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RealPaycheckCalculator

Pay Raise Calculator

Got a raise or negotiating one? See what it's really worth per paycheck after taxes, and how much of each new dollar you keep.

Updated Checked against IRS Pub 15-T & state tablesBefore vs. afterNet of taxes

Your results

New salary
$62,400
Raise
$2,400 (4%)
Extra take-home / bi-weekly check
$74.17
Extra take-home / month
$160.70
Extra take-home / year
$1,928
Share of raise you keep
80.4%
BeforeAfter
Gross per paycheck$2,307.69$2,400.00
Taxes per paycheck$369.62$387.75
Take-home per paycheck$1,938.08$2,012.25

Your raise is taxed at your marginal rates (12% federal + 7.65% FICA), so you keep about 80% of it. A raise never lowers your take-home pay — only the extra dollars are taxed at the higher rate.

Why a raise is smaller in your paycheck

Your raise is taxed at your marginal rate, the rate on your last dollar of income, not your average rate. If you're in the 22% federal bracket, pay 7.65% FICA and live in a state with a 5% rate, each extra dollar loses about 35 cents to tax. That's why a $3,000 raise often adds only about $75–$90 per bi-weekly paycheck.

Make your raise go further

  • Raise your 401(k) percentage at the same time. Put part of the raise into pre-tax savings and you'll barely notice it in your check while cutting your tax bill.
  • Check your W-4. A larger salary can change how your withholding lines up with your actual tax, especially for two-income households. Use the W-4 calculator.
  • Negotiate on net pay. If you're weighing two offers in different states, compare them with take-home pay by state.

Frequently asked questions

How much of my raise will I actually keep?

Most workers keep 60–80% of a raise. The extra dollars are taxed at your marginal rates: your federal bracket (usually 12–24%), 7.65% FICA, and your state rate. Enter your numbers above to see your exact share.

Can a raise put me in a higher tax bracket and lower my pay?

No. U.S. brackets are marginal, so only the dollars above a bracket threshold are taxed at the higher rate. A raise always increases your take-home pay. The only exceptions are benefit cliffs, such as losing eligibility for a subsidy, which aren’t taxes.

What is a good raise in 2026?

Many employers budgeted average merit increases around 3–4% for 2026. With inflation near 3%, a raise below that may mean a real-terms pay cut. Promotions typically come with 10–20% increases.

How do I calculate a percentage raise?

Multiply your current salary by the raise percentage. A 4% raise on $60,000 is $2,400, for a new salary of $62,400. Divide by your number of paychecks for the gross increase per check, then expect roughly 70–80% of that in take-home.