Pay Raise Calculator
Calculate your salary increase amount, percentage change, monthly and biweekly differences, and compare your raise against inflation to see your real purchasing power gain.
Pay Raise Calculator Tool
Enter your current salary and either a raise percentage or your new salary amount to instantly calculate the full breakdown of your pay increase. This calculator handles annual, monthly, biweekly, and weekly figures so you can see exactly how your raise translates to each paycheck.
How to Calculate a Pay Raise
Calculating a pay raise involves straightforward arithmetic, but understanding the full picture requires looking at multiple angles. Whether your employer quoted you a percentage or a flat dollar increase, the math works the same way in reverse.
Percentage-Based Calculation
When you know the raise percentage, multiply your current salary by the percentage (as a decimal) to get the dollar increase. For a $60,000 salary with a 4% raise: $60,000 x 0.04 = $2,400 annual increase, making your new salary $62,400.
Dollar-Based Calculation
When you know the new salary, subtract the old salary to get the increase, then divide by the old salary and multiply by 100 to find the percentage. Going from $60,000 to $63,500 means a $3,500 increase, which is ($3,500 / $60,000) x 100 = 5.83%.
Converting Annual to Paycheck
Your annual raise divides differently depending on pay frequency. A $2,400 annual raise translates to $200 per month, $100 per semi-monthly paycheck, $92.31 per biweekly paycheck, or $46.15 per weekly paycheck. Many people are surprised at how a seemingly large percentage translates to smaller per-paycheck amounts, especially after taxes.
Inflation-Adjusted Raise Calculator
A raise that matches inflation is not actually a raise in purchasing power. This section helps you understand the real value of your pay increase by accounting for the rising cost of goods and services.
The real raise percentage is calculated using the Fisher equation: Real Rate = ((1 + Nominal Rate) / (1 + Inflation Rate)) - 1. This gives a more precise result than simply subtracting inflation from your raise percentage, though the difference is small at typical rates.
Tax Impact of Your Raise
Understanding how a raise affects your taxes is important for setting realistic expectations about your actual take-home increase. The United States uses a progressive tax system, meaning only the portion of income within each bracket is taxed at that bracket's rate.
A common misconception is that moving into a higher tax bracket means all your income is taxed at the higher rate. That is not how progressive taxation works. Only the dollars above the bracket threshold are taxed at the new rate. Your raise will always increase your take-home pay, even if part of it falls into a higher bracket.
2024-2025 Federal Tax Brackets (Single Filer)
| Tax Rate | Income Range | Tax Owed |
|---|---|---|
| 10% | $0 - $11,600 | 10% of income |
| 12% | $11,601 - $47,150 | $1,160 + 12% over $11,600 |
| 22% | $47,151 - $100,525 | $5,426 + 22% over $47,150 |
| 24% | $100,526 - $191,950 | $17,168.50 + 24% over $100,525 |
| 32% | $191,951 - $243,725 | $39,110.50 + 32% over $191,950 |
| 35% | $243,726 - $609,350 | $55,678.50 + 35% over $243,725 |
| 37% | $609,351+ | $183,647.25 + 37% over $609,350 |
Average Raises by Industry
Knowing what others in your field receive helps you benchmark whether your raise is competitive. According to data from the Bureau of Labor Statistics and various compensation surveys, raise percentages vary significantly across industries.
| Industry | Average Merit Raise | Average Promotional Raise | Total Compensation Growth |
|---|---|---|---|
| Technology / Software | 4.5% - 6.0% | 10% - 20% | 5.5% - 8.0% |
| Healthcare | 3.0% - 4.5% | 8% - 15% | 4.0% - 6.0% |
| Finance / Banking | 3.5% - 5.0% | 10% - 18% | 5.0% - 7.0% |
| Manufacturing | 3.0% - 4.0% | 7% - 12% | 3.5% - 5.0% |
| Education | 2.0% - 3.5% | 5% - 10% | 2.5% - 4.0% |
| Retail / Hospitality | 2.0% - 3.0% | 8% - 15% | 2.5% - 4.0% |
| Government | 2.0% - 3.0% | 5% - 10% | 2.5% - 3.5% |
| Construction | 3.0% - 4.5% | 8% - 14% | 4.0% - 5.5% |
| Energy / Utilities | 3.5% - 5.0% | 8% - 15% | 4.5% - 6.0% |
| Non-Profit | 2.0% - 3.0% | 5% - 10% | 2.5% - 3.5% |
Historical Average Raise Trends (2019-2025)
| Year | Average Merit Increase | Average Total Increase | CPI Inflation | Real Wage Growth |
|---|---|---|---|---|
| 2019 | 3.1% | 3.3% | 1.8% | +1.5% |
| 2020 | 2.8% | 3.0% | 1.2% | +1.8% |
| 2021 | 3.0% | 3.3% | 4.7% | -1.4% |
| 2022 | 3.7% | 4.2% | 8.0% | -3.8% |
| 2023 | 4.1% | 4.5% | 4.1% | +0.4% |
| 2024 | 3.9% | 4.3% | 2.9% | +1.4% |
| 2025 | 3.7% | 4.1% | 2.6% | +1.5% |
Merit Raise vs Promotion Raise
There is a significant difference between a merit raise and a promotional raise, both in magnitude and in what they signal about your career trajectory. Understanding these distinctions helps you evaluate whether the offer on the table is fair.
