{
  "slug": "how-much-will-my-raise-be-after-tax",
  "title": "How Much Will My Raise Be After Tax?",
  "heading": "How Much Will My Raise Be After Tax?",
  "category": "financial",
  "url": "https://www.revenuelab.fyi/toolbox/how-much-will-my-raise-be-after-tax",
  "summary": "A $5,000 raise taxed at your 32% marginal rate (federal + FICA + state) nets about $3,400 in actual take-home increase.",
  "description": "A raise is taxed at your marginal tax rate — the rate on your highest dollar of income — not your average tax rate, since the new income stacks on top of what you already earn. This calculator applies your combined marginal rate (federal bracket + FICA + state) to your raise to show the real take-home increase.",
  "formula": "Net Raise = Raise Amount × (1 − Combined Marginal Rate). Combined Marginal Rate = Federal Marginal Bracket + FICA % + State Rate.",
  "dateModified": "2026-09-06",
  "run_url": "https://www.revenuelab.fyi/api/public/calc?tool=how-much-will-my-raise-be-after-tax",
  "inputs": [
    {
      "id": "raiseAmount",
      "label": "Annual raise amount",
      "kind": "number",
      "hint": null,
      "default": 5000,
      "unit": "$",
      "min": 0,
      "max": null
    },
    {
      "id": "federalBracket",
      "label": "Your federal marginal tax bracket",
      "kind": "select",
      "hint": null,
      "default": "22",
      "options": [
        {
          "value": "12",
          "label": "12%"
        },
        {
          "value": "22",
          "label": "22%"
        },
        {
          "value": "24",
          "label": "24%"
        },
        {
          "value": "32",
          "label": "32%"
        },
        {
          "value": "35",
          "label": "35%"
        }
      ]
    },
    {
      "id": "stateTaxRate",
      "label": "State marginal tax rate",
      "kind": "number",
      "hint": null,
      "default": 5,
      "unit": "%",
      "min": 0,
      "max": 13
    }
  ],
  "outputs": [
    {
      "id": "netRaise",
      "label": "Net raise (take-home increase)",
      "format": "currency",
      "hint": null,
      "primary": true
    },
    {
      "id": "taxTaken",
      "label": "Tax taken from raise",
      "format": "currency",
      "hint": null,
      "primary": false
    },
    {
      "id": "combinedRate",
      "label": "Combined marginal rate",
      "format": "percent",
      "hint": null,
      "primary": false
    }
  ],
  "worked_example": {
    "inputs": [
      "Annual raise amount: 5000 $",
      "Your federal marginal tax bracket: 22%",
      "State marginal tax rate: 5 %"
    ],
    "outputs": [
      "Net raise (take-home increase): $3,268",
      "Tax taken from raise: $1,733",
      "Combined marginal rate: 34.7%"
    ]
  },
  "how_to": {
    "title": "How to use this",
    "steps": [
      "Enter annual raise amount ($).",
      "Enter your federal marginal tax bracket.",
      "Enter state marginal tax rate (%).",
      "Read your net raise (take-home increase) on the right — it updates as you type.",
      "Hit Share to keep the scenario or send it to someone."
    ]
  },
  "scenarios": [
    {
      "name": "Conservative",
      "description": "Lower-end numbers — what if things land soft?",
      "values": {
        "raiseAmount": 3000,
        "federalBracket": "22",
        "stateTaxRate": 3
      }
    },
    {
      "name": "Typical",
      "description": "Defaults — the most common real-world setup.",
      "values": {
        "raiseAmount": 5000,
        "federalBracket": "22",
        "stateTaxRate": 5
      }
    },
    {
      "name": "Ambitious",
      "description": "Higher-end numbers — what if things really pop?",
      "values": {
        "raiseAmount": 8000,
        "federalBracket": "22",
        "stateTaxRate": 8
      }
    }
  ],
  "limitations": [
    "Results are estimates before tax, fees, and inflation unless an input explicitly covers them.",
    "Rates are treated as fixed for the whole period — variable-rate products will drift from this projection.",
    "This is educational maths, not financial advice. Check anything contractual with the lender or your accountant."
  ],
  "faq": [
    {
      "q": "How much will my raise be after tax?",
      "a": "A $5,000 raise at a 22% federal bracket, 5% state rate, and 7.65% FICA (34.65% combined) nets about $3,268 in real take-home increase, with $1,733 going to taxes."
    },
    {
      "q": "Why does my raise feel taxed more than my regular pay?",
      "a": "Your raise stacks on top of your existing income and is taxed at your marginal bracket — the rate on your highest dollar earned — which is typically higher than the average (effective) rate across your whole paycheck."
    },
    {
      "q": "Does a raise ever push me into a higher tax bracket entirely?",
      "a": "Only the portion of income that crosses into the new bracket is taxed at the higher rate — U.S. brackets are marginal, so a raise never reduces your take-home pay overall even if part of it lands in a higher bracket."
    },
    {
      "q": "Should I adjust my 401(k) contribution after a raise?",
      "a": "Many people bump 401(k) contribution percentage with a raise since the change is barely felt in take-home pay but meaningfully boosts long-term retirement savings, especially if it captures additional employer match."
    }
  ],
  "related": [
    "https://www.revenuelab.fyi/toolbox/how-much-will-i-take-home-after-tax",
    "https://www.revenuelab.fyi/toolbox/how-much-tax-will-i-owe-on-a-bonus"
  ],
  "license": "CC-BY-4.0",
  "citation": "RevenueLab — How Much Will My Raise Be After Tax? (https://www.revenuelab.fyi/toolbox/how-much-will-my-raise-be-after-tax)"
}