Pay Raise Calculator

Enter your current pay and raise to see your new salary — plus exactly how much more you'll actually take home after taxes.

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What Affects Your Take-Home After a Raise?

📊 Average US Raise
3–4% annually
🎯 Good Raise
5–8% for strong performers
🚀 Promotion Bump
10–20% typical
💼 Job Switch
15–25% common
🏛️ Marginal Tax Rate
Only extra income taxed higher
📉 Real Raise
Must beat inflation to matter

How to Calculate a Pay Raise

The math is simple: multiply your current salary by the raise percentage as a decimal, then add it back.

A $60,000 salary with a 5% raise → $60,000 × 1.05 = $63,000.

But the number that actually matters is how much more hits your bank account. That $3,000 raise doesn't add $3,000 to your take-home — federal income tax and FICA both apply to that extra income first.

Why Your Raise Feels Smaller Than Expected

The US uses a progressive tax system. When you get a raise, that additional income gets taxed at your marginal rate — which is higher than the average rate on your full salary.

On top of that, Social Security (6.2%) and Medicare (1.45%) apply to every dollar. So a $5,000 raise loses around 30–40% to taxes before it reaches you, depending on your bracket.

Raise vs. Bonus — Which Is Better?

A raise permanently increases your base salary — it compounds with future raises and affects your 401(k) match and any percentage-based bonuses. A one-time bonus doesn't raise your baseline.

Over a 5-year career, a $3,000 raise is almost always worth more than a $3,000 bonus, even if they look identical upfront.

Does a Raise Change Your Tax Bracket?

It might push some of your income into a higher bracket — but only the income above that threshold gets taxed at the higher rate, not your entire salary. The US system is marginal, not a cliff. A raise never makes you take home less money.

Frequently Asked Questions

On a $60,000 salary, a 5% raise adds $3,000 annually — about $115 extra per biweekly paycheck after federal taxes and FICA. Use the calculator above for your exact number.
It depends on inflation. In a normal year where inflation is 2–3%, a 3% raise roughly maintains your purchasing power. In a high-inflation year, a 3% raise is effectively a pay cut in real terms.
Subtract the old salary from the new one, divide by the old salary, then multiply by 100. Going from $55,000 to $60,000 → ($5,000 ÷ $55,000) × 100 = 9.09%.
Roughly 65–75 cents of every extra dollar, depending on your bracket and state. Federal tax at your marginal rate plus FICA (7.65%) accounts for the rest.
For a solid performer staying in the same role, 5–7% is a reasonable ask. If you're being promoted or have a competing offer, 10–20% is common and expected.