📈Raise Calculator
Calculate how much your raise will actually increase your take-home pay after taxes. See the real impact on your paycheck and lifetime earnings.
Frequently Asked Questions
How is my take-home pay calculated from a raise?
Your take-home pay from a raise is calculated by subtracting federal taxes (10-37%), state taxes (0-13%), Social Security (6.2%), and Medicare (1.45%) from your gross raise amount. For example, a $5,000 raise in the 22% federal bracket plus 5% state tax might only increase take-home pay by $3,350 after taxes. The 'tax bite' on your raise is typically 30-40% depending on your tax bracket and state.
What's a typical annual raise percentage?
Average annual raises are 3-5% in most industries. Performance raises range 4-7%, while cost-of-living adjustments are typically 2-3%. Promotions may bring 10-20% increases. In tight labor markets or high-inflation periods, raises may exceed 5%. If you're consistently getting less than 3% annually, your real income is shrinking due to inflation. High performers in competitive fields should aim for 5-7% annual increases.
When should I ask for a raise?
The best time to ask for a raise is after a major accomplishment, during annual review cycles, or when you've taken on significantly more responsibility. Wait at least 12 months since your last raise or hire date. Prepare by documenting achievements, researching market rates for your role, and timing the request when the company is doing well financially. Avoid asking during budget freezes or layoffs.
How much will I actually see in my paycheck from a raise?
Expect to see 60-70% of your gross raise in your take-home pay. Taxes typically consume 30-40% of the raise: Federal income tax (22-24% for most), FICA taxes (7.65%), and state income tax (0-13%). For example, a $100 gross raise per paycheck becomes $60-70 after taxes. Higher earners in high-tax states might only see 50-55% of their raise. Use this calculator to see your exact amount based on your situation.
What if I get a 10% raise - how much better off am I?
A 10% raise on $60,000 ($6,000 gross) might increase take-home pay by only $4,000-4,500 annually due to taxes. That's $333-375 extra per month or $154-173 per biweekly paycheck. While a 10% raise sounds substantial, the after-tax impact is more modest. Over 10 years, that $6,000 annual raise is worth $40,000-45,000 in additional take-home pay, demonstrating the long-term value of salary increases.
Related Calculators
Financial Disclaimer
This calculator is provided for educational and informational purposes only. The results are estimates based on the information you provide and should not be considered as financial, legal, or tax advice.
Actual results may vary based on your specific circumstances, market conditions, and other factors. Always consult with qualified financial, legal, and tax professionals before making any financial decisions.
We make no guarantees about the accuracy, completeness, or reliability of the calculations. Use this tool at your own risk.