Nominal vs. real raises
A 4% raise in a year with 3% inflation increases your purchasing power by only about 1%. The calculator divides (1 + raise) by (1 + inflation) to show the real change. A raise below inflation is a pay cut in disguise.
How much of a raise do you keep?
Your raise is taxed at your marginal rate plus 7.65% FICA plus state tax. For most people earning $50,000–$100,000 that means keeping roughly 65–75 cents of each new dollar.
Benchmarks to anchor a raise request
- Inflation over your last raise period.
- Market pay for your role — see our salary tables.
- Measurable value you added (revenue, savings, time).
Then use the step-by-step raise negotiation playbook.
Frequently asked questions
What is a good raise percentage in 2026?
A raise that beats inflation plus 1–2 points keeps you ahead. Promotions and job changes typically produce larger jumps than annual merit increases.
Can a raise lower my take-home pay?
No. Progressive brackets tax only the income above each threshold, so take-home always rises with gross pay (benefit cliffs from income-tested programs are a separate issue).
Last reviewed October 21, 2026 by the 55300 editorial team. Read our methodology & sources.