Merit Raises
A merit raise rewards your ongoing performance in your current role. These typically range from 2% to 5% and are often tied to annual performance reviews. A merit raise acknowledges that you are meeting or exceeding expectations without fundamentally changing your responsibilities or title. Most companies budget for merit increases as part of their annual compensation cycle, with the pool typically set as a percentage of total payroll.
Factors that influence your merit raise include your individual performance rating, your position within the salary range for your role (known as compa-ratio), department budget, and overall company performance. Employees who are lower in their salary band often receive larger percentage increases to move them toward the midpoint.
Promotional Raises
A promotional raise accompanies a change in title, level, or responsibilities. These are larger, typically 8% to 15%, and can go as high as 20% or more for significant jumps in responsibility. Promotions signal a change in what is expected of you and often come with expanded scope, team leadership, or strategic ownership.
Internal promotions tend to offer smaller raises than external moves. Data from compensation research firms consistently shows that changing companies yields salary increases of 10% to 20%, while internal promotions average 10% to 15%. This gap is known as the "loyalty penalty" and is a key reason many professionals change employers every 2 to 4 years.
Comparing the Two
| Factor | Merit Raise | Promotional Raise |
|---|---|---|
| Typical Range | 2% - 5% | 8% - 20% |
| Frequency | Annual | Every 2-4 years |
| Title Change | No | Yes |
| Responsibility Change | Minimal | Significant |
| Negotiability | Limited | Moderate to High |
| Impact on Future Earnings | Incremental | Compounding baseline shift |
Cost of Living Adjustment (COLA)
A Cost of Living Adjustment is a salary increase maintain your purchasing power as prices rise. Unlike merit raises, COLAs are not tied to performance. They are based on economic indicators, most commonly the Consumer Price Index (CPI) published by the Bureau of Labor Statistics.
How COLA Works
The CPI tracks the average change in prices paid by urban consumers for a basket of goods and services including food, housing, transportation, medical care, and education. When the CPI rises by 3%, a full COLA would increase your salary by 3% so that your standard of living remains constant. Social Security recipients receive annual COLA adjustments based on the CPI-W (Consumer Price Index for Urban Wage Earners and Clerical Workers).
COLA by Region
Cost of living varies dramatically by location. An employee in San Francisco needs roughly 80% more income than someone in Dallas to maintain the same standard of living. Many companies adjust salaries based on geographic pay zones, particularly with the rise of remote work. If you are relocating, it is important to factor in regional cost differences rather than focusing solely on the nominal salary change.
| Metro Area | Cost of Living Index | Equivalent of $75,000 National Average |
|---|---|---|
| San Francisco, CA | 180 | $135,000 |
| New York City, NY | 170 | $127,500 |
| Los Angeles, CA | 150 | $112,500 |
| Seattle, WA | 145 | $108,750 |
| Boston, MA | 140 | $105,000 |
| Denver, CO | 120 | $90,000 |
| Chicago, IL | 110 | $82,500 |
| Austin, TX | 105 | $78,750 |
| Dallas, TX | 100 | $75,000 |
| Columbus, OH | 92 | $69,000 |
How to Negotiate a Raise
Negotiating a raise is one of the highest-return activities you can undertake in your career. A single successful negotiation that adds $5,000 to your base salary compounds over your entire career. Over 20 years with average 3% annual increases, that initial $5,000 translates to roughly $134,000 in additional cumulative earnings.
