See what a raise really adds to your life — after federal tax and FICA, per year and per month.
Net estimates use federal brackets, the standard deduction and FICA. Estimates only — not tax advice.
A 5% raise is not 5% more spending money
Every extra dollar is taxed at your marginal rate (plus FICA), so a 5% raise typically adds about 3.8–4.2% to your take-home. That is still worth having — a $3,000 gross raise is roughly $2,300 net, or $190 a month — but knowing the real number keeps negotiations honest.
Negotiating with net numbers
When comparing a raise against a job change, compare net deltas: benefits, retirement match and pre-tax deductions can make a smaller gross offer the bigger paycheck.
Percent vs. dollar: pick the framing that helps you
Percentages scale — 5% of a $120,000 salary is $6,000, the same percent on $50,000 is $2,500. When you know the market rate for your role, negotiate toward a number (“market data puts this role at $X”) rather than a percent, because percentages anchor to your current pay, which may already be below market.
The inflation check
A 3% raise at 3% inflation is a real-terms pay freeze. To actually get ahead, your raise should beat inflation — historically ~3% per year — by 2 points or more. Asking with this frame (“cost of labor rose 4.5% in my market”) is one of the most defensible negotiation positions there is.
Frequently asked questions
How much is a 5% raise on $60,000?
$3,000 more gross per year — roughly $2,300 after federal tax and FICA, or about $190/month.
Will a raise push me into a higher tax bracket?
Only the dollars above the bracket threshold are taxed at the higher rate — your whole salary never jumps.
How much is a $1 raise per hour a year?
About $2,080 gross per year at 40 hours × 52 weeks, or roughly $1,600–1,700 after taxes.
What raise keeps up with inflation?
Historically 3–4%. To gain real ground, aim higher — a raise that merely matches inflation keeps your purchasing power flat.
How often should I get a raise?
Most employers review annually; top performers commonly receive 4–6%, while switching jobs typically brings 10–20% jumps.
Is a bonus better than a raise?
A raise compounds — it lifts every future year, raises overtime baselines and retirement contributions. Bonuses are one-time money.