<prompt> Human: Update: My question has been answered. Thank you everyone for your help.Hello,Lets say I currently make 37,500 a year and Im in the position to get a raise soon. Lets say Ill get a 2,500 raise so Id be making 40,000.Filing single, no dependents.From what I understand, making anything over 37,950 will bump me into a higher tax bracket.Source: This is where the confusion starts. Im currently in the 15 bracket, but making over 37,950 would put me in the 25 bracket.The 15 bracket pays in federal tax: 932.50 plus 15 of the excess over 9325.The 25 bracket pays in federal tax: 5,226.25 plus 25 of the excess over 37,950.5,226.25 25 bracket - 932.50 15 bracket 4,293.75.Does this mean if I get a raise from 37,500 to 40,000 that I would actually be losing 1,793.75?Any help is very much appreciated.  <response>: No, thats not how tax brackets work. Youll pay the increased percentage on all earnings above said bracket. 