Question 1

Is a 5% raise good?

Accepted Answer

A 5% raise is roughly in line with the long-run average annual merit increase in the US (typically 3-5% in normal years, rising to 4-6% in tight labour markets). It generally outpaces inflation in low-inflation years (under 3%) but loses ground in high-inflation years. If your role is in demand and you have not changed jobs in 3+ years, you should push for 7-10%; the labour-market premium for moving employers averages 10-15%.

Question 2

How is a raise calculated?

Accepted Answer

The basic math is current salary × (1 + raise %). A 5% raise on a $90,000 salary is $90,000 × 1.05 = $94,500, an annual delta of $4,500 or $375/month gross. The take-home delta is smaller because the increase is taxed at your marginal rate — usually 22-24% federal plus FICA plus state — so $375 gross typically becomes $235-275 net per month.

Question 3

Does my raise change my tax bracket?

Accepted Answer

Probably not in a way that hurts you. The US uses marginal brackets — only the dollars above each threshold are taxed at the higher rate. Crossing from the 22% bracket to the 24% bracket only means your additional dollars are taxed at 24%; the dollars below the threshold keep their lower rates. The myth that "a raise can leave you worse off" is almost always false for income taxes specifically (it can be true for means-tested benefits like ACA subsidies or Medicaid, but not for taxes).

Question 4

How much of a raise should I ask for?

Accepted Answer

Anchor to two data points. First, what does the role pay at the 75th percentile in your state? Our base salary calculator at /tools/salary-calculator will give you that band. Second, what is the going rate for your specific skill set at other employers? If both of those numbers exceed your current salary by more than 10%, asking for 8-12% is reasonable; if you are already at the 75th percentile, focus on equity, bonus, or title rather than base.

Question 5

What is the difference between a merit raise and a cost-of-living raise?

Accepted Answer

A merit raise rewards performance and is typically 2-7% in a given year. A cost-of-living adjustment (COLA) tracks inflation — typically 2-4% in normal years — and exists to keep your real purchasing power flat. Many employers bundle the two into a single "annual increase" number; if your raise matches the CPI exactly, you have not actually been rewarded.

Question 6

How is the take-home delta different from the gross delta?

Accepted Answer

The take-home delta is the dollar amount that actually lands in your bank account after taxes. Most of a raise hits at your marginal rate (the highest bracket your income reaches), so a $5,000 gross raise typically yields a $3,250-3,750 take-home boost depending on your state. The widget above does this math automatically.

Question 7

What is the 5-year cumulative impact of a raise?

Accepted Answer

Even a small raise compounds. A $4,500/year raise compounded for 5 years (assuming no further raises) is $22,500 — but if future raises are calculated as a percentage of your new salary, the long-term gap widens further. That is why pushing for a slightly larger raise early in your career has outsized lifetime impact: future raises are anchored to your new base.

Question 8

Should I negotiate a raise or change jobs?

Accepted Answer

The honest answer is "usually both." Internal merit raises rarely exceed 5-7% in a given year; the average pay jump from switching employers is 10-15%, sometimes higher in tight markets. The most effective tactic is to interview elsewhere, secure a competing offer, then negotiate internally with the external offer in hand. Workzil's auto-apply makes the "interview elsewhere" part faster.

Question 9

Does this calculator account for bonuses and equity?

Accepted Answer

No. The widget models base salary only. If your total comp includes a bonus (typically 5-25% of base) or equity (variable), apply the raise % to your base and add the bonus/equity components separately — your bonus target usually scales with your base, so a raise typically lifts both.

Question 10

How accurate is the take-home math?

Accepted Answer

It is a planning-grade estimate — accurate within a few percentage points for the typical single-filer salaried worker. Federal uses 2025-2026 brackets and the standard deduction; FICA uses the 2025 Social Security wage base; state is the top marginal bracket scaled to an effective rate. Local city taxes, married-filing-jointly status, 401(k) and HSA contributions, and itemised deductions can shift the number by ±2-5 percentage points.

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