Pay Raise Calculator

Calculate the real impact of a pay raise after taxes. See how much extra take-home pay you'll actually receive.

By Konstantin Iakovlev · Updated September 2026 · Source: IRS — Publication 15 (Circular E), Employer's Tax Guide

$
Raise Type
%

New Salary

$78,750.00

Raise Amount

$3,750.00

5.00% raise

Additional Take-Home (Monthly)

$219.84

Effective Raise After Taxes

3.52%

Take-Home Comparison

Old | New
Gross Salary$75,000.00 | $78,750.00
Federal Income Tax$7,670.00 | $8,495.00
FICA$5,737.50 | $6,024.38
State Tax$0.00 | $0.00
Annual Take-Home$61,592.50 | $64,230.63
Monthly Take-Home$5,132.71 | $5,352.55

Of your $3,750.00 raise, you keep $2,638.13 after taxes. The marginal tax rate on your raise is 29.65%.

Use the Pay Raise Calculator above to calculate your results. Enter your values and see instant results — all calculations run in your browser.

Disclaimer: This calculator is for informational purposes only and does not constitute tax, financial, or legal advice. Results are estimates based on the information you provide and current rates. Always consult a qualified tax professional or financial advisor for advice specific to your situation.

How It Works

A raise rarely adds as much to your paycheck as the gross number suggests. This tool translates a salary increase into real take-home terms, showing your new net income and the extra cash you can expect to see each month once taxes are accounted for.

The calculation runs twice, on your current salary and on the new one. Each time it applies 2026 federal income tax after the standard deduction for your filing status, FICA for Social Security (up to the $184,500 wage base) and Medicare, and state income tax from the state's own 2026 brackets, standard deduction and exemptions or credits for the state you pick, the same state calculation the paycheck calculator uses. The difference between the two take-home figures is what the raise adds, shown per year and per month. There are no inputs for local taxes or for 401(k) and other deductions.

Bear in mind that a higher gross can lift part of your income into a higher bracket, nudging your liability up. It is also worth revisiting pre-tax contributions such as your 401(k), since adjusting them alongside a raise can meaningfully change how much actually reaches your bank account.

Example: Sarah's $5,000 Raise

  1. 1 Sarah earns $60,000, files as single and lives in Texas, which has no state income tax. She gets a $5,000 raise to $65,000.
  2. 2 Before the raise: taxable income is $60,000 - $16,100 = $43,900, federal income tax $5,020 and FICA $4,590, leaving $50,390 of take-home pay.
  3. 3 After the raise: taxable income is $48,900, federal income tax $5,620 and FICA $4,972.50, leaving $54,407.50.
  4. 4 She keeps $4,017.50 of the $5,000 (80.35%), about $334.79 a month or $154.52 per biweekly paycheck, because the raise is taxed at 19.65%: her 12% federal bracket plus 7.65% FICA. A 401(k) deferral out of the raise would lower both the take-home gain and the tax on it.

Source: IRS — Publication 15 (Circular E), Employer's Tax Guide · Last updated: September 2026

Frequently Asked Questions

How much of my raise will I actually take home?
Depending on your tax bracket, most workers keep roughly 60-82% of a raise after federal income tax, FICA taxes, and state taxes; in the 12% bracket with no state tax it is 80.35%. Someone in the 22% federal bracket with 5% state tax and 7.65% FICA keeps about 65% of each additional dollar.
Will a raise push me into a higher tax bracket?
Only the income above the bracket threshold is taxed at the higher rate. A raise never results in less take-home pay overall. For example, if you cross into the 24% bracket, only the dollars above that line are taxed at 24%.
What is a good pay raise percentage?
Average annual raises are 3-5%. A raise of 5-7% is considered above average, and 10%+ typically comes with a promotion or job change. Anything below the inflation rate is effectively a pay cut in real terms; consumer prices (CPI-U) rose 3.4% in the 12 months to August 2026, according to the BLS.

You might also need

Paycheck Calculator 2026 — Free Take-Home Pay Estimator

Calculate your take-home pay after federal and state taxes, FICA, and deductions for all 50 states. Free, instant results based on 2026 tax rates.

Salary to Hourly Calculator

Convert annual salary to hourly rate and vice versa. See daily, weekly, biweekly, and monthly pay breakdowns.

Bonus Tax Calculator

Calculate tax withholding on your bonus. See net bonus after federal (22% flat or aggregate method), FICA, and state taxes.