Pay raise calculator
New pay = current pay × (1 + raise ÷ 100). A 4% raise on $60,000 is $2,400 more. Your new salary is $62,400. After estimated 2026 federal tax and FICA, you keep about $1,928 more a year.
That's $2,400.00 more (4%). That's about $200.00 more a month before taxes. After estimated federal tax and FICA, it's $1,928 more a year.
How to calculate a raise
- Convert the percent to a decimal: 4% = 0.04.
- Raise amount: $60,000 × 0.04 = $2,400.
- New salary: $60,000 + $2,400 = $62,400 ($92.31 more per biweekly paycheck before taxes).
- To find the percent from an offer: (new − old) ÷ old × 100. Going from $60,000 to $65,000 is an 8.33% raise.
Your take-home goes up by less than the raise. The extra dollars are taxed at your marginal rate. Here that’s 12% federal plus 7.65% FICA. So $2,400 of raise turns into $1,928 of take-home. That’s not a trick. It’s just the top rate at work.
A raise never lowers your total take-home. Only the dollars above a bracket line are taxed at the higher rate. Put another way, a raise can’t cost you money.
Raise table
| Salary | 3% raise | 5% raise | 10% raise |
|---|---|---|---|
| $40,000 | $41,200 (+$100/mo) | $42,000 (+$167/mo) | $44,000 (+$333/mo) |
| $60,000 | $61,800 (+$150/mo) | $63,000 (+$250/mo) | $66,000 (+$500/mo) |
| $80,000 | $82,400 (+$200/mo) | $84,000 (+$333/mo) | $88,000 (+$667/mo) |
| $100,000 | $103,000 (+$250/mo) | $105,000 (+$417/mo) | $110,000 (+$833/mo) |
Frequently asked questions
Can a raise push me into a higher tax bracket and lower my pay?
No. U.S. federal brackets are marginal. Only income above each bracket line is taxed at the higher rate. So a raise always increases take-home pay.
How do I compare a raise with inflation?
Subtract the inflation rate from the raise. A 4% raise with 3% inflation is roughly a 1% real raise. The rest just keeps up with prices. The BLS publishes the Consumer Price Index every month.
What is a 5% raise on $25 an hour?
$25 × 1.05 = $26.25 an hour, or $2,600 more per year at 2,080 hours.
How do I calculate the percent of a raise I was offered?
Divide the difference by your current pay. Then multiply by 100. Or enter your current pay and the offer in the calculator above.
Sources and assumptions
These are estimates. They assume a single filer with W-2 wages only and the 2026 standard deduction. They assume no pre-tax deductions, like a 401(k) or health insurance, and no credits. Your real withholding depends on your W-4. This is not tax advice.
- IRS — 2026 tax inflation adjustments (Rev. Proc. 2025-32)
- SSA — 2026 COLA fact sheet ($184,500 Social Security wage base)
- IRS — Topic 560, Additional Medicare Tax
- BLS — Usual Weekly Earnings, Q2 2026
- U.S. Department of Labor — Federal minimum wage
- California FTB — 2025 tax rate schedules, EDD — SDI rate
- New York State Department of Taxation and Finance, Pennsylvania Department of Revenue
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Updated: October 2, 2026 · Sources and methodology