Career & HR
Salary, tax & workplace calculators
Pay Raise After-Tax Calculator
See your real net pay rise after tax — and whether it crosses a bracket. Accurate, instant and free — for US · UK · India.
What these mean:
What these mean:
What these mean:
TX: net raise $7,035 on gross raise $10,000. Before: $58,075 net; after: $65,110 net. Marginal rate on raise: 29.6%. TX has no state income tax.
Net raise: $7,035 — marginal rate on raise: 29.6%
Gross before: $70,000 → after: $80,000. Real raise uses Fisher equation. Inflation adjusted in D15 params above.
How net raise is calculated
The calculator evaluates the take-home net function at both salaries and subtracts. Every deduction layer (income tax, social contributions, state taxes) is applied at the new salary, so the result reflects your true marginal cost of moving from old to new.
Net raise formula
net(new) minus net(old)
US example: $70k→$80k TX single. Gross raise = $10,000. Net raise = $7,035. Marginal rate on raise = ($10,000 − $7,035) ÷ $10,000 = 29.65% (22% federal + 7.65% FICA).
Bracket creep
which boundary, how much in each band
US 2026 single: 22% band runs up to $105,700 taxable ($121,800 gross with $16,100 std deduction). A raise from $118k to $128k grosses $1,800 into the 24% band. UK: 40% band from £50,271 taxable. India new regime: 15% band from ₹12,00,001 taxable (after ₹75,000 std deduction).
Bracket creep doesn't make your whole income more expensive — only the slice above the threshold is taxed at the higher rate. But it does mean a smaller fraction of the raise stays in your pocket.
UK £100,000 trap
effective 60% marginal rate
Between £100,000 and £125,140 the Personal Allowance (£12,570) is withdrawn at £1 per £2 of income. With 40% income tax on the raise plus an extra 20% effective rate from lost allowance, a raise in this band yields only 40p in every £1 (plus 2% NI on the raise up to £50,270 — reducing it further to about 38p). The calculator flags this band explicitly.
India §87A cliff
rebate lost above ₹12,00,000 taxable
New regime (FY 2025-26): ₹75,000 std deduction then slabs 5%/10%/15%… §87A: zero tax up to ₹12L taxable. A raise from ₹10L to ₹13L gross lifts taxable from ~₹8.75L to ~₹11.75L (after ₹75k std deduction), then adds 15% on the slice above ₹12L minus marginal relief. Net raise is ~₹2.74L on a ₹3L gross raise (91% efficiency — the old ₹10L is already below the cliff, so no rebate is lost here).
Real (inflation-adjusted) raise
Fisher equation
Example: $7,035 net raise at 4.2% US CPI-U (May 2026) → real raise ≈ $6,740 in today's purchasing power. A “big” raise in a high-inflation year may be smaller in real terms than it appears.
Related tools
Frequently asked questions
Not always — and even when it does, only the part of your income above the threshold is taxed at the higher rate, not your whole salary. The calculator shows the exact net increase and flags when a raise crosses a bracket boundary.
On a typical middle-income US salary, expect to keep about 70% of a raise after federal income tax and FICA — less in a state with income tax. In the UK a raise crossing £50,270 is taxed at 40% + 2% NI; crossing £100,000 hits an effective 60%. The calculator computes your exact net raise.
Bracket creep is when a raise lifts part of your income into a higher tax band, so the marginal rate on the raise is higher than your previous rate. It does not change the tax on your existing income — only the new slice — but it does mean less of the raise reaches your pocket.
Under the new regime, taxable income up to ₹12,00,000 pays zero tax via the §87A rebate. A raise that lifts you just over ₹12L removes the rebate — marginal relief limits the extra tax to roughly the amount you went over, but the first slice of that raise is heavily taxed. The calculator flags this cliff.
Your real raise is the net increase after inflation is removed — what your purchasing power actually gains. A 5% raise when inflation is 4% is only about a 1% real gain. Enter an inflation rate to see your real raise.
Method, assumptions & references
Methodology: US net raise uses 2026 standard deduction ($16,100 single / $32,200 MFJ) and IRS Rev.Proc.2025-32 brackets. The 22% bracket (single) covers taxable income $14,600–$55,900; 24% from $55,900 (taxable) i.e. approximately $72,000–$105,700 taxable ($88,100–$121,800 gross). UK: Personal Allowance £12,570, higher-rate threshold £50,270, PA taper £100,000–£125,140. India new regime: §87A rebate ceiling ₹12,00,000 taxable; ₹75,000 standard deduction; 4% health & education cess. EPF on actual basic or ₹15,000/mo ceiling. Marginal-rate flag keys on income-tax brackets only (NI/FICA band effects are reflected in the net raise but not in the boolean bracket-creep flag). Real raise uses linear approximation of Fisher equation.
Estimates based on standard assumptions
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