Step 1 Research Your Market Value
Before any negotiation, you need data. Use salary databases such as the Bureau of Labor Statistics Occupational Outlook Handbook, Glassdoor, Payscale, LinkedIn Salary Insights, and Levels.fyi (for tech). Look for roles with matching titles, experience levels, and geographic locations. Compile a range rather than a single number so you have room to anchor high.
Step 2 Document Your Contributions
Create a concise list of your accomplishments since your last raise or since you were hired. Quantify everything possible: revenue generated, costs saved, projects completed, efficiency gains, team members mentored, and customer satisfaction improvements. Specific numbers are far more persuasive than vague descriptions of effort.
Step 3 Choose Your Timing
Request a meeting specifically to discuss compensation rather than bringing it up at the end of a regular one-on-one. The best timing is typically after a successful project completion, during a formal review cycle, or when you have taken on responsibilities beyond your current role. Avoid asking during company-wide budget freezes, layoffs, or periods of financial difficulty.
Step 4 Present Your Case
Lead with your value and contributions, not personal financial needs. Frame the conversation around market alignment and your growing impact. Present your research on market rates and your documented achievements. Be direct about the number you are seeking and be prepared to explain how you arrived at that figure.
Step 5 Handle Objections
If the answer is a budget limitation, ask about the timeline for the next opportunity and whether you can get a commitment in writing. If performance is cited, ask for specific feedback and a clear path to the raise. Consider negotiating for non-salary benefits if the base salary is truly constrained: signing bonus, extra PTO, remote work flexibility, professional development budget, or accelerated review timeline.
When to Ask for a Raise
Timing significantly affects the outcome of a raise request. While your performance is the primary factor, organizational context and timing create the conditions for a positive reception.
Best Times to Ask
Annual performance review season is the most natural window since budgets are being set and managers expect compensation discussions. Post-project completion, especially for high-visibility initiatives, is another strong moment. If you have been asked to take on a departing colleague's responsibilities or have been given a new title without a corresponding pay increase, that is an appropriate time to discuss compensation.
Company milestones such as a strong earnings quarter, new funding round, or a successful product launch create a positive atmosphere where managers have both the budget and the goodwill to approve increases. If you receive an external offer, this can be a negotiating tool, though it should be used carefully since it signals you are considering leaving.
Times to Avoid
Avoid asking immediately after a company announces layoffs, restructuring, or missed financial targets. Monday mornings, end-of-day Fridays, and the last week before major deadlines are also suboptimal. If your manager is visibly stressed or dealing with a crisis, wait for a calmer period. Asking too soon after your last raise (less than 6 months) can come across as impatient unless your responsibilities have changed dramatically.
Raise Frequency and Timing
Most companies operate on an annual review and raise cycle, though the specific timing varies. Understanding your company's compensation timeline helps you prepare and set expectations.
Common Corporate Raise Cycles
| Cycle Type | Review Period | Effective Date | Common In |
|---|---|---|---|
| Calendar Year | November - December | January 1 | Most large corporations |
| Fiscal Year | Varies by company | Start of fiscal year | Companies with non-calendar fiscal years |
| Anniversary Date | Around hire date | Hire anniversary | Small to mid-size companies |
| Quarterly | End of each quarter | Start of next quarter | High-growth startups, sales roles |
If your company uses a calendar-year cycle, begin preparing your case in October. Compile your achievements, research market data, and schedule a preliminary conversation with your manager in November so they can factor your request into budget planning. By the time formal decisions are made in December, your case will already be on the table.
How Often Should You Get a Raise?
At minimum, you should receive annual cost-of-living adjustments. Without any raise for two or more years, your real income is declining due to inflation. Beyond COLA, merit increases every 12 to 18 months are standard for solid performers. High performers at growing companies may see increases every 6 to 12 months. If you have gone more than two years without a raise and are meeting or exceeding expectations, it is time to have a direct conversation or consider external opportunities.
Understanding Pay Raise Math
Pay raises compound over time, which means even small percentage differences in your raise have significant long-term effects. This is one of the most under-appreciated aspects of compensation growth.
