FINANCIAL · NET PAY RAISE
Net Pay Raise Calculator
Find out how much a salary raise actually adds to your take-home pay after federal income tax and FICA. See the annual, monthly, and biweekly net increase.
Federal tax and FICA only. State income tax not included. Uses 2026 IRS tax brackets (Rev. Proc. 2025-32) and post-2020 W-4 Percentage Method. Individual results will vary based on additional withholding, credits, and deductions.
About This Calculator
Find out how much of your salary raise you'll actually see in your paycheck. Enter your current and new salary, your filing status, and any annual pre-tax deductions to see the exact federal income tax and FICA (Social Security and Medicare) impact on your raise.
How It Works
The calculator computes the marginal increase in federal income tax (using 2026 IRS brackets from Rev. Proc. 2025-32) and FICA (Social Security 6.2% up to the $184,500 wage base + Medicare 1.45%, plus the 0.9% additional Medicare surtax above $200k/$250k) caused by your raise. Net take-home increase = gross raise − additional federal tax − additional FICA. Uses the post-2020 W-4 Percentage Method only (no legacy allowance method).
The Formula
Net Raise = Gross Raise − Federal Δ − SS Δ − Medicare Δ
- Net Raise
- annual increase in take-home pay
- Gross Raise
- new annual salary minus old annual salary
- Federal Δ
- increase in federal income tax due to the raise (2026 brackets)
- SS Δ
- Social Security: 6.2% on raise up to $184,500 annual wage base
- Medicare Δ
- Medicare: 1.45% on raise + 0.9% on amount above $200k/$250k
Frequently Asked Questions
- Why doesn't my full raise show up in my paycheck?
- A portion of every dollar of a raise is withheld as additional federal income tax and FICA (Social Security and Medicare). Because federal income tax uses progressive brackets, the extra dollars often fall into a higher marginal rate than most of your existing income. This calculator shows exactly how much each of those withholdings takes from your raise.
- What is the effective marginal tax rate on my raise?
- The effective marginal rate shown is the combined federal income tax + FICA rate that applies specifically to the dollars of your raise — not to your entire salary. It equals (federal tax delta + FICA delta) ÷ gross raise. For most middle-income workers it ranges from roughly 29–37%, depending on filing status and income level.
- Does this include state income tax?
- No. State income taxes vary significantly by state and are not included. Add your state's marginal rate to the effective marginal rate shown to estimate the total tax bite on your raise.
- What are pre-tax deductions and how do they help?
- Pre-tax deductions (401(k) contributions, health insurance premiums, HSA/FSA contributions) reduce your federal taxable income. If you increase your pre-tax contributions alongside a raise, the net tax impact on your raise is lower. They don't reduce Social Security or Medicare withholding.
- Which tax year do the brackets come from?
- This calculator uses 2026 IRS federal income tax brackets from IRS Revenue Procedure 2025-32, verified against official IRS sources. The Social Security wage base is $184,500 for 2026, confirmed by the Social Security Administration.