Pay Raise Calculator: Net Take-Home Increase
Use this pay raise calculator to see how much of a raise actually reaches your bank account after federal, FICA, and state tax. Enter old and new salary to know your real take-home increase.
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Gross raise (annual)$0
Net raise (annual)$0
Net raise per month$0
Effective marginal tax0.00%
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How this calculator works
A raise is taxed at your marginal rate — the bracket your last dollar falls into — not your average rate. So the headline raise number always overstates what hits your bank account.
net = gross × (1 − fed% − state% − FICA%)
- FICA
- 7.65% (6.2% Social Security + 1.45% Medicare). High earners over $200K may also owe the 0.9% Additional Medicare Tax.
- fed%
- Your federal marginal bracket — for 2026 the brackets are 10% / 12% / 22% / 24% / 32% / 35% / 37%.
- state%
- Your state's marginal bracket. Use 0% for AK, FL, NV, NH, SD, TN, TX, WA, WY.
This calculator does not account for itemized deductions, retirement contributions, HSA, or the Social Security wage base. For exact federal withholding, see IRS Publication 15.
Source: Federal income brackets — IRS Publication 17. FICA rates — SSA Contribution and Benefit Base.
FAQ
Why does the calculator say I keep so little of my raise?
Raises are taxed at your marginal rate, which combines federal, state and FICA. For most middle-income earners that's 25–32%, so a $5,000 raise typically nets $3,400–$3,750. To improve the ratio, increase pre-tax 401(k) or HSA contributions with the new income.
What federal marginal rate should I enter?
Use the bracket your top dollar of income falls into. For 2026 single filers: 10% up to ~$11.6K, 12% to ~$47.2K, 22% to ~$100.5K, 24% to ~$191.9K, 32% to ~$243.7K, 35% to ~$609K, 37% above. Married-filing-jointly thresholds are roughly double.
Does FICA always apply to a raise?
Social Security tax (6.2%) only applies up to the wage base (~$168,600 in 2024, indexed yearly). Medicare (1.45%) applies to all wages, plus an extra 0.9% on wages over $200K single. If your salary already exceeds the SS wage base, set the FICA portion of your marginal rate to 1.45% only.
How much of a pay raise will I actually take home?
Roughly 65-72% of the gross raise hits your bank account. A $5,000 gross raise with federal effective 12%, FICA 7.65%, and state 5% nets to $5,000 × (1 − 0.2465) = $3,768/year — about $314/month.
Should I negotiate for a one-time bonus or a permanent raise?
A permanent raise compounds — it raises every future paycheck and the base from which future raises are calculated. A $5,000 raise repeated annually compounds to $50,000+ over 10 years. A $5,000 one-time bonus is just $5,000. Always prefer permanent raise.
How much should I save out of my pay raise?
The 'lifestyle creep' trap is spending the raise the day it lands. Best practice: save 50% of any raise. Increase your 401k contribution by half the raise percentage — if you got a 6% raise, bump your 401k from 10% to 13%. The other half funds modest lifestyle improvements.
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