same grade and step.

This is why your GS pay scale calculator needs to be set to the right location. The base pay table alone will not tell you what you actually earn.

The 2026 GS Locality Pay Table: Side-by-Side Salary Comparison

Numbers make this real. Here is what the same GS grade looks like across five different locality areas in 2026. All figures are Step 1.

Source: OPM.gov 2026 General Schedule Pay Tables. Step 1 values shown.

Look at the GS-12 row. A GS-12 in the Rest of U.S. makes $85,211. A GS-12 in San Francisco makes $105,822. That is a $20,611 gap. Same job title. Same responsibilities. Just a different city.

If you want to understand how these grades compare to your military rank, check our guide on GS-11 equivalent military rank or the GS-15 equivalent military rank breakdown.

Which Locality Pay Areas Do Veterans Target Most?

Veterans tend to cluster around military installations and areas where defense jobs are common. Many of the highest-paying locality areas overlap with places where veterans already live or want to settle after separation.

Washington, DC Area (34.72%)

The DC metro area is the biggest federal job market in the country. If you separate from the military and want to stay in the federal system, this is where the most openings are. DoD headquarters, VA central office, DHS, and dozens of agencies are here. The 34.72% locality bump makes even mid-grade positions competitive with private sector salaries.

San Diego, CA (33.48%)

Huge Navy and Marine Corps presence. Many sailors and Marines separate here and stay for the weather and the military community. Naval Base San Diego, Camp Pendleton, and SPAWAR (now NAVWAR) create a steady stream of GS openings. The 33.48% locality rate helps offset California's high cost of living.

Hampton Roads, VA (29.28%)

Norfolk, Virginia Beach, Newport News. This is the largest Naval base complex in the world. Thousands of Navy vets stay in the area after separating. Shipyard jobs, base operations, and NAVSEA positions all fall under this locality area.

San Antonio, TX (28.63%)

Joint Base San Antonio covers Lackland, Randolph, and Fort Sam Houston. Huge Air Force and Army medical presence. Many military medical personnel transition to federal health care roles here. Texas has no state income tax, so the locality rate goes further.

Colorado Springs, CO (28.41%)

Fort Carson, Peterson Space Force Base, Schriever Space Force Base, NORAD. The Space Force and Army presence creates a solid federal job market. The 28.41% locality rate combined with Colorado's quality of life makes this a popular landing spot.

How to Find the Locality Pay Area for Any Federal Job

Every federal job listing on USAJobs shows the duty station. Once you know the city, you can look up the locality pay area on OPM's website. But there are faster ways to do it.

Step 1: Check the Job Posting

The salary range on USAJobs already includes locality pay. If a GS-11 posting shows $71,102 to $92,429 and the duty station is Rest of U.S., that range reflects the 17.57% adjustment. If the posting says DC, the range will be higher. The listing does the math for you.

Step 2: Use OPM Pay Tables

Go to OPM.gov and search for "2026 GS Pay Tables." OPM publishes a separate table for each locality area. Find your city. Find your grade and step. That is your adjusted salary. You can also use our federal GS pay scale veterans guide for a walkthrough of the full table.

Step 3: Know Your Locality Area Name

OPM groups cities into named areas. Some names are obvious (Washington-Baltimore, Los Angeles). Others are not. For example, Killeen, TX (Fort Cavazos) falls under the "Rest of U.S." area because it is not large enough for its own locality zone. But San Antonio (60 miles south) has its own locality rate. The difference between those two duty stations could mean thousands of dollars per year.

Step 4: Check for Special Rate Tables

Some federal jobs have "special rate" pay that stacks on top of locality. IT positions (GS-2210 series), medical roles, and certain engineering jobs may qualify. If your job series has a special rate table, you could earn even more than the standard locality adjustment.

Locality Pay vs. Cost of Living: What Veterans Need to Calculate

A bigger locality percentage does not always mean a better financial deal. You have to weigh the extra pay against the cost of living in that area. This is where many veterans get tripped up.

San Francisco has the highest locality rate at 46.01%. But San Francisco also has some of the highest rents, gas prices, and grocery costs in the country. A GS-12 earning $105,822 in San Francisco may have less spending power than a GS-12 earning $85,211 in a lower-cost area.

Here is a rough comparison. A GS-12, Step 1 in different areas with estimated monthly expenses after taxes.

