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by redblacktree 699 days ago
That's not how tax brackets work, but it is a common misconception. If you salary goes up, your take-home goes up, full stop.

If you are making $191,950/year (the very top end of the 24% bracket for 2024) you will pay $39,110.50 in federal income tax, (before any deductions) for a net of $152,839.50. (You may notice that this is less than 24%) If you make an additional $1,000/year: $192,950, only the additional $1,000 is taxed at the 32% rate. Which makes your total federal income tax bill $320 more, and improving your net take-home to $153,519.50

Edit to add: I'm disappointed that sibling comments to mine are so degrading. We all had to learn this at some point.

2 comments

There are cases where if your salary goes up, your take-home goes down, especially for lower income levels. It’s just not on the basis of tax brackets. There are means-tested benefits that you can lose if you cross certain income levels where an increase in income of $5 can cost you thousands of dollars.
Yup. Most are for lower income levels but some affect middle class & up as well

(electric vehicle credits, financial aid for university, first time homeowner credits, or affordable homeownership breaks... etc)

I'm not disappointed. This is a classic case of someone who knows nothing about a topic making confident statements that will undoubtedly spread. People who do this should absolutely be ridiculed to discourage spreading total nonsense.

And to be clear we're not talking about some esoteric subject -- this is the most basic part of how your salary is taxed by the US government.