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“Don’t take that raise, it’ll put you in a higher tax bracket!”
Some people who don’t understand tax brackets actually believe this is good advice.
For anyone here who doesn't understand why this is bad advice, it's because income tax increases only apply to income made above that threshold.
Let's do a simple example and pretend there's only 2 tax brackets. From 0-50k tax is 10% and over 50k it's 20%.
If you make exactly 50k your tax burden will be 5k and you'll take home 45k a year.
If you get a 1k raise, only the final thousand is taxed at the higher rate, so your tax burden will be 5200 (10% of the first 50k and 20% of the remainder), and you'll take home 45,800 a year.
So even though you change tax brackets, you still make more money.
USA here: Or people saying "Don't work overtime, they'll just take it all in taxes".
Well, my marginal tax rate on income has never been 100% (yet). While there are other factors to consider if you feel working overtime is worth it or not to you personally. That is not a valid logic to use.