The lesson here is simple. Do not chase the highest locality rate. Chase the best ratio of pay to cost of living. A GS-12 in Huntsville, Alabama (29.21% locality) with cheap housing may live better than a GS-12 in New York (38.37% locality) paying $2,800 in rent.

If you are weighing different federal pay systems, our WG vs GS federal pay comparison covers how Wage Grade positions handle locality differently.

Does Locality Pay Affect Your Retirement?

Yes. This is a big deal and many people miss it.

Your federal retirement annuity (under FERS) is based on your "high-3" average salary. That high-3 includes locality pay. So working in a higher locality area during your last three years of federal service can permanently increase your retirement check.

Here is how that works. FERS retirement is calculated as 1% (or 1.1% if you retire at 62+) of your high-3 average salary, multiplied by your years of service. If your high-3 is $120,000 and you have 20 years of service, your annual pension is $24,000. But if you spent your last three years in a higher locality area and your high-3 is $135,000, that pension jumps to $27,000. Every year. For life.

This is why some federal employees transfer to DC or San Francisco for their final years before retirement. The higher locality pay flows straight into their pension calculation.

How Locality Pay Works With Remote and Telework Jobs

Remote work changed the locality pay conversation. Before 2020, your pay was based on your office location. Now, with more federal remote jobs, it gets more complicated.

Telework (Hybrid) Jobs

If your position is telework-eligible but you still have an official duty station, your locality pay is based on the office location. You could work from home four days a week in a rural area. You still get the DC locality rate because your official duty station is in DC. This is the most common setup.

Full Remote Jobs

If your position is designated as full remote, your locality pay is based on where you live. If you take a remote job with a DC agency but live in Boise, Idaho, you get the Boise locality rate. If Boise falls outside a named area, you get the Rest of U.S. rate instead. This can mean a pay cut compared to what you would earn at the physical office.

Some veterans see a remote GS-13 job and assume it pays the DC rate because the agency is in DC. It does not. Read the job listing carefully. Look for "Remote" vs. "Telework eligible." They are different.

Relocating While in a Remote Position

If you are in a remote position and move to a different locality area, your pay changes. Move from San Francisco to rural Montana, and your locality pay drops from 46.01% to 17.57%. You must notify your agency of address changes. They will adjust your pay accordingly.

How to Use Locality Pay Data When Applying to Federal Jobs

Understanding locality pay gives you a real edge when planning your federal job search. Here is how to use it.

Compare total compensation, not just grade. A GS-11 in Houston (36.37% locality) earns $82,476. A GS-12 in the Rest of U.S. earns $85,211. The GS-12 sounds better on paper. But the GS-11 in Houston is just $2,735 less and could be an easier position to land. Factor location into every comparison.

Search USAJobs by location strategically. If you are flexible on where you live, search the same job title in different cities. You might find the same GS-12 role with very different salary ranges based on locality. Target areas where the pay-to-cost ratio works best for your family.

Build your federal resume for the right audience. Whether you target DC, San Diego, or a remote position, your federal resume still needs to match the job posting. Locality pay sets your salary. Your resume sets whether you get the job at all. Use the exact language from the posting. Include hours per week, supervisor info, and detailed duties. That is what gets you referred.

For veterans exploring which federal job series to search on USAJobs, knowing locality pay helps you compare offers across series and locations.

What to Do Next

Locality pay is one of the most important pieces of your federal salary. Now you know how it works. Here is what to do with this info.

First, pick 2 or 3 cities where you would actually live. Look up their locality rates on OPM.gov. Then search USAJobs for your target job series in those areas. Compare the salary ranges side by side. Factor in state taxes and rent costs. That gives you your real earning power.

Second, if you get an offer, know that you can negotiate your GS level and starting step before accepting. Locality pay sets the baseline, but your starting step determines where you land within that range. Third, make sure your federal resume is ready to compete. Locality pay decides your salary. But your resume decides if you get hired. A strong federal resume includes hours per week, supervisor contact info, and duty descriptions that match the job posting word-for-word. BMR's federal resume builder handles the formatting and keyword matching so you can focus on landing the right job in the right city.

Third, think long-term. If you plan a 20-year federal career, your locality area during those final three years shapes your retirement. Start planning now. A higher locality rate at the end of your career pays off for the rest of your life.