Pay Raise Calculator (2026)
A 5% raise on $60k lifts your salary to $63,000.00 — a $3,000.00 gross raise. But it is taxed at your marginal rate, so your take-home only rises about $2,410.50 a year ($200.88/month). You keep roughly 80.35% of the raise. Enter your numbers below.
How do you calculate a pay raise?
Multiply your current salary by 1 plus the raise percentage. A 5% raise on $60,000 is $63,000.
How much is a 5% raise on $60k?
$3,000.00 more gross, but about $2,410.50 more take-home after tax.
Why is my raise smaller after tax?
The raise is taxed at your marginal rate, so you keep only part of it — here about 80.35%.
How much of a raise do you keep?
Usually 60–75%. In this example you keep 80.35%, or $200.88 more per month.
How do you calculate a pay raise?
Multiply your current salary by 1 plus the raise as a decimal. A 5% raise uses 1.05, so $60,000 becomes $63,000. That is the gross raise — the calculator above also shows what reaches your bank account.
Because the extra income is taxed at your marginal rate, the take-home increase is always smaller than the headline raise.
How much of a raise do you actually keep?
| Item | Amount |
|---|---|
| Current salary | $60,000.00 |
| New salary (+5%) | $63,000.00 |
| Gross raise | $3,000.00 |
| Take-home raise (after tax) | $2,410.50 |
Why is the take-home raise smaller than the gross raise?
Every dollar of the raise sits on top of your existing income, so it is taxed at your marginal rate — federal, state, and FICA combined. A 5% raise rarely means 5% more in your pocket.
Does a raise push me into a higher tax bracket?
Only the portion above the next threshold is taxed at the higher rate — brackets are marginal, so a raise never lowers your take-home. Your effective rate edges up gradually.
How do you calculate the net raise step by step?
- Compute the new salary: current × (1 + raise%).
- Find take-home at the old salary and at the new salary.
- Subtract to get the take-home raise.
- Divide by the gross raise to see the percent you keep.