The Power of Compounding Raises
Consider two employees who both start at $50,000. Employee A receives 3% annual raises while Employee B receives 5% annual raises. After 10 years, Employee A earns $67,196 while Employee B earns $81,445. That is a $14,249 annual difference from just 2 percentage points. Over the full 10 years, Employee B earned $78,914 more in cumulative income. After 20 years, the cumulative difference exceeds $260,000.
| Year | 3% Annual Raise | 5% Annual Raise | Annual Difference |
|---|---|---|---|
| Start | $50,000 | $50,000 | $0 |
| Year 5 | $57,964 | $63,814 | $5,850 |
| Year 10 | $67,196 | $81,445 | $14,249 |
| Year 15 | $77,898 | $103,946 | $26,048 |
| Year 20 | $90,306 | $132,665 | $42,359 |
| Cumulative Total | $1,343,519 | $1,653,298 | $309,779 |
Percentage on Percentage
An important mathematical note: percentage raises compound on each other. If you receive a 10% raise followed by a 10% cut, you do not return to your original salary. Starting at $50,000, a 10% raise brings you to $55,000. A 10% cut from $55,000 leaves you at $49,500, which is $500 less than where you started. This asymmetry means that pay cuts are more damaging than the equivalent raise is beneficial.
Common Raise Scenarios
Here are pre-calculated examples for common salary and raise combinations to give you quick reference points.
Raises on a $50,000 Salary
| Raise % | Annual Increase | New Salary | Monthly Increase | Biweekly Increase |
|---|---|---|---|---|
| 2% | $1,000 | $51,000 | $83.33 | $38.46 |
| 3% | $1,500 | $51,500 | $125.00 | $57.69 |
| 4% | $2,000 | $52,000 | $166.67 | $76.92 |
| 5% | $2,500 | $52,500 | $208.33 | $96.15 |
| 8% | $4,000 | $54,000 | $333.33 | $153.85 |
| 10% | $5,000 | $55,000 | $416.67 | $192.31 |
| 15% | $7,500 | $57,500 | $625.00 | $288.46 |
Raises on a $75,000 Salary
| Raise % | Annual Increase | New Salary | Monthly Increase | Biweekly Increase |
|---|---|---|---|---|
| 2% | $1,500 | $76,500 | $125.00 | $57.69 |
| 3% | $2,250 | $77,250 | $187.50 | $86.54 |
| 4% | $3,000 | $78,000 | $250.00 | $115.38 |
| 5% | $3,750 | $78,750 | $312.50 | $144.23 |
| 8% | $6,000 | $81,000 | $500.00 | $230.77 |
| 10% | $7,500 | $82,500 | $625.00 | $288.46 |
| 15% | $11,250 | $86,250 | $937.50 | $432.69 |
Raises on a $100,000 Salary
| Raise % | Annual Increase | New Salary | Monthly Increase | Biweekly Increase |
|---|---|---|---|---|
| 2% | $2,000 | $102,000 | $166.67 | $76.92 |
| 3% | $3,000 | $103,000 | $250.00 | $115.38 |
| 4% | $4,000 | $104,000 | $333.33 | $153.85 |
| 5% | $5,000 | $105,000 | $416.67 | $192.31 |
| 8% | $8,000 | $108,000 | $666.67 | $307.69 |
| 10% | $10,000 | $110,000 | $833.33 | $384.62 |
| 15% | $15,000 | $115,000 | $1,250.00 | $576.92 |
Total Compensation Beyond Base Salary
While a raise in base salary is the most visible form of compensation increase, your total compensation package includes several other components that may be negotiable and can substantially affect your financial position.
Bonuses and Variable Pay
Many companies offer annual bonuses as a percentage of base salary. A typical bonus range for non-executive roles is 5% to 15% of base salary, while management and executive roles may receive 20% to 50% or more. Performance bonuses are usually tied to individual goals and company financial results. If your company offers bonuses, a raise in base salary also increases your bonus potential since the bonus is calculated as a percentage of the higher base.
Sign-on bonuses are one-time payments made when you accept a position or negotiate a retention package. These can range from $2,000 to $50,000 or more, depending on the role and industry. While they do not compound like a base salary increase, they provide immediate financial benefit and can partially compensate when a company cannot meet your base salary request.
Stock Options and Equity Compensation
In the technology and startup sectors, stock options, restricted stock units (RSUs), and equity grants can represent 20% to 60% of total compensation. When evaluating a raise offer, consider whether it includes a stock refresh or additional equity grant. At major technology companies, annual stock refreshes of $20,000 to $100,000 or more are common for experienced engineers and managers. These grants typically vest over 3 to 4 years and can significantly exceed the base salary increase.
