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Comment by tzs

There is indeed a widespread misconception that if more income pushes you into a higher bracket it might make you total after tax income go down. Many people think if you are in the N% bracket it means you tax is N% of your taxable income.

Here are a couple of graphs that show how it actually works: https://imgur.com/gallery/aS1zJg7

The first shows what tax would be on a single person in 2023 whose income is entirely salary and whose only deduction is the standard deduction, for income up to $1 million.

The second shows what the tax would be as a fraction of your total income.

parent tzs 2 years ago

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