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by brndn 3657 days ago
I have found there to be some common misconceptions about how tax brackets work, at least in the US. I'm not sure if this is how it works in your country and you might already be aware of this, but just in case it is helpful to anyone...

Only the income that is above the boundary of that higher bracket is taxed at the higher rate. All of the income below the boundary is taxed at the lower rate. E.g. if you make $105k and a higher tax bracket starts at $100k, only $5k is taxed at the higher rate.
2 comments
thaeli 3657 days ago
Romanian tax law is really weird; I'm guessing this is probably related to the IT worker tax exemption.

Good advice for most of the rest of the world though :)

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twic 3657 days ago
The OP mentioned that the problem with the higher tax bracket is that it means "a lot more paperwork and headaches".

Something similar exists in the UK: if you earn a salary of £99,999 or less (and don't fall foul of certain another criteria), you can pay tax via your employer, with no paperwork on your part. But if you earn £100,000 or more, you have to file a tax return of your own.

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