Pay Raise

Pay Raise Calculator

A 5% raise doesn’t add 5% to your paycheck. See the real after-tax increase in your take-home pay — per year and per paycheck — for 2026.

Pay Raise Calculator

See what a raise actually adds to your paycheck — after taxes, not just on paper.

Take-home uses 2026 federal, FICA, and state tax, standard deduction, no pre-tax deductions. Your exact figure depends on 401(k)/health elections.

Why Your Raise Feels Smaller Than It Looks

Your raise is quoted in gross dollars, but taxes come out before it reaches you. Federal income tax, Social Security (6.2%), Medicare (1.45%), and state tax all apply to the new money — so you keep only part of the headline number. On most raises, workers take home roughly 65–80% of the gross increase, depending on their bracket and state.

Marginal vs. Average Tax on a Raise

A raise is taxed at your marginal (top) rate, which is higher than your average rate — that’s why the percentage you keep on the raise is lower than the percentage you keep on your whole salary. It does not mean a raise ever leaves you with less money overall; only the new dollars are taxed at the higher rate.

Make the Most of a Raise

Because you were already living on the old take-home, the after-tax raise is prime savings fuel. Directing even part of it into a 401(k) (pre-tax) both builds retirement savings and lowers your taxable income — softening the tax bite the calculator shows.

Model your full paycheck with deductions →

Frequently Asked Questions

How much of a raise do you actually keep after taxes?

Typically 65–80% of the gross increase, because raises are taxed at your marginal rate plus FICA and any state tax. The calculator shows your exact keep-rate.

How do I calculate my new salary after a raise?

For a percentage raise, multiply your current salary by (1 + raise% / 100). For a flat raise, add the dollar amount. The calculator also converts it to after-tax take-home per paycheck.

Does a raise put me in a higher tax bracket and cost me money?

No. Only the income above each bracket threshold is taxed at the higher rate, so a raise always increases your take-home — just not by the full gross amount.

How much is a 5% raise on $65,000?

A 5% raise on $65,000 is $3,250 gross per year; after taxes you keep roughly two-thirds to three-quarters of that. Enter your state and status above for the exact figure.

Related

Salary take-home calculator · Net-to-gross calculator · Take-home by state · How much tax is taken out

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