Raise Calculator 2025
Calculate the impact of salary increases on your take-home pay, taxes, and net income. Analyze raise percentages, promotion impacts, and tax bracket changes with accurate calculations. Understand how much of your raise you'll actually keep after taxes and deductions.
Raise Impact Calculator
Calculate salary increase impact on take-home pay and tax obligations
Salary Raise Information (2025)
Typical Raise Percentages (2025)
Cost of Living
Annual inflation adjustment
Merit Increase
Performance-based raise
Promotion
Role advancement increase
Job Change
External opportunity increase
Tax Bracket Impact (2025)
Marginal Tax Rate
Rate on additional income
FICA Taxes
Social Security + Medicare
State Taxes
Varies by state
Net Increase
Typical take-home portion
Raise Negotiation Tips (2025)
Research Market Rates
Use salary surveys, Glassdoor, PayScale, and industry reports to understand current market rates for your position and experience level.
Document Achievements
Prepare a comprehensive list of accomplishments, projects completed, revenue generated, and value added to the organization.
Timing Matters
Schedule discussions during performance reviews, after major accomplishments, or during budget planning periods for best results.
Consider Total Package
Negotiate beyond base salary including bonuses, benefits, flexible work arrangements, professional development, and equity compensation.
Maximizing Raise Impact (2025)
Increase 401(k) Contributions
Use part of your raise to increase retirement contributions, reducing taxable income while building long-term wealth. Consider maximizing employer match first.
Optimize Tax Withholdings
Adjust W-4 withholdings to avoid large refunds or tax bills. Use the IRS withholding calculator to optimize your take-home pay throughout the year.
Maximize HSA Contributions
If eligible, increase Health Savings Account contributions for triple tax benefits: deductible contributions, tax-free growth, and tax-free withdrawals for medical expenses.
Invest in Professional Development
Allocate part of your raise to skills training, certifications, or education that can lead to future career advancement and additional salary increases.
Raise Impact Examples (2025)
Merit Increase
Current Salary: $75,000
Raise Percentage: 5% Merit Increase
Filing Status: Single
State: California
Raise Impact Analysis
Promotion
Current Salary: $95,000
Promotion Increase: 18% Promotion
Filing Status: Married Filing Jointly
State: Texas
Promotion Impact
Job Change
Current Salary: $120,000
New Job Offer: 25% Increase
Filing Status: Single
State: New York
Job Change Analysis
Cost of Living Adjustment
Current Salary: $65,000
COLA Increase: 3.2% Annual Adjustment
Filing Status: Head of Household
State: Florida
COLA Impact Analysis
Frequently Asked Questions About Salary Raises
Typically, you'll take home 60-75% of your gross raise after taxes. The exact amount depends on your tax bracket, state taxes, and filing status. Higher earners may see less due to higher marginal tax rates.
Cost of living raises are typically 2-4%, merit increases range from 3-7%, and promotions can be 10-25%. Research market rates for your position and document your achievements to justify your request.
Only the income above the bracket threshold is taxed at the higher rate, not your entire salary. You'll never take home less money due to a raise, though the marginal tax rate on the additional income may be higher.
Consider increasing your 401(k) contribution to maintain your current take-home pay while boosting retirement savings. This also reduces your taxable income, potentially keeping you in a lower tax bracket.
Important Raise Calculation Information
Raise calculations depend on individual tax situations, filing status, state taxes, and current income level. This calculator provides estimates based on 2025 tax rates and standard deductions. Actual take-home increase may vary based on other deductions, benefits changes, and specific tax circumstances. Consider the impact on retirement contributions, health insurance premiums, and other pre-tax deductions when evaluating raise offers. Marginal tax rates apply only to the additional income, not your entire salary. Consult with tax professionals for personalized advice on optimizing your raise impact and tax strategy.