LPT: Always take the raise when you’re offered one. Even if it moves you into the next tax bracket

There is literally no way that taking a raise will lower your take home income unless you’re bordering the line for welfare but that’s another discussion. We have a progressive tax rate. This means that if you move up a tax bracket, only the excess amount that is in the next tax bracket is taxed at that rate; your entire income does not move up a tax bracket.

[Table 1](https://taxfoundation.org/2017-tax-brackets/) explains this. Outside of welfare, not taking a raise hurts you 100% of the time


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  • I have literally never heard of someone not taking a raise.

  • This is definitely true nearly every time in the USA (with the exception of increases that cause you to lose special deductions or welfare). But you might have to recalculate your withholdings in order to make sure you are paying the correct amount. If you’re suddenly taking home less money after a raise (due to taxes only and not a corresponding chance in benefits costs) then you’re probably overpaying and will get a large refund. The IRS has a calculator online to determine your withholdings fairly accurately.

  • There are a few specific situations where this can happen.

    I once got a very small raise that pushed me over the threshold where you can no longer deduct up to $4,000 for tuition expenses, so my ~$500 raise ended up increasing my tax burden by about $1100.

  • Maybe not relevant for most people but my take home pay went down after a raise because I was no longer eligible for overtime.

  • What idiot thinks this?

  • This fucking sub. Smh

  • > There is literally no way that taking a raise will lower your take home income…

    Not true. My girlfriend got a raise and it made her take-home pay a few cents less than before. Minor, sure, but still possible.

  • Ah, US.

    For the UK if we got over the £40,000 tax bracket we have to pay 40% tax for everything we earn over that limit.

    It can be extremely painful to be just over the 40k barrier in the UK.

  • Got a $.25/hr raise once, bumped me up into the next bracket. My take home pay was $100 less per check after that.

  • LPT: Don’t always listen to what someone says about salary, they don’t live in the same place as you, taxes, rates and laws may differ from a place to another

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