How much of a $5,000 raise do I keep after taxes?

On a $75,000 salary in California, a $5,000 raise keeps about $3,500 after federal, FICA, and state withholding in 2026. That is about 70.0% of the gross raise.

Does a raise increase my effective tax rate on all my income?

No. A raise changes the marginal tax on the added income, not the tax rate on your entire paycheck. Your older dollars are still taxed under the earlier brackets.

What is the marginal tax rate vs effective tax rate?

Marginal tax rate is the rate applied to your next dollar of income. Effective tax rate is total tax divided by gross pay. A raise can push part of your income into a higher marginal bracket while your overall effective rate remains lower.

How does a raise affect my FICA taxes in 2026?

Raises generally increase Social Security and Medicare withholding until you reach the Social Security wage base. Medicare continues on all wages, and additional Medicare may apply at higher incomes.

Should I contribute more to my 401(k) after a raise?

A raise is a good time to review your 401(k) contribution. Pre-tax contributions reduce taxable income and can help you keep more of the raise. Use the W-4 calculator to model the impact.

How do I calculate my take-home pay after a raise?

Compare take-home at your current salary and your new salary using the raise calculator above. The difference in net pay is the amount you actually keep after taxes and deductions.

2026 Salary Calculator

Raise Impact Calculator - How Much Will You Keep?

See the exact after-tax value of any raise or promotion, in any US state.

Research article · State calculators

What to check before you judge a raise

A raise changes withholding on the additional dollars, not on all of your existing pay. That is why a larger gross salary can still produce a smaller-than-expected paycheck increase without meaning the raise was “taxed away.” This page is designed to show the difference between marginal tax rate headlines and the actual dollars you keep after federal, FICA, and state withholding are applied to the raise amount.

It is especially useful when you are comparing a promotion, annual merit increase, or competing offer against your current compensation. If the net increase looks smaller than expected, test a different filing status or pre-tax deduction level before drawing conclusions. Those payroll settings often explain more of the gap than the tax bracket itself.

Load the calculator to compare raise scenarios in your browser.

Marginal tax rates apply only to the additional dollars in your raise. Your existing income stays taxed under the earlier bracket structure. That is why a raise still increases take-home pay, even when the keep rate is lower than 100%.