Raise tax study 2026 (2026)

The short answer

A single filer earning $75,000 keeps, on average, 66.0% of a $5,000 raise, about $3,302 a year. In Alaska the figure is 70.3%; in California it is 60.6%. The rest goes to federal income tax, Social Security and Medicare (FICA), and state tax.

This study runs a $5,000 raise through every state's 2026 rules with the same calculator used across this site. It measures the marginal tax rate: the tax on the next dollar, not your average rate. To learn how each layer works, see how paycheck taxes work.

What you keep at four salaries

Starting salary	Average kept of a $5,000 raise	Best state	Worst state
$40,000	76.5% ($3,826)	Alaska: 80.3%	Oregon: 71.0%
$75,000	66.0% ($3,302)	Alaska: 70.3%	California: 60.6%
$150,000	64.0% ($3,198)	Alaska: 68.3%	California: 57.8%
$250,000	61.2% ($3,061)	Alaska: 65.6%	California: 55.0%

Federal brackets and FICA dominate. The 12% and 22% federal brackets plus 7.65% FICA already take a large share before any state tax. At $250,000, the 0.9% Additional Medicare Tax and the 32% or 35% federal bracket cut the kept share further, and the Social Security cap ($184,500) can raise it for the portion of income above the cap.

States that keep the most and least at $75,000

The 8 states with neither an income tax nor a state payroll deduction tie for the most kept at 70.3%. At the other end:

State (least kept first)	Kept of $5,000	Share kept
California	$3,032	60.6%
Oregon	$3,050	61.0%
District of Columbia	$3,115	62.3%
Hawaii	$3,123	62.5%
Maine	$3,155	63.1%
Minnesota	$3,156	63.1%
Delaware	$3,168	63.3%
New Jersey	$3,186	63.7%
Vermont	$3,188	63.7%
Connecticut	$3,218	64.3%

See any single state in detail on its paycheck calculator page; each includes a "what a raise is worth" section.

Why raises are taxed differently

Federal brackets are marginal. A raise is taxed at the top rate you already reach, not at a new higher rate on all your income. See the 2026 federal tax brackets.
FICA is flat. 7.65% on wages up to $184,500 for Social Security and Medicare combined, plus Medicare only above that. See what MED EE is.
States vary. Some have no income tax, some a flat rate, and others rising brackets or surtaxes.
Withholding can look worse. Payroll systems annualize each paycheck, so a raise or bonus can look more heavily taxed on the stub than it is over the year. See what FITW is and bonus tax.

How to keep more of a raise

Send part of the raise to a traditional 401(k) or HSA; see pre-tax deductions.
Update your W-4 if withholding becomes too high or too low; see the W-4 guide.
Model your own numbers in the paycheck calculator before negotiating.

Single filer, salaried, no pre-tax deductions, no local taxes. Vermont figures are provisional pending official verification. This is an estimate, not tax advice.

Frequently asked questions

How much of a $5,000 raise do I keep?

On average across the 50 states and DC, a single filer earning $75,000 keeps about 66.0% of a $5,000 raise ($3,302). The range is 60.6% in California to 70.3% in Alaska.

Can a raise push me into a higher tax bracket and reduce my pay?

No. Only the dollars above a bracket threshold are taxed at the higher rate. A raise never lowers your take-home pay.

Why does my paycheck look smaller after a raise than I expected?

Each extra dollar is taxed at your marginal rate: federal bracket, 7.65% FICA and any state tax. That combined rate is often 30% to 40% at middle incomes.

How can I keep more of a raise?

Direct part of it to a traditional 401(k) or HSA. Those contributions reduce income tax on the dollars you defer.