Raise Calculator
See exactly how much more take-home pay you'll get from a salary increase
💡 Understanding Your "Real" Raise
A $5,000 raise doesn't mean $5,000 more in your pocket. After federal taxes (at your marginal rate), FICA (7.65%), and state taxes, you typically keep 60-75% of a raise. Higher earners in higher brackets may keep less.
Before Raise
After Raise
Your raise stays within the same bracket
📚 Understanding Raises and Taxes
The "Tax Bracket" Myth
A common misconception is that moving into a higher tax bracket means ALL your income is taxed at the higher rate. In reality, only the income above the bracket threshold is taxed at the higher rate. A raise is always worth taking.
Marginal vs Effective Tax Rate
Your marginal rate is the rate on your next dollar of income. Your effective rate is your total tax divided by total income—it's always lower. A $5k raise at 22% marginal costs ~$1,100 in federal tax.
FICA is Unavoidable (Mostly)
Social Security (6.2%) and Medicare (1.45%) apply to your raise just like regular wages. These can't be reduced with deductions. However, SS tax stops once you earn $184,500 (2026).
Ways to Keep More
Increase your 401(k) contribution with your raise—it reduces taxable income. HSA contributions help too. Your employer match on extra 401(k) contributions is essentially free money on top of your raise.
❓ Frequently Asked Questions
Will a raise push me into a higher tax bracket?
Maybe, but that's not a bad thing. Only the dollars above the bracket threshold are taxed at the higher rate. You'll always take home more money after a raise.
Why do I keep less than 70% of my raise?
Between federal marginal tax (12-37%), FICA (7.65%), and state taxes (0-13%+), it's common to keep 55-75% of a raise depending on your income level and state.
Should I increase my 401(k) when I get a raise?
Yes! Increasing your 401(k) contribution reduces your taxable income, and you won't miss money you never saw. Plus, any employer match is essentially a bonus on your raise.
Is there a point where a raise isn't worth it?
No. Due to how marginal tax brackets work, you always take home more money after a raise. Even at the highest bracket (37%), you still keep 63% of each additional dollar.