Your next $1 · US · 2026
What does your next $1 actually add?
How much of a raise do you actually keep?
A raise never lands in full — federal tax, state tax and FICA all take a slice of the extra, not just your base salary. In the 22% bracket you keep roughly 71¢ of each new dollar in a no-tax state; high earners in California can keep barely half. Drag your salary and pick your state to see exactly what happens to your next $1 and next $1,000.
Verified 12 August 2026
Why a raise is taxed more than your salary
Your marginal rate — the tax on your next dollar — is higher than your effective rate across all your income, because it reflects the top bracket your income reaches. That's why a raise feels smaller than expected: it's all taxed at your highest rate, plus FICA, plus any state tax. In a high-tax state at a high income, more than half of each extra dollar can disappear.
Did your last raise actually change how you live?
See how the whole country answered on the US money mood page.