Money calculators · Updated September 3, 2026
Pay Raise Calculator
Convert a raise into your new pay, then see what actually lands in each paycheck after federal taxes, using the same withholding engine as the paycheck calculator.
| Current annual pay | $62,000 |
| New annual pay | $64,480 |
| Increase per month (gross) | $207 |
| Take-home per paycheck before | $1,999.88 |
| Take-home per paycheck after | $2,076.53 |
| Extra take-home per paycheck | $76.64 |
| Extra take-home per year | $1,993 |
| Share of the raise you keep | 80.4% |
Take-home figures include federal income tax withholding (standard W-4), Social Security and Medicare only. Use the paycheck calculator to add your state.
How the raise is calculated
raise = current pay × percent (or the dollar amount you enter) new pay = current pay + raise annual pay = hourly rate × hours per week × 52 (hourly mode) take-home = paycheck engine (IRS Pub 15-T withholding + 6.2% Social Security + 1.45% Medicare)
Because withholding is progressive, the extra take-home from a raise is smaller than the gross increase; the "share you keep" line shows the effective marginal rate on the raise.
Frequently asked questions
How do I calculate a pay raise percentage?
Raise percentage = (new pay − old pay) ÷ old pay × 100. A raise from $62,000 to $64,480 is 4%. Enter either the percentage or the dollar amount above and the calculator fills in the other.
How much of a raise do I actually take home?
Only part of it. Raises are taxed at your marginal rates: at the defaults, a $2,480 raise adds $1,993 of take-home pay for the year, about 80.4% of the gross increase, after federal income tax, Social Security and Medicare. State tax would take a further slice in most states.
What is a typical annual raise?
Merit budgets at US employers have run around 3.5% to 4% a year recently, with promotions and job changes bringing larger jumps. The Bureau of Labor Statistics Employment Cost Index tracks wage growth across the economy.
Does a raise push me into a higher tax bracket?
Only the dollars above the bracket threshold are taxed at the higher rate; the rest of your income is unaffected. A raise never reduces your take-home pay because of brackets.
How is hourly pay converted to a salary?
Annual = hourly rate × hours per week × 52. At 40 hours, $1 an hour is $2,080 a year.
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Sources and updates
Figures are for tax year 2026 and were checked against the sources below on . Rates change every January; we review every data file at the start of each year and whenever a state announces a mid-year change.
- Bureau of Labor Statistics, Employment Cost Index (wage growth)
- IRS Publication 15-T (2026), federal income tax withholding methods
- IRS Topic 751, Social Security and Medicare withholding rates
This calculator gives estimates for information only and is not tax, legal or financial advice. Your employer's payroll system, local taxes, benefits and year-to-date wages can change the exact amounts on your pay stub. See how we calculate.