Pay Raise Calculator
A raise is quoted before tax. This works out what actually reaches your bank account. Enter your salary and your raise, and you will see the increase per year and per payday, plus how much of every $100 you keep.
That is $3,000 more a year before tax.
Your take-home pay goes up by
$2,411
a year, which is $92.71 more in each of your 26 paychecks
- Raise before tax
- $3,000
- Tax on the raise
- −$590
- You actually keep
- $2,411
You keep about $80 of every $100 of this raise. The rest goes to tax at a marginal rate of 19.7% in Florida.
Both figures come from a full engine run, before and after, so brackets, credits and local taxes all apply. Salary only, with no 401(k) or other deductions.
A raise cannot leave you worse off
This is the most common worry about a raise, and it is wrong. Tax brackets are marginal. A higher rate only touches the dollars above the bracket line. The money you were already earning keeps its old rate.
So crossing into a new bracket never cuts your take-home pay. It only means the last slice of your raise is taxed a little harder than the first slice.
What a 5% raise is really worth
A single filer in Florida, which has no state income tax, so this is the federal picture on its own. Your own state will take a little more.
| Salary | 5% raise | You keep | Lost to tax | Share kept |
|---|---|---|---|---|
| $40,000 | $2,000 | $1,607 | $393 | 80% |
| $60,000 | $3,000 | $2,411 | $590 | 80% |
| $80,000 | $4,000 | $2,814 | $1,186 | 70% |
| $100,000 | $5,000 | $3,518 | $1,483 | 70% |
| $150,000 | $7,500 | $5,126 | $2,374 | 68% |
The same $5,000 raise in different states
A single filer going from $70,000 to $75,000. Where you live changes what you keep.
| State | You keep | Share of the raise |
|---|---|---|
| Florida | $3,518 | 70% |
| Texas | $3,518 | 70% |
| Pennsylvania | $3,364 | 67% |
| New York | $3,248 | 65% |
| Oregon | $3,176 | 64% |
| California | $3,118 | 62% |
Common questions
- How much of a pay raise do you actually keep?
- Most people keep between 60 and 75 cents of every dollar. On a $60,000 salary in Florida a 5% raise is $3,000 before tax and about $2,411 after. The exact share depends on your bracket, your state and your filing status.
- Will a raise push me into a higher tax bracket and cost me money?
- No. A raise can never leave you with less money. Tax brackets are marginal, so a higher rate only applies to the dollars above the bracket line, not to your whole salary. The dollars you already earned are still taxed at the old rates.
- Why is my raise smaller in my paycheck than I expected?
- Your raise is quoted before tax. Federal income tax, Social Security, Medicare and any state or local tax all come off the top. Spread across 26 paychecks, a large yearly number can look small on one payday.
- Does a raise increase my Social Security and Medicare tax?
- Yes. Both are a flat percentage of your wages, so they rise with every extra dollar. Social Security stops once your wages pass the yearly cap, which is why very high earners keep more of a raise than middle earners do.