AfterTaxLabRaise Calculator: What a Raise Actually Adds to Your Paycheck
A salary increase appears straightforward on a contract, but the actual amount hitting your bank account is often smaller than the gross figure. Many employees overlook the cumulative impact of federal withholdings and payroll taxes. This tool clarifies the relationship between a gross raise and your net take-home pay, helping you visualize the impact of statutory deductions. Use these estimates to understand how a 20,000 dollar raise filters through the tax system before reaching your monthly budget.
Enter your current salary and the raise. The calculator shows the extra money that actually reaches your account.
Every figure below comes from the same AfterTaxLab engine used across the site: 2026 federal brackets, standard deduction, FICA (Social Security up to $184,500) and each state's modelled income tax.
Where the raise goes
What a raise adds at different salaries
Single filer, 2026 rules, Texas (no state income tax). Extra dollars are the take-home difference after the raise.
| Raise | On $60,000 | On $80,000 | On $120,000 | On $200,000 |
|---|---|---|---|---|
| $2,000 | $1,607 | $1,407 | $1,403 | $1,473 |
| $5,000 | $4,017 | $3,517 | $3,453 | $3,682 |
| $10,000 | $7,685 | $7,035 | $6,871 | $7,365 |
| $20,000 | $14,720 | $14,070 | $13,706 | $14,560 |
How a raise is turned into take-home pay
The calculation models your net earnings by applying 2026 federal income tax brackets and the standard deduction. It incorporates mandatory FICA withholdings, which cover Social Security and Medicare obligations, alongside applicable state income taxes. By isolating these specific variables, the tool provides a clearer picture of how much of your increase is retained after mandatory government contributions. This analysis reflects general tax structures and serves as educational content; please note that this information is not tax advice and individual outcomes vary based on specific tax profiles.
When reviewing your results, focus on the distinction between gross and net increases. The figure at the top of the range represents the total raise amount, while the subsequent values demonstrate how much remains after federal and state taxes are subtracted. Several factors drive these results, primarily your marginal tax rate and the specific state tax laws where you reside. As your income rises, higher tax brackets may apply to the incremental portion of your salary, effectively reducing the percentage of the raise that stays in your pocket. Always compare the net retention across different salary levels to understand the diminishing returns of higher income.
State income tax is a primary driver of the variation seen in net pay outcomes across the country. States with no income tax allow you to retain a larger portion of your raise, while states with high progressive income tax brackets will result in a smaller net gain for the exact same gross increase. Our model adjusts for these regional differences, showing that where you live significantly influences the bottom-line value of a promotion. Because states apply their own tax schedules and exemptions, the difference in your take-home pay can be substantial when moving between different tax jurisdictions.
This calculator focuses on statutory deductions and does not account for local or municipal income taxes, which vary significantly by city or county. It also excludes individualized tax credits, such as child tax credits or mortgage interest deductions, which can alter your final tax liability. Additionally, the model does not incorporate elective pre-tax deductions like 401(k) contributions, health savings accounts, or flexible spending accounts. Because these personal financial choices and local obligations are unique to your situation, they fall outside the scope of this standardized fiscal estimation tool.
Common mistakes
Assuming that a raise is taxed at your current average tax rate is a common error. In reality, a raise is taxed at your marginal rate, which is typically higher than your overall effective tax rate. This means that a significant portion of your raise is subject to the highest tax bracket you fall into, leading many people to overestimate the net impact of their salary increase before performing a detailed calculation.
Many individuals mistakenly believe that FICA taxes apply to all income equally without a cap. In reality, Social Security taxes are applied up to the annual wage base limit, after which only the Medicare portion of the FICA tax remains. Failing to account for this threshold can lead to an inaccurate projection of how much your paycheck will grow once you cross that annual income benchmark, as the total tax burden on your incremental income may shift slightly.
Overlooking the impact of state-specific deductions is another frequent oversight. Many people focus exclusively on federal withholdings and ignore state income tax, which acts as an additional layer of reduction on your raise. If you assume that a salary increase will result in a specific percentage gain based solely on federal rates, you may be surprised by the total reduction once state taxes are factored in, leading to a disconnect between expectations and the actual amount deposited.
Raise questions
Why is my net raise lower than the gross amount?
Your gross raise is subject to mandatory federal and state income tax withholdings, as well as Social Security and Medicare payroll taxes. These deductions are applied to the incremental income, meaning the government takes a percentage of your increase before it reaches your paycheck.
Does this tool account for my 401(k) contributions?
No, the tool specifically models statutory tax obligations. It does not include voluntary pre-tax deductions like 401(k) contributions, health insurance premiums, or other elective payroll deductions that reduce your taxable income.
How does the federal tax bracket system affect my raise?
The U.S. tax system uses progressive brackets. A raise may push some of your income into a higher tax bracket, meaning that specific portion of your salary is taxed at a higher rate than the income you earned previously.
Are local or city taxes included in the calculations?
No, the tool does not factor in local, municipal, or school district income taxes. These taxes vary by specific zip code or city and are too granular to be included in this general estimation model.
Why does the net pay differ between states?
Every state has its own unique tax code. Some states impose a flat income tax, some use progressive brackets, and others have no state income tax at all, which directly affects how much of your raise you keep.
Can I use this for tax planning purposes?
This calculator is an educational resource meant to illustrate the impact of tax withholdings. It is not tax advice, and you should consult with a qualified professional for personalized guidance regarding your specific tax liability.
Estimates for planning only — not tax advice. Sources: 2026 IRS brackets and standard deduction, Social Security wage base $184,500, published 2026 state rates · last verified 19 Sep 2026 · methodology.