True or False? Making More Money Could Mean Taking Home Less Money

“If you get a raise you’ll be in a higher tax bracket and have to pay so much more in taxes that you’ll end up actually making less than before the raise.”?

Have you ever heard a version of this? This idea just won’t go away, but it definitely isn’t true. The misunderstanding is probably due to not understanding what “marginal tax rates” are and how they actually work. If you could use a refresher on that, or want a full explanation of exactly why this myth isn’t true you can get the full story here.