<prompt> Human: I have been salaried at 100kyr for going on three years. This is the first pay increase Ive seen. Will this be a noticeable increase after taxes?  <response>: You may not understand how tax brackets work.As you move up in income, you move up in tax brackets. Even if you stay in the same bracket, a larger percentage of your income is now in that higher bracket. Simplistically, imagine a system where: 0 - 1000 bracket is 5 1001 - 10,000 bracket is 20If you made 900, you would be paying 900 x .05 45.If you made 2200, you would be paying 1000 x .05 1200 x .20 290.Note that despite going up into a new bracket, only the portion of your income in the new bracket gets taxed at the higher rate.If youre worried about paying more by moving into a new bracket, consider the following:You make 999, and so pay .05x999 49.95 in taxes. If you make 2 more, youre earning 1001 and paying .05x100050.21.20 50.20 in taxes. Youre earning 2 more, paying 0.25 more in taxes, for a net increase of 1.75. This is despite going up from a very low 5 bracket to a high 20 bracket. 