Question 1

How much of my raise will I actually get?

Accepted Answer

Typically, you keep 60-75% of a gross raise after federal income tax, FICA (Social Security and Medicare at 7.65%), and state tax. The exact percentage depends on your tax bracket and state. For example, a $5,000 annual raise in the 22% federal bracket yields about $3,200 in extra net pay per year.

Question 2

Why does my raise feel smaller than expected?

Accepted Answer

Because taxes scale with your income. The additional salary is taxed at your marginal rate, and FICA applies to all wages up to the Social Security cap. If you also increased pre-tax deductions like 401(k) contributions, your net increase shrinks further.

Question 3

Does a raise push me into a higher tax bracket?

Accepted Answer

It might, but only the dollars above the bracket threshold are taxed at the higher rate — never your entire income. The U.S. tax system is progressive, so a raise always increases your net pay; it never costs you money.

Raise Calculator After Taxes

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