A 10% raise sounds great. But after federal taxes, state taxes, and inflation you might be taking home far less than you think. Find out your real number.
Most people celebrate a raise without knowing what they'll actually take home. A $7,000 salary increase sounds life-changing — but after federal income tax, state tax, FICA, and inflation, the real gain is typically 30–45% smaller than the number on paper. This calculator uses real 2024 US federal tax brackets to show your true monthly and yearly gain in actual purchasing power. Whether you're negotiating a new offer, deciding whether a job change is worth it, or just trying to understand your paycheck, this tool gives you the honest number so you can plan around reality instead of the gross figure.
The inflation adjustment is the piece most salary calculators skip entirely — and it's the most important one. A 3% raise in a year with 3.2% inflation means your paycheck actually lost purchasing power even though the number went up. This calculator factors in your current inflation rate so you can see whether your raise is genuinely improving your financial position or simply keeping pace with rising costs. For people evaluating job offers in different states, the state tax field lets you compare take-home pay across different tax environments — the same $80,000 salary can mean nearly $8,000 more per year in a no-income-tax state versus a high-tax state.
Understanding your real take-home pay before you negotiate is one of the most powerful tools you have at the bargaining table. Knowing that a $5,000 raise translates to roughly $278 per month after taxes helps you make a more informed case for exactly what you need — rather than anchoring to a gross number that looks very different once the government takes its share.
★ Uses 2024 US federal marginal tax brackets. Single filer, standard deduction ($14,600). FICA (7.65%) included. State tax applied as a flat rate.
Your gross raise is reduced first by federal income tax at your marginal bracket, then by FICA — 6.2% Social Security and 1.45% Medicare — then by your state income tax rate. What remains is your real annual gain. Divide by 12 to get your monthly increase. On a $10,000 raise most people keep between $5,500 and $6,800 depending on their state.
Inflation reduces your purchasing power — the same dollar buys less each year. If your salary increases by 3% but inflation is 3.2%, your paycheck is nominally higher but you can actually buy less with it than you could the year before. A real raise needs to exceed inflation to genuinely improve your financial position.
Gross salary is the number on your offer letter — before any deductions. Net salary is what lands in your bank account after federal tax, state tax, Social Security, Medicare, and any other withholdings. Most people receive 60–75% of their gross salary as take-home pay depending on their tax situation and state.
Only the portion of income above the bracket threshold is taxed at the higher rate — not your entire salary. The US uses a marginal tax system, which means a raise rarely results in taking home less money. However, the portion of your raise that falls in a higher bracket is taxed at that higher rate, which is why raises often feel smaller than expected.
FICA stands for Federal Insurance Contributions Act and covers Social Security (6.2%) and Medicare (1.45%) — a combined 7.65% deducted from every paycheck. On a $5,000 raise that's $382.50 going to FICA alone, before federal or state income tax is applied. Your employer also pays an equal 7.65% match on your behalf.