Your Salary Went Up — So Why Does Your Paycheck Look the Same?
Negotiating an extra $7,000 a year doesn't mean $7,000 more shows up in your bank account. That raise is subject to FICA tax — 6.2% for Social Security and 1.45% for Medicare, a combined 7.65% — on top of federal income tax at your marginal rate. And because federal tax is progressive, a raise can push part of your income into a higher bracket, meaning the raise itself gets taxed more heavily than your existing salary. Between FICA and federal tax, it's common for 20-40% of a nominal raise to disappear before it ever reaches your take-home pay.
This calculator takes your current salary, new salary, and the marginal tax rate that applies to the raise, then breaks out the FICA withholding and federal tax withholding separately. You'll see your after-tax raise on both a monthly and annual basis, plus a side-by-side comparison of your nominal raise percentage versus your real, after-tax raise percentage — handy for setting a realistic target the next time you're negotiating pay.
Frequently Asked Questions
No. FICA (7.65%) and federal income tax both apply to the raise, so 20-40% often disappears before it hits your paycheck.
Only the income within the new bracket is taxed at the higher rate — this is marginal tax, not your average rate on all income.
6.2% Social Security plus 1.45% Medicare. Social Security tax stops above the annual wage base, so high earners may see a slightly lower rate.
※ Simplified federal-only estimate; add your state and local tax rate separately for a fuller picture. Actual withholding may vary.