Pay Raise Calculator
Find out exactly how much extra you'll take home after a pay raise. See the real impact after federal tax, state tax, and FICA deductions.
Your Pay Raise
Calculate how much extra you'll take home
Your Increase
Extra take-home after tax (2025)
Before vs After Comparison
Current Salary
After Pay Raise
Understanding Your Pay Raise
Keep about 70 cents of every $1 raise (22% federal + 7.65% FICA)
Keep about 60 cents of every $1 raise (32% federal + 7.65% FICA)
Keep about 55 cents of every $1 raise (37% federal + FICA)
Tips for Maximizing Your Pay Raise
Increase 401(k) Contributions
Traditional 401(k) contributions reduce your taxable income. If you get a $5,000 raise and increase your 401(k) by $5,000, you boost retirement savings while reducing your tax bill. Use our 401(k) Calculator to see the impact.
Update Your W-4
After a pay raise, your withholding may need adjustment. Use the IRS Tax Withholding Estimator to ensure you're not over or underpaying throughout the year.
Consider HSA Contributions
If you have a high-deductible health plan, HSA contributions reduce both income tax AND FICA taxes. This triple tax advantage (deductible, grows tax-free, tax-free for medical expenses) makes HSAs one of the best tax-advantaged accounts.
State Tax Matters
Remember that state income tax adds to your marginal rate. In high-tax states like California (up to 13.3%) or New York (up to 10.9%), your combined marginal rate can exceed 50%. Use our calculator to see your state's impact.
Frequently Asked Questions
How much of my pay raise will I actually keep?
The amount you keep depends on your marginal tax bracket. In the 22% federal bracket ($48,475-$103,350 for single filers), combined with FICA taxes (7.65%), you typically keep about 70% of your raise. In higher brackets (32%+), you may keep only 60% or less. State income tax further reduces take-home pay in most states.
Does a pay raise affect my tax bracket?
Only the portion of your income above each bracket threshold is taxed at the higher rate - not your entire income. The US uses progressive tax brackets (10%, 12%, 22%, 24%, 32%, 35%, 37%). A raise that "pushes you into a higher bracket" only affects the additional income, not what you already earned.
Is a percentage or fixed amount pay raise better?
From a tax perspective, they work the same - only the final salary matters. A 5% raise on $50,000 ($2,500) is taxed identically to a flat $2,500 increase. However, percentage raises preserve your purchasing power better against inflation over time.
How can I maximize the value of my pay raise?
Increase your 401(k) contributions to reduce taxable income while boosting retirement savings. Traditional 401(k) contributions lower your federal and state tax bill. For 2025, you can contribute up to $23,500 ($31,000 if over 50). HSA contributions, if eligible, also reduce taxable income.
Will my pay raise increase my FICA taxes?
Yes, Social Security tax (6.2%) applies up to the wage base of $176,100. If your new salary is below this limit, you'll pay more Social Security tax. Medicare tax (1.45%) has no cap and applies to all earnings.