Pay Raise Calculator With Taxes
Your raise is not what lands in your bank account. This calculator subtracts federal income tax, Social Security, Medicare and state tax to show what you actually keep — per year and per paycheck.
How the tax on a raise is worked out
This is a marginal calculation, not a tax return. The calculator works out your total federal income tax and FICA on your old salary, then on your new salary, and reports the difference. That difference is the true cost of the raise — which is the number you want, because everything below the raise is taxed the same as it was before.
- Federal income tax uses the 2026 brackets published by the IRS, applied to your salary minus the standard deduction ($16,100 single, $32,200 married filing jointly, $24,150 head of household) and minus any pre-tax deductions you enter.
- Social Security is 6.2% of wages up to $184,500, the 2026 wage base. Above that it stops.
- Medicare is 1.45% of all wages, plus an additional 0.9% above $200,000 (single) or $250,000 (married filing jointly).
- State income tax is included for states with no income tax and states with a single flat rate. States with graduated brackets are flagged and excluded rather than guessed at.
Pre-tax deductions behave the way they really do: a 401(k) deferral lowers your federal taxable income but not your Social Security and Medicare wages.
What people keep from a typical raise
| Raise | Gross | Federal | FICA | You keep | Tax rate |
|---|---|---|---|---|---|
| 3% on $45,000 | $1,350 | $162.00 | $103.27 | $1,084.73 | 19.6% |
| 3% on $60,000 | $1,800 | $216.00 | $137.70 | $1,446.30 | 19.6% |
| 5% on $85,000 | $4,250 | $935.00 | $325.13 | $2,989.88 | 29.7% |
| 5% on $120,000 | $6,000 | $1,404 | $459.00 | $4,137 | 31.1% |
| 5% on $180,000 | $9,000 | $2,160 | $409.50 | $6,430.50 | 28.5% |
Notice the last row: the $180,000 raise crosses the Social Security wage base, so part of it escapes the 6.2% — which is why its effective rate is lower than the row above despite a higher income-tax bracket.
The bracket myth
The most common worry about a raise is that it will "push you into a higher bracket" and leave you worse off. It cannot. US federal income tax is marginal: each bracket rate applies only to the income inside that bracket. If a $2,000 raise pushes $500 past the 22% threshold, that $500 is taxed at 22% and the other $1,500 stays at 12%. You keep less of the last $500 than of the first $1,500 — but you still keep more money overall than before the raise.
There are real cliff effects in the US tax code, but they sit in credits and subsidies rather than in brackets: the premium tax credit, student loan repayment plans, and some state and local benefit programmes. If you are near one of those thresholds it is worth checking separately; the brackets themselves will never punish you for earning more.
State income tax on your raise
Where you live can change what you keep by several percentage points. Nine states levy no income tax on wages: Alaska, Florida, New Hampshire, Nevada, South Dakota, Tennessee, Texas, Washington, Wyoming. A raise there is only touched by federal tax and FICA.
Fifteen states charge a single flat rate on all taxable income, which makes the effect of a raise easy to predict — Arizona 2.50%, Colorado 4.40%, Georgia 5.19%, Iowa 3.80%, Idaho 5.30%, Illinois 4.95%, Indiana 2.95%, Kentucky 3.50%, Louisiana 3.00%, Michigan 4.25%, Mississippi 4.00%, North Carolina 3.99%, Ohio 2.75%, Pennsylvania 3.07%, Utah 4.45%. Those rates are included in the estimate above.
The remaining states use graduated brackets, often with their own deductions and credits. Rather than produce a plausible-looking but wrong number, the calculator flags those states and leaves state tax out — treat the result as federal plus FICA only, and subtract your state's marginal rate yourself.
Raise and taxes FAQ
How much of my raise will I keep after taxes?
Usually 70–80% in a no-income-tax state, and 65–75% where state tax applies. The exact figure is your federal marginal bracket plus 7.65% FICA plus any state rate. A $1,800 raise on $60,000 for a single filer costs $216 federal and $137.70 FICA, leaving about $1,446.
Will a raise put me in a higher tax bracket and cost me money?
No. Brackets are marginal, so only the income above the threshold is taxed at the higher rate. If a raise pushes $500 into the 22% bracket, only that $500 is taxed at 22% — the rest of your salary keeps its old rates. A raise always leaves you with more take-home pay.
Why is my raise smaller in my paycheck than I expected?
Three usual reasons. Withholding is estimated by your employer and can run high until you update your W-4. Percentage-based deductions — 401(k), insurance, HSA — automatically take a slice of the new amount. And the raise may start mid-pay-period, so the first cheque only carries part of it.
Does a 401(k) contribution reduce the tax on my raise?
It reduces the income tax but not FICA. Elective 401(k) deferrals come out before federal income tax, so a raise routed into your 401(k) avoids the marginal income-tax rate — but Social Security and Medicare are still owed on the full amount. Set the pre-tax percentage above to see the effect.
What is the marginal rate on a raise?
Your federal bracket plus 7.65% FICA plus your state rate. For most middle-income single filers in 2026 that is 12% + 7.65% = 19.65%, or 22% + 7.65% = 29.65% once taxable income passes $50,400.
Does Social Security tax stop at some point?
Yes. Social Security is 6.2% of wages up to the 2026 wage base of $184,500; above that only the 1.45% Medicare tax applies (plus an extra 0.9% over $200,000 single / $250,000 married). A raise that crosses the wage base is taxed noticeably less than one below it.
Is a bonus taxed more than a raise?
It is withheld differently, not taxed differently. Employers commonly withhold supplemental wages at a flat 22%, which can be more or less than your real rate — the difference is settled when you file. Over a full year, a $3,000 bonus and a $3,000 raise carry the same tax.
Related calculators
- Pay Raise CalculatorNew salary, per paycheck, take-home and real raise.
- Hourly Raise CalculatorTurn a $/hour raise into weekly, monthly and annual pay.
- Cost of Living Raise CalculatorCompare your raise with inflation and find the break-even.
- Salary Increase Over TimeCompound annual raises over 5, 10 or 20 years.
Federal figures: IRS Rev. Proc. 2025-32 (2026). Wage base: SSA. State rates: Tax Foundation, 2026. Updated 2026-09-02.
Estimate for planning only. Not tax advice. Withholding on your actual paycheck depends on your W-4 and your employer's payroll settings.