When comparing job offers or evaluating a counter-offer, always compare total compensation rather than just base salary. A position with a $10,000 lower base salary but $30,000 in annual equity grants is worth $20,000 more per year in total compensation, assuming the equity has real value.
Benefits and Perks
The monetary value of benefits packages ranges from $10,000 to $30,000 per year for most full-time employees. Health insurance alone may cost your employer $7,000 to $22,000 annually depending on plan type and family coverage. Retirement matching (typically 3% to 6% of salary) adds thousands more. Other valuable benefits include dental and vision insurance, life and disability insurance, health savings account contributions, tuition reimbursement, and wellness programs.
If your employer cannot offer a larger base salary increase, consider negotiating for improved benefits. Additional paid time off (PTO) is worth your daily rate for each extra day. A five-day PTO increase for someone earning $75,000 is worth approximately $1,440 in equivalent compensation. Remote work flexibility, adaptable scheduling, professional development budgets, and accelerated vesting of equity are all non-salary items that carry real financial and lifestyle value.
Salary vs Hourly Considerations
Salaried employees receive a fixed annual amount regardless of hours worked, which means overtime hours reduce the effective hourly rate. Hourly employees benefit from overtime pay (typically 1.5x the regular rate for hours beyond 40 per week). When evaluating a raise, consider your actual hours worked. A 5% raise that comes with an expectation of 10% more hours is effectively a pay cut per hour.
| Component | Typical Range | Negotiable | Compounds Over Career |
|---|---|---|---|
| Base Salary | 60-80% of total comp | Moderate | Yes (through future raises) |
| Annual Bonus | 5-20% of base | Limited | Indirectly (tied to base) |
| Stock / Equity | 0-40% of total comp | Moderate to High | Through refreshes |
| Retirement Match | 3-6% of salary | Rarely | Yes (through higher base) |
| Health Benefits | $7,000-$22,000/year value | Limited | No |
| PTO | 10-25 days | Moderate | No |
| Sign-On Bonus | $2,000-$50,000 | High | No (one-time) |
Raises Across Career Stages
The rate at which your salary grows changes significantly across different career stages. Understanding these patterns helps you set realistic expectations and plan your career moves for maximum financial impact.
Early Career (0-5 Years)
Early-career professionals typically see the fastest salary growth in percentage terms. Starting salaries are lower, and rapid skill development combined with increased responsibility drives above-average raises. It is common to see 8% to 15% annual increases during this phase, especially when changing roles or employers. This is also the period when job-hopping provides the largest salary bumps, as external offers consistently outpace internal raises.
During your first five years, focus on building skills and accumulating quantifiable achievements. Each job change during this phase typically adds 10% to 20% to your salary, far exceeding the 3% to 5% internal merit raise. However, balance this against the value of building a strong reputation and deep expertise at one organization, which pays dividends later in your career.
Mid-Career (5-15 Years)
Mid-career professionals have established expertise and often move into management or senior individual contributor roles. Raises during this phase come from a combination of merit increases (3% to 5%), promotional raises (8% to 15%), and strategic job changes (10% to 25%). Total compensation growth may accelerate as equity and bonus components become a larger portion of the package.
This is the period when specialization and leadership skills have the highest return. Moving into management can add 15% to 30% to your compensation, while becoming a recognized subject matter expert in a high-demand field can command premium rates. Geographic arbitrage (earning a high-cost-of-living salary while living in a lower-cost area through remote work) becomes a strategy during mid-career.
Senior Career (15+ Years)
Senior professionals often see slower percentage growth in base salary but larger absolute dollar increases and greater total compensation through bonuses, equity, and deferred compensation. Executive compensation packages can include base salary, short-term incentive plans, long-term incentive plans, retirement top-ups, and perquisites. At the director level and above, total compensation often grows 5% to 10% annually even when base salary increases only 3% to 4%.
Geographic Salary Differences
Where you work significantly affects both your nominal salary and your purchasing power. Understanding geographic pay differentials is important when evaluating a raise, especially if you are considering relocation or negotiating for remote work.
How Companies Set Geographic Pay Bands
Most mid-to-large companies use geographic pay zones that adjust salary ranges based on cost of labor in different markets. These zones typically define a "Tier 1" market (San Francisco, New York, Seattle) where salaries are 20-40% above the national median, a "Tier 2" market (Boston, Los Angeles, Denver, Chicago) at 10-20% above, and a "Tier 3" market (Dallas, Atlanta, Phoenix, Raleigh) near or slightly above the national median. Smaller cities and rural areas may be in "Tier 4" at 5-15% below the national median.
