Raise calculator
A raise is quoted before tax. Enter your salary and the raise to see how much more lands in each paycheck.
| Per year | Before | After | Change |
|---|---|---|---|
| Gross pay | $60,000 | $63,000 | +$3,000 |
| Federal income tax | −$5,020 | −$5,380 | −$360 |
| Social Security and Medicare | −$4,590 | −$4,819 | −$230 |
| Texas taxes | $0 | $0 | +$0 |
| Take-home | $50,390 | $52,801 | +$2,411 |
A raise never lowers your take-home: only the extra dollars are taxed at the higher rate, not your whole salary.
Why you keep less than the raise
Every extra dollar of pay has federal income tax, Social Security and Medicare taken out, plus state income tax in most states. The raise is usually taxed at your top federal rate — the rate on your last dollars — which is higher than your average rate on the whole salary. In the example, a 5% raise on $60,000 is $3,000 a year; in Texas you keep $2,411 of it (80%), and in California $2,173 (72%).
What you keep from common raises on $60,000
Single filer, paid every two weeks, standard W-4 — yearly figures after all taxes.
| Raise | Before tax | Kept in TX | CA | NY |
|---|---|---|---|---|
| 2% | $1,200 | $964 | $869 | $894 |
| 3% | $1,800 | $1,446 | $1,304 | $1,341 |
| 4% | $2,400 | $1,928 | $1,739 | $1,789 |
| 5% | $3,000 | $2,411 | $2,173 | $2,236 |
| 10% | $6,000 | $4,821 | $4,287 | $4,471 |
Can a raise lower my take-home pay?
No. Federal and state income taxes are progressive: moving into a higher bracket only taxes the dollars above the bracket line at the higher rate. Your take-home can look lower on one paycheck if a benefit or 401(k) percentage changed at the same time, or if a lump-sum retroactive raise was withheld as a bonus — see the bonus tax calculator.
Putting part of the raise in a 401(k)
If you raise your traditional 401(k) contribution when you get a raise, the extra you save comes out before federal income tax (and before state income tax in most states), so your take-home drops by less than the amount you save. Social Security and Medicare still apply to the full raise. Use your state's paycheck calculator with the 401(k) box to see both at once.
When the raise shows up
A raise usually starts with the first full pay period after its effective date. If it's backdated, the catch-up for earlier periods may be paid as a separate lump sum, which can be withheld like a bonus — at a flat 22% for federal income tax, or added to one paycheck. That lump sum can look heavily taxed, but it's the same income tax in the end, settled when you file your return.
How it's worked out
Worked out with the same engine as our state calculators: IRS Publication 15-T (2026) for federal withholding, the 2026 Social Security and Medicare rates, and each state's official withholding formula with its default state-form choices. Single filer and paid every two weeks unless you change it; no 401(k) or benefits. The calculator works out a full year at your old salary and at your new salary and shows the difference.
Sources
- IRS Publication 15-T (2026), Federal Income Tax Withholding Methods — Worksheet 1A and the annual percentage-method tables
- IRS Publication 15 (2026), Employer's Tax Guide — Social Security and Medicare rates
- Social Security Administration — 2026 wage base of $184,500
Questions
How much is a 5% raise on $60,000 after taxes?
$3,000 a year before tax. After federal tax, Social Security and Medicare you keep about $2,411 in a state with no income tax ($92.73 more per two-week paycheck), and $2,173 in California, for a single filer.
Will a raise put me in a higher tax bracket?
It might, but only the part of your pay above the bracket line is taxed at the higher rate. Your take-home always goes up.
How much is a $1 an hour raise per year?
At 40 hours a week for 52 weeks, $2,080 a year before tax. Enter it as a dollar raise above to see what you keep in your state.
Should I ask for a percentage or a dollar raise?
It's the same thing expressed two ways — this calculator takes either. What matters is the yearly dollar amount and what you keep after tax.