Bonus vs Raise Calculator

A $5,000 bonus is taxed once; a 5% raise pays every year and compounds. Compare them after tax.

FAQs

Is a bonus or raise better?

Raises compound year after year and lift your base for future raises; bonuses are one-time. After tax, a modest raise often beats a bonus within 1–2 years.

How are bonuses taxed vs raises?

Bonuses face flat 22% federal withholding; raises are taxed at your marginal rate through normal withholding. At filing time both follow your tax bracket.

Does a raise affect my 401(k) match?

Often yes — matches are a percent of salary, so a raise can increase your free employer money too.

Estimate only: results use 2026 federal and state tax figures with simplified assumptions (single filer, standard deduction). Actual withholding varies by W-4, pre-tax deductions, and local taxes. Not tax advice.

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