Pay Raise Calculator: Salary Increase & Pay Increase Estimator (2026)

Use this free pay raise calculator to see your new salary after a percentage or flat-dollar raise. The calculator outputs updated gross annual, monthly, and weekly pay; the reference table below adds an illustrative after-tax scenario so you can see how gross and net increases differ.

On this page: Calculator · Reference table · FAQs

Got a raise? File your updated taxes accurately

A salary increase can change annual tax liability and withholding. These filing options can help reconcile the new W-2 amounts when you prepare your return:

TurboTax↗ — handles bracket changes, W-2 updates, and salary increase scenarios

FreeTaxUSA↗ — free federal filing for W-2 workers at any salary level

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Pay raise calculator: common salary increase examples (2026)

Here's how common raise percentages affect annual salary. The last column is an illustrative after-tax scenario assuming 25% of the incremental raise goes to taxes:

Current Salary 3% Raise 5% Raise 10% Raise Monthly Take-Home Increase (5%)
$40,000 → $41,200 (+$1,200) → $42,000 (+$2,000) → $44,000 (+$4,000) ~+$125/mo after tax
$50,000 → $51,500 (+$1,500) → $52,500 (+$2,500) → $55,000 (+$5,000) ~+$156/mo after tax
$60,000 → $61,800 (+$1,800) → $63,000 (+$3,000) → $66,000 (+$6,000) ~+$188/mo after tax
$75,000 → $77,250 (+$2,250) → $78,750 (+$3,750) → $82,500 (+$7,500) ~+$234/mo after tax
$100,000 → $103,000 (+$3,000) → $105,000 (+$5,000) → $110,000 (+$10,000) ~+$313/mo after tax
$120,000 → $123,600 (+$3,600) → $126,000 (+$6,000) → $132,000 (+$12,000) ~+$375/mo after tax

Monthly take-home figures are scenarios that assume 25% of the incremental raise goes to taxes. Actual increase depends on your tax bracket, state, and deductions. Use the take-home pay calculator to estimate your specific after-tax result. For state-specific impact, see how take-home pay compares by state.

Not sure how your raise affects your bracket?

A raise can shift your withholding or push part of your income into a higher bracket. If you want a straight answer for your specific situation:

Ask a Tax Pro↗ — talk to a real CPA about your new bracket, withholding, or W-4

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How a pay raise affects your take-home pay after taxes (2026)

A pay raise increases your gross salary — but taxes take a cut of the increase too. If 25% of the incremental raise goes to taxes, a $3,000 raise adds approximately $188/month net, not $250. At 30%, approximately $175/month. The gap between gross raise and net raise grows with income as higher brackets apply to the marginal increase.

Does a raise push you into a higher tax bracket? Yes, but only the income above the bracket threshold is taxed at the higher rate — not your full salary. Moving from the 22% to the 24% federal bracket on a portion of your raise means 2 percentage points more federal tax on that portion — about $20 per $1,000 — not a reason to turn down a raise. See how marginal vs effective tax rates work to understand why bracket creep is less costly than it appears. The IRS 2026 tax adjustments list the federal bracket thresholds used for 2026.

Is your raise keeping up with inflation? Compare your raise percentage with inflation over the same period. If prices rise faster than your pay, purchasing power can decline even when nominal salary increases. Use the reference table above to compare gross raise scenarios. For state-specific impact, see how take-home pay compares by state — a raise in a lower-tax state is worth more in net terms than the same raise in California or New York.

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Pay raise calculator: FAQs

How do you calculate a pay raise?

Multiply current salary by the raise percentage to get the increase, then add it to current salary. Formula: new salary = current salary × (1 + raise%). Example: $60,000 × 1.05 = $63,000 for a 5% raise.

How much is a 5% raise on $60,000?

A 5% raise on $60,000 adds $3,000, bringing gross salary to $63,000/year. That is $250 more gross per month. If 25% of the incremental raise went to taxes, the illustrative net increase would be about $188 per month or $2,250 per year.

How much does a $10,000 annual raise add per month?

A $10,000 annual raise adds about $833.33 gross per month. If 25% of the incremental raise went to taxes, the illustrative after-tax increase would be about $625 per month. Your actual result depends on marginal federal, payroll, state/local taxes, credits, and deductions.

How much does a raise really add to my paycheck?

The gross increase is straightforward; the after-tax increase depends on how the additional income is taxed. For example, a $3,000 annual raise is $250/month gross. If 25% of that incremental income went to taxes, the illustrative net increase would be about $188/month.

What does a 3%, 5%, or 10% raise mean?

Multiply current salary by 1.03, 1.05, or 1.10. On $60,000, those salaries become $61,800, $63,000, and $66,000 respectively. The calculator above also accepts a flat-dollar raise amount.

Is a percentage raise better than a flat raise?

Neither format is automatically better; compare the dollar increase. A 5% raise on $60,000 is $3,000, so it is equivalent to a $3,000 flat raise for that year.

Does a pay raise increase take-home pay?

Generally yes, although taxes and deductions reduce the amount you keep. If part of the raise reaches a higher federal bracket, only the income in that higher bracket is taxed at the higher marginal rate.

Does this calculator work for hourly workers?

This tool is designed around annual salary. For an hourly wage increase, use the U.S. hourly paycheck tax calculator or convert the new hourly rate to annual pay first.

Can I use this for salary negotiations?

Yes. Model several percentage or flat-dollar raise amounts to compare the resulting gross annual, monthly, and weekly pay. Use a take-home calculator separately when the after-tax difference matters.