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Rising Star
You will only be taxed at the higher rate for the amount you earn over that threshold.
So for example, pretend the tax brackets are as follows:
1-24,999 is taxed at 5%
25k-49,999 is taxed at 10%
If your salary is 25k, 24,999 of your salary would be taxed at 5%, then 1 dollar would be taxed at 10%.
So, you won't lose money by getting a raise, you will just pay a higher rate on the range over the threshold for the new tax bracket. Which still isn't fun, but much less detrimental. I don't think most companies would consider a raise for a tax bracket change though in my experience.
This!
Plus you can explore pre tax options like 401k, HSA, and others that will lower your taxable amount. Also interest on student loans and others things come into play.
I’m not a tax expert, but don’t turn down money because of taxes 😃
If you never want to make more than what the tax bracket you’re referring to is then sure, if you have bigger goals, I would not think twice about it. I agree with the earlier post. I’ve received lots of raises in my career and never made less.
I don’t consider the employee’s tax situation when I’m looking at market adjustment requests/request for raise. Everyone’s tax situation is very different and we wouldn’t be able to maintain any semblance of pay equity. If you’re worried about it, don’t ask for the raise.
Google “marginal tax return”
Wow....that is a big tax bracket jump and it totally stinks. I think it shoud def be considered.
Did you not read any of the other posts here? If you don't accept a raise because you're worried you'll make less money due to higher taxes after what everyone else has posted, you're an idiot