Are you better off making 50,000 a year or 45,000 a year due to falling into different tax brackets?

Answer 1

$50,000. is better than $45,000. in my books.

But then in my books $45,001. is better than $45.000.

When your tax rate goes up,, the higher rate is not charged on all the income,, just the amount in the higher tax bracket.
More is better,,

Answer 2

You're always better off making more. If the additional income takes you into a higher bracket, it doesn't change the amount of tax paid on the original amount - only the amount of the increase that's into the higher bracket is taxed at the higher rate.

Answer 3

As long as the tax rate is below 100%, you're ALWAYS better off with a higher income. Since the maximum rate is only 35%, you'll never have to worry about losing money by making more.