How does a raise affect my taxes?

A raise only taxes the additional income at your marginal rate — not your entire income. For example, a $10,000 raise in the 22% bracket adds about $2,200 in federal tax, not 22% of your total income. You always take home more after a raise.

How much tax do I save with a 401(k)?

401(k) contributions reduce your taxable income dollar-for-dollar. If you are in the 22% bracket, every $1,000 contributed saves $220 in federal taxes. The 2025 contribution limit is $23,500 ($31,000 if over 50).

Does moving states really save on taxes?

It can make a significant difference. Moving from California (13.3% top rate) to Texas (0% income tax) on a $100,000 income could save $5,000-8,000/year in state taxes. However, consider property taxes, sales taxes, and cost of living differences.

How does marriage affect my tax bracket?

Filing jointly roughly doubles the bracket thresholds, which benefits couples with unequal incomes. A "marriage bonus" happens when one spouse earns significantly more. A "marriage penalty" can occur when both spouses earn similar high incomes.

Tax Scenario Planner

Compare two tax scenarios side by side. See exactly how a raise, state move, marriage, adding a dependent, or changing your 401(k) contribution would change your total taxes and after-tax income.

Data updated for 2025 tax year

Current Scenario

Income

Filing Status

State

401(k) Contribution

Dependents

What-If Scenario

Income

Filing Status

State

401(k) Contribution

Dependents

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