I'm moving up a tax bracket, but netting less income. What options do I have to increase my net income?

Question

A raise at work (yay!) pushed me from into a higher Federal and State tax bracket in New Jersey (boo). As a result of the increased tax rate, I'll actually be bringing home less money than I was previously. I'm awful with money and I need to find out what options I have to make the most of this situation.

Answer 1

Since any higher tax rate can apply only to the additional money you are earning, you can't be netting less income because of the taxes.  How did you