Raise Calculator
The raise calculator translates a percent or dollar raise into the only number that really matters: how much more lands in your bank account. Enter your current salary, the raise you've been offered (or are negotiating for), your filing status, and your pay schedule. The result shows your new gross pay alongside your post-tax take-home — annually, monthly, and per paycheck — so you can see the gap between the headline raise and the cash you'll actually spend.
Where each dollar of salary goes
Before the raise you took home $57,458. After, you take home $60,072 — an increase of $2,614 after federal tax, FICA, and 5% state tax.
Headline raise vs. take-home raise
The grey bar is what HR put in writing. The copper bar is what hits your bank account. You keep about 65¢ of every new dollar.
How to Use This Raise Calculator
- 1Current annual salary — Enter your current gross salary before any taxes or deductions. This is the full base pay number on your offer letter, not your take-home.
- 2Raise (percent or dollar) — Toggle between a percent raise (e.g. 5%) or a flat dollar bump (e.g. $7,500). Use the dollar mode for promotion bumps and merit increases stated as a number, not a rate.
- 3Pay frequency — Pick how often you're paid: weekly (52 paychecks), biweekly (26), semimonthly (24), or monthly (12). This only changes how the per-paycheck math is sliced — your annual total is identical.
- 4Filing status — Choose Single or Married Filing Jointly. The brackets we use are the projected 2026 federal income tax brackets from the IRS.
- 5State tax rate (%) — Enter a flat state income tax rate. Set to 0 for no-income-tax states like Texas, Florida, or Washington. For brackets-based states, use your effective rate from last year's return as a quick approximation.
- 6Pre-tax deductions ($/yr) — Total annual contributions to pre-tax accounts (traditional 401(k), HSA, FSA). These reduce your federal taxable income and lower the tax on the raise.
How a Raise Actually Shows Up in Your Paycheck
A 5% raise is not 5% more take-home pay. Federal income tax is progressive, so the new dollars get taxed at your marginal rate (which is higher than your effective rate). FICA takes another 7.65% off the top until you hit the Social Security wage base. State income tax adds another bite in most states. The result: a raise that's worth $5,000 on paper typically delivers $3,200–$3,800 of actual spending power.
Federal tax is applied to (Gross − Pre-tax) using the 2026 IRS brackets. FICA is 6.2% Social Security on wages up to $181,800 plus 1.45% Medicare on all wages, with an extra 0.9% Additional Medicare above $200K single / $250K MFJ. State tax is approximated as a flat percent of taxable income.
On a $80,000 salary in a state with 5% income tax, a 5% raise ($4,000) increases gross pay by $4,000/year. After 22% marginal federal, 7.65% FICA, and 5% state tax, you keep about $2,614 — roughly $109 more per biweekly paycheck. The headline raise was $4,000; the take-home raise is $2,614.
Why a 5% raise isn't 5% more take-home
Your raise is taxed at your marginal rate, not your effective rate. If you're in the 22% federal bracket with 5% state and 7.65% FICA, every new dollar loses about 35 cents to taxes — so a 5% gross raise is closer to 3.25% in net pay. A raise rarely pushes your whole income into a higher bracket, but it does push some of the new dollars there.
Percent vs. flat-dollar raises
Percent raises preserve the gap between higher and lower earners — a 4% raise is $4,000 to a $100K worker but $1,600 to a $40K worker. Flat-dollar raises (e.g. 'everyone gets $2,500') are mildly progressive. When negotiating, ask for the format that benefits your situation, and always confirm whether a quoted percent applies to base pay or total compensation.
The cost-of-living problem
Inflation in 2024 ran around 2.9%. A 3% raise covers inflation but leaves real wages flat. To gain real ground, your raise needs to clear inflation plus FICA plus your marginal tax rate. The going market rate for a strong merit raise in 2026 is 3.5–4.5%; promotions or job changes typically deliver 8–20%.
What to do with a raise
Lifestyle creep is the silent killer of raises — your spending quietly rises to absorb the new pay. The cleanest defense: redirect the entire after-tax raise to savings before it ever hits checking. A 5% raise on $80K, automated into a 401(k) match or a high-yield savings account, can compound to six figures over a career.
Raise Calculator Examples
| Scenario | Inputs | Result | Note |
|---|---|---|---|
| $60K salary, 4% raise (Single, 5% state) | Salary: $60,000 Raise: 4% Filing: Single | +$1,569/yr | About $60 more per biweekly paycheck. Headline raise was $2,400. |
| $95K salary, $10K bump (Single, 5% state) | Salary: $95,000 Raise: $10,000 Filing: Single | +$6,535/yr | About $251 more per biweekly paycheck. Federal marginal rate: 22%. |
| $150K salary, 6% raise (MFJ, 0% state) | Salary: $150,000 Raise: 6% Filing: MFJ | +$6,232/yr | About $239 more per biweekly paycheck. Federal marginal rate: 22%. |
To project what investing your entire raise into a retirement account could become, use our Compound Interest Calculator.
Related tools you might find useful: Compound Interest Calculator, Savings Goal Calculator, Emergency Fund Calculator.
Frequently asked questions
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