Is jumping from 22% tax bracket to 24% tax bracket a big financial hit?

The good news is that tax brackets are "marginal" - meaning you only pay the higher rate on the income above that threshold, not on your entire income. So don't worry - getting a raise never results in taking home less money due to taxes! For 2025 filing (2024 income), single filers pay: - 10% on income up to ~$11,000 - 12% on income from ~$11,000 to ~$44,700 - 22% on income from ~$44,700 to ~$95,300 - 24% on income from ~$95,300 to ~$182,100 So with your new salary, only the amount OVER ~$95,300 will be taxed at 24%. The rest is still taxed at the lower rates. The difference between 22% and 24% on that portion is small - just an extra $2 per $100 earned in that range. Congrats on the raise! It's definitely worth it financially even with the bracket change.

I went through the same worry when I changed jobs last year. I was actually scared of making more money lol! Then I found this awesome tool at https://taxr.ai that helped me understand exactly how my taxes would change with the new salary. It has this tax bracket calculator that showed me the true impact of moving up brackets, and I realized I was way overestimating how much extra tax I'd pay. The tool also helped me identify some deductions I wasn't taking advantage of that offset some of the new tax impact. Definitely worth checking out if you're trying to figure out the real impact of your raise!

Just wanted to update after trying the taxr.ai site that was recommended. It was super helpful for my situation! I'm also getting a promotion soon that will bump me into a new bracket, and the calculator showed me I was only going to pay about $650 more in taxes on a $8,500 raise - way less than I feared. The explanations about marginal tax rates really cleared things up for me. They even have this feature that lets you compare different scenarios side by side, which helped me decide if I should put more in my 401k to offset some of the tax increase.

If you're concerned about your taxes with the new salary, I'd highly recommend getting through to the IRS for personalized advice. I know it sounds impossible with their wait times, but I used https://claimyr.com and it was a game-changer. They hold your place in line with the IRS and call you back when an agent is ready. I had questions about how my new salary and stock options would affect my quarterly estimated tax payments, and I actually got through to someone who walked me through everything. They even have a video showing how it works: https://youtu.be/_kiP6q8DX5c For me, the peace of mind from getting official answers directly from the IRS was worth it rather than stressing over whether I was understanding things correctly.

I need to eat my words and apologize to @12. I was so skeptical about Claimyr that I had to try it myself, and I'm shocked to say it actually worked exactly as advertised. After failing to get through to the IRS for days on my own, I got a call back within 2 hours using their service. The agent I spoke with cleared up my confusion about the tax bracket jump - turns out I was massively overestimating how much extra I'd owe. For anyone else worried about changing brackets, definitely get proper advice rather than stressing. The IRS agent explained that my effective tax rate would only increase by about 1% even though I was jumping to a new bracket, which was a huge relief.

Don't forget to consider other factors beyond just the federal tax bracket. When your income increases: 1. You might hit phase-out limits for certain tax credits or deductions 2. Your state taxes will likely increase too 3. Your Social Security and Medicare withholding will be higher 4. You might want to increase retirement contributions I'd definitely take the higher paying job though - just be smart about using some of that extra money for retirement contributions. Putting more in a 401k or traditional IRA could actually keep you in the lower bracket while building your future.

When I got a big promotion last year, my company's HR actually adjusted my withholding to account for the higher bracket so I wouldn't owe a bunch at tax time. Might be worth asking your new employer if they'll do something similar for you. Otherwise you might get surprised with a tax bill next April.

I made $112k last year and my effective tax rate was only about 18% after deductions, nowhere near the 24% bracket rate. Don't get too hung up on the bracket percentage - your actual tax rate will be much lower than that highest bracket percentage. Plus, definitely negotiate for more! Your new employer expects it, and the worst they can say is no. I always ask for 10-15% more than their initial offer and have usually gotten at least part of that.

Congratulations on the job offer! I went through a similar situation when I jumped from $85k to $115k about two years ago. I was terrified about the tax implications but it turned out to be much less scary than I thought. Everyone here is absolutely right about marginal tax rates - you only pay the higher percentage on the income above each threshold. In your case, going from $89k to $110k means only about $14,700 of your income will be taxed at 24% instead of 22%. That's literally just an extra $294 per year in federal taxes (2% of $14,700). When you factor in that you're getting a $21,000 raise, paying an extra $294 in taxes is pretty insignificant. You'll still be taking home significantly more money each month. One thing I wish I had done earlier was updating my W-4 with the new employer to account for the higher income. I ended up owing a bit at tax time because my withholdings weren't quite right for the new bracket. Definitely worth filling out a new W-4 accurately when you start! Take the job - the financial benefits far outweigh the modest tax increase!