100000 USD
5000 USD

Each bracket's rate applies only to the income above its threshold, so a raise that crosses a threshold is taxed at the higher rate only on the portion above it — take-home pay after the raise is never below take-home pay before it.

Top bracket rateSecond bracket rateFirst bracket rate
Marginal rateEffective rate
Take-home pay lost by taking the raise0
Kept share of raise78

Interactive artifact by Delineo