> If they are in the US they are going to pay ~30-35% That raise is on top of their salary so the additional dollars are taxed at the highest rate. For taht ex

> If they are in the US they are going to pay ~30-35% That raise is on top of their salary so the additional dollars are taxed at the highest rate. For taht example executive, federal tax alone on the additional dollars is 35% most likely (35% for sure if single, probably 35% if married with a working spouse earning less). Then add state tax which here would likely be 10.5% and then add medicare tax at 2.35% and there may also be unemployment insurance tax and perhaps other assorted smaller deductions. So yes, for additional dollars from a raise a good rule of thumb is that only 50% can reach you.