You're five minutes into a phone screen. The candidate interrupts:

"Before we go further—what's the salary range for this role?"

How you respond to this question determines whether you advance a great candidate or lose them immediately.

The wrong answer: "We can discuss that later in the process."

Why it's wrong: In many states, you're legally required to disclose salary ranges when asked. Even if you're not, dodging the question signals you're hiding something—low pay, vague budget, or unwillingness to be transparent.

Here's how to handle salary conversations when candidates ask first—without losing negotiating leverage or violating pay transparency laws.

The Simple Rule: Just Tell Them

When a candidate asks about salary, share your range immediately.

What to say:

"The salary range for this role is $X-$Y, depending on experience and qualifications. Does that align with what you're targeting?"

Why this works:

1. It's legally required in many states. California, Colorado, New York, Washington, and 17+ other states require salary range disclosure when requested.
2. It builds trust. Transparency signals confidence and fairness.
3. It saves time. If you're $40K apart, better to know now than after three rounds of interviews.
4. It tests their expectations. Their response tells you whether they're realistic, flexible, or out of range.

Don't play games. Don't make candidates guess. Don't wait until the offer stage to reveal salary. Just tell them upfront.

What If Your Range Is Below Market?

Sometimes your budget is tight, and your range is below what similar roles pay elsewhere.

Don't hide it. Acknowledge it and sell the non-salary value.

What to say:

"The range for this role is $X-$Y, which I know is slightly below some other companies for similar roles. Here's why candidates still get excited about this opportunity:

• [Specific benefit: equity, remote flexibility, career growth, learning opportunities, strong team, etc.]
• [Another differentiator]

We're not the highest-paying option, but candidates who prioritize [X] tend to find this role really compelling. Does that resonate with you, or is base salary the primary factor for you?"

Why this works:

• It's honest. Candidates respect transparency.
• It reframes the conversation. You're selling the total package, not just salary.
• It qualifies the candidate. If they're only motivated by salary, they'll self-select out. If they value your differentiators, they'll stay engaged.

What NOT to say:

❌ "We prefer to discuss salary later."

❌ "Salary is negotiable." (This is vague and unhelpful.)

❌ "What are you currently making?" (Illegal in many states.)

What If They're Out Of Range?

Sometimes candidates share their target salary, and it's 30-40% higher than your budget.

Don't try to talk them into accepting less. It won't work.

What to say:

"Thanks for sharing that. Unfortunately, our budget for this role is $X-$Y, which is significantly below your target. I don't want to waste your time by moving forward if the salary doesn't work.

If flexibility exists on your end given [specific value prop], I'm happy to continue the conversation. But if $Z is your floor, I completely understand—and I appreciate you being upfront about it."

Why this works:

• It respects their time. You're not stringing them along.
• It tests their flexibility. Sometimes candidates say "$150K" but would accept "$130K for the right opportunity."
• It preserves the relationship. They'll remember you treated them with respect, even though the salary didn't align.

What happens next:

• They say "I'm flexible" → Continue the conversation, but revisit salary expectations before making an offer.
• They say "Thanks, but that won't work" → End the process politely and keep them in your network for future roles with bigger budgets.

How To Negotiate When They Ask For More Than Your Range

You extend an offer at the top of your range: $120K.

The candidate counters: "I was hoping for $135K."

Option 1: Increase the offer (if you have budget flexibility)

If they're exceptional and you can justify it, increase the offer.

What to say:

"Let me see what I can do. Based on your experience and the value you'd bring, I think I can make a case for $130K. Would that work?"

Option 2: Hold firm but add non-cash value

If you can't increase base salary, add other value.

What to say:

"Unfortunately, $120K is the top of the range for this role, and I don't have flexibility to go higher on base salary. However, I can offer:

• [Signing bonus, additional PTO, remote flexibility, equity, earlier performance review, professional development budget, etc.]

Would any of those help bridge the gap?"

Option 3: Explain why you can't move

If you're truly maxed out and have no flexibility, explain clearly.

What to say:

"I hear you, and I understand $135K is your target. Unfortunately, our range for this role is capped at $120K due to internal equity—we have others in similar roles at this level, and we need to maintain consistency.

I know that may not be what you were hoping for, and I completely understand if you need to decline. But if $120K works for you given [role, team, growth opportunity, etc.], we'd love to have you."

Why this works:

• It's honest. You're not playing games or pretending you "need approval" when you know the answer is no.
• It provides context. Internal equity is a legitimate reason, and candidates understand it.
• It puts the decision in their hands. They can accept, decline, or counter with non-salary requests.

What To Never Say During Salary Negotiations

❌ "What are you currently making?"

Illegal in California, Colorado, Connecticut, Delaware, Hawaii, Illinois, Maine, Maryland, Massachusetts, Nevada, New Jersey, New York, Oregon, Rhode Island, Vermont, Virginia, Washington, and several cities.

❌ "We can't afford you."

This sounds defeatist and signals weak negotiation. Instead: "Unfortunately, our budget for this role is capped at $X."

❌ "That's way more than we pay our other [role]."

Never compare candidates to each other or reveal what others make. Privacy violation and legally risky.

❌ "You should just be grateful for the offer."

Condescending and tone-deaf. Candidates have every right to negotiate.

❌ "Take it or leave it."

Ultimatums burn bridges and damage employer brand. Even if you can't move, phrase it respectfully: "Unfortunately, this is the best we can offer."

How To Ask About Salary Expectations Legally

You can't ask about salary history, but you CAN ask about expectations.

Legal phrasing:

✅ "What's your target salary range for this role?"

✅ "What salary range are you considering for your next role?"

✅ "The range for this position is $X-$Y. Does that align with your expectations?"

Illegal phrasing (in many states):

❌ "What's your current salary?"

❌ "What did you make at your last job?"

❌ "Can you provide your W-2 or pay stubs?"

If a candidate voluntarily shares their current salary without you asking, you can consider it—but you cannot ask follow-up questions about their salary history.

What If They Accept The Offer Then Try To Renegotiate?

Sometimes candidates verbally accept an offer, then come back and ask for more before signing.

How to handle:

Option 1: If the request is reasonable and you have flexibility

"I appreciate you being upfront. Let me see if I can add [X]. I'll get back to you by [date]."

Option 2: If you already negotiated and they're pushing again

"I understand you'd like [more money/better benefits]. Unfortunately, we've already maxed out what we can offer based on budget and internal equity. The offer we extended is our best and final offer.

I need to know by [date] whether you're accepting as-is, because we have other candidates we need to get back to. Let me know."

Why this works:

• It's firm but respectful.
• It creates urgency. If they're playing games or stalling for another offer, this forces a decision.
• It protects your process. You can't wait indefinitely while they shop your offer to other companies.

If they decline, move on quickly. Candidates who repeatedly renegotiate after accepting are high-risk hires.

The Bottom Line

How to handle salary conversations when candidates ask first:

1. Share your range immediately. Don't dodge, delay, or deflect.
2. If your range is below market, acknowledge it and sell the non-salary value.
3. If they're out of range, end the conversation respectfully. Don't waste their time or yours.
4. When negotiating offers, be clear about what's flexible and what's not.
5. Never ask about salary history. It's illegal in many states and damages trust.

What candidates want:

• Transparency early
• Honest communication
• Respect for their time

What candidates hate:

• "We'll discuss salary later"
• Bait-and-switch (high range in the JD, low offer at the end)
• Games and delays

The best recruiters treat salary conversations as relationship-building, not adversarial negotiations.

Be transparent. Be respectful. Be clear about what you can and can't offer.

Candidates will remember how you handled the money conversation—and they'll tell others.