Pay Raise Calculator With Taxes

Estimate the tax on the increase, not your whole salary

The tax panel compares estimated annual tax on your old and new pay. The difference is attributed to the raise. Enter your gross pay and increase, then choose your filing status, state and traditional 401(k) contribution percentage. Use the pay raise calculator for a gross comparison across all pay periods.

This is a simplified annual tax-liability comparison, not an exact payroll withholding calculation. It assumes one wage earner, the basic standard deduction, no other income and no tax credits. Married filing separately, itemized deductions and additional deductions are not supported.

A worked $1,800 raise example

For a single filer earning $60,000 with no state tax or traditional 401(k) contributions, a 3% raise adds $1,800 gross. Under the 2026 federal brackets, the extra federal income tax is $216. Employee Social Security and Medicare add $137.70. Estimated cash increase = $1,800 − $216 − $137.70 = $1,446.30 a year, or $55.63 per bi-weekly check across 26 checks.

With a 5% traditional 401(k) contribution, $90 of the raise goes to retirement saving. Federal tax on the raise falls to $205.20, while FICA remains $137.70. The estimated cash increase is $1,367.10 a year. The contribution is still yours as retirement saving, but is excluded from the displayed take-home amount.

Why a higher tax bracket does not apply to all your pay

Federal brackets are progressive. If a raise puts $500 into the 22% bracket while $1,500 remains in the 12% bracket, extra federal tax is $500 × 22% + $1,500 × 12% = $290. The calculator applies each part at its own rate. A higher bracket alone does not reduce after-tax income.

That does not rule out changes in credits, subsidies or benefit eligibility. These effects are not modeled here. For actual withholding, review your W-4 and the IRS Tax Withholding Estimator.

Social Security and Medicare

For 2026, employee Social Security is 6.2% up to $184,500 of wages. Medicare is 1.45% with no wage cap. Additional Medicare Tax is included above the selected filing-status threshold. Employer withholding of Additional Medicare Tax starts at $200,000 for an employee regardless of filing status, so withholding and eventual liability may differ. See the IRS rates and explanation.

For a raise from $180,000 to $189,000, only $4,500 of the increase is below the Social Security cap. Additional employee Social Security is $279 and Medicare is $130.50, totaling $409.50 under these assumptions. Applying 7.65% to the entire $9,000 increase would overstate FICA in this example.

State estimates are deliberately limited

The state option applies selected flat rates to the gross change. State deductions, exemptions, thresholds, contribution treatment, local income taxes and other payroll levies are excluded. A flat-rate estimate can be inaccurate near an exemption threshold or where the tax base differs from federal wages. Unsupported graduated-rate states display a warning and are excluded.

Georgia's rate has been updated to 4.99% using the Georgia Department of Revenue's June 2026 employer guide. Other state rate assumptions are comparison inputs, not a complete state tax calculation. Check your state's revenue department before using the result for a tax decision.

Which deductions can I enter?

The percentage field models traditional 401(k) employee contributions: they reduce federal taxable income but generally remain subject to Social Security and Medicare. IRS contribution treatment. Contribution limits, catch-up contributions and employer matches are not modeled. Do not use this field for Roth contributions or HSA payroll deductions, which have different treatment.

Why your first paycheck may differ

The raise may start midway through an earnings period, the check may include back pay, or benefits may be deducted on a different schedule. An annual estimate also does not account for other income or a working spouse. Check the first-paycheck walkthrough and mid-year worksheet before comparing a full-year estimate with one deposit.

Calculation review: October 5, 2026. Read the complete methodology and worked tests. This tool provides planning estimates, not tax advice.