When evaluating a raise, compare your salary to the range for your specific geographic zone, not just the national average. A $90,000 salary in Austin, Texas is a much stronger position than $90,000 in San Francisco. The cost of housing alone can double or triple between these markets, making the same nominal salary feel very different in practice.
Remote Work and Geographic Arbitrage
The rise of remote work has created opportunities for geographic arbitrage, where you earn a salary benchmarked to a high-cost market while living in a lower-cost area. Some companies maintain location-based pay and adjust salaries if you move to a cheaper area. Others have adopted location-agnostic pay, where salary is based on role and performance regardless of where you live. Understanding your company's policy is important before making relocation decisions.
If your company does adjust for location, moving from a Tier 1 to a Tier 3 market might mean a 10-20% salary reduction. However, if cost of living drops by 30-40%, you come out ahead in purchasing power despite the lower nominal salary. Run the numbers carefully, paying special attention to housing costs, state income tax differences, and any changes to benefits or career advancement opportunities.
| Market Tier | Example Cities | Pay Premium vs National Avg | Cost of Living Index | Real Value |
|---|---|---|---|---|
| Tier 1 | SF, NYC, Seattle | +25-40% | 150-185 | Lower real value |
| Tier 2 | Boston, LA, Denver | +10-20% | 120-145 | Moderate real value |
| Tier 3 | Dallas, Atlanta, Phoenix | 0 to +10% | 95-110 | Good real value |
| Tier 4 | Smaller cities, rural | -5 to -15% | 80-95 | Often highest real value |
Frequently Asked Questions
How do I calculate my pay raise percentage?
Subtract your old salary from your new salary, divide the difference by your old salary, then multiply by 100. For example, going from $50,000 to $53,000 is a 6% raise: ($3,000 / $50,000) x 100 = 6%.
What is the average pay raise in 2025?
According to the Bureau of Labor Statistics, the average annual pay raise in the United States is approximately 3.5% to 4.5% for merit increases. Promotional raises typically range from 8% to 15%, while cost-of-living adjustments average around 2% to 3%.
Is a 5% raise good?
A 5% raise is considered above average for a standard merit increase. When inflation runs at 2-3%, a 5% raise gives you a real purchasing power gain of 2-3%. However, if you took on significant new responsibilities or received a promotion, you may negotiate for 8-15%.
How much is a 3% raise on a $50,000 salary?
A 3% raise on a $50,000 salary equals $1,500 per year, bringing your new salary to $51,500. That works out to $125 more per month or about $57.69 more per biweekly paycheck before taxes.
Should I factor in inflation when evaluating a raise?
Yes. If inflation is 3% and your raise is 3%, your real purchasing power has not changed. Only the portion of your raise that exceeds inflation represents a true increase in your standard of living. This calculator includes an inflation adjustment feature for this reason.
What is the difference between a merit raise and a COLA?
A merit raise is based on your individual job performance and typically ranges from 3% to 5%. A Cost of Living Adjustment (COLA) is keep your salary in line with inflation and is usually tied to the Consumer Price Index (CPI). Many employers provide both, though some only offer one or the other.
How does a raise affect my taxes?
A raise increases your gross income, which may push part of your income into a higher tax bracket. However, only the income within that higher bracket is taxed at the higher rate, not your entire salary. The net benefit of a raise is always positive, though your effective tax rate may increase slightly.
When is the best time to ask for a raise?
The best times to request a raise are during your annual performance review, after completing a major project, when you have taken on additional responsibilities, or when you have a competing job offer. Avoid asking during company layoffs, budget freezes, or periods of poor company performance.
Can I lose money by getting a raise?
No. Under the progressive tax system, a raise always increases your net take-home pay. The myth that a raise can push you into a higher bracket and leave you worse off is false. Only the income above the bracket threshold is taxed at the higher rate. The only rare exception involves means-tested benefits or tax credits that phase out at higher incomes.
How much of my raise will I actually take home?
Depending on your tax bracket and state, you will typically take home 60% to 78% of your raise. Federal taxes take 12% to 37% (based on your marginal bracket), FICA takes 7.65%, and state taxes take 0% to 13% depending on your state. Use the tax impact calculator above for a personalized estimate.