A raise is still a raise regardless of if you cross a tax bracket.
In a state government job, and we all just got a raise. For many in my department, that crossed them into a higher federal bracket. So naturally I heard people agonizing over how it is a “fake raise”
I had to explain how it is still a raise. And explain that you aren’t taxed 22% on all 40k, you are taxed at 10% for the first 10k, and then 22% for the next 20k, making an over all tax rate of ~13%.
I also had to explain that all the 401k and pension withholdings also go up with that raise.
So I wanted to take a moment to remind you all that a raise is still a raise in compensation regardless of if you cross in to a new tax bracket. I’m sure there might be exceptions, but not for the average person.