StubRate · Guides · 7 min read
How Much of a Raise Do You Actually Keep After Taxes?
A 10% raise is not 10% more in the bank. Here’s how marginal tax brackets, FICA, and job costs shrink a raise.
Marginal rate is the raise tax
Your effective tax rate on all income might be 14%. Your next $8,000 of salary might be taxed at 22% federal plus FICA plus state. That is why a “$8k raise” can feel like $400 extra a month instead of $650.
Never multiply the raise by (1 − effective rate). Use the calculator at current salary and at new salary, then subtract.
Work a simple before/after
Example shape: $85,000 → $93,500 (10%). Federal tax, FICA, and a 5% 401(k) all scale up. State tax scales if your state taxes wages. The delta in monthly take-home is the raise you can actually budget.
StubRate makes that two-run comparison fast. Bookmark the page and toggle the salary field.
Raises that come with extra office days
A promotion that adds two commute days can eat the raise. Gas, parking, and lunches are not taxed as a “raise cost,” but they spend like one.
If the new role is 5 days in-office after 2 days hybrid, run true take-home—not just net pay—before you celebrate.
Ask for the net, not the round number
“I need $500 more per month net to make this worth the scope” is a stronger negotiation than “I want 12%.” You can reverse-engineer the gross from StubRate by testing salaries until monthly take-home clears the target.
Managers think in gross bands. You live in net. Translate.
FAQ
How much of a $10,000 raise do I take home?
Often roughly $6,000–$7,500 after federal tax, FICA, and state tax, depending on your bracket and location. The last dollars of income are taxed at your marginal rate, which is higher than your average rate.