Pay Raise Calculator

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

Our Pay Raise Calculator helps you understand the real impact of a salary increase on your take-home pay. It accounts for taxes and deductions, giving you a clear picture of your new net income and how much extra money you'll actually see in each paycheck.

The calculator first determines your new gross annual salary. It then applies federal, state (if applicable), and local income taxes, as well as FICA (Social Security and Medicare) taxes, based on your filing status and provided deduction information. Finally, it subtracts any pre-tax or post-tax deductions to arrive at your new net pay.

Remember that a higher gross pay can push you into a higher tax bracket, potentially increasing your tax liability. Don't forget to factor in any changes to pre-tax deductions like 401(k) contributions, as these can significantly impact your take-home pay.

Example: Sarah's $5,000 Raise

  1. 1 Sarah currently earns $60,000 annually. She receives a $5,000 raise, bringing her new salary to $65,000. She's single, claims one allowance, and contributes 5% of her gross pay to her 401(k).
  2. 2 The calculator first determines Sarah's new gross annual salary ($65,000). It then calculates estimated federal income tax, FICA taxes, and state income tax based on her inputs. Finally, it subtracts her 401(k) contribution (5% of $65,000) to find her new net pay.
  3. 3 After taxes and deductions, Sarah's new annual net pay is estimated to be $48,750, an increase of $3,750 per year, or approximately $144.23 per bi-weekly paycheck.
  4. 4 While Sarah received a $5,000 raise, her take-home pay increased by $3,750 annually due to taxes and her continued 401(k) contributions. This calculator helps her understand the real financial benefit of her raise.

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

Frequently Asked Questions

How much of my raise will I actually take home?
Depending on your tax bracket, you will keep 60-78% of your raise after federal income tax, FICA taxes, and state taxes. 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 (around 2-3%) is effectively a pay cut in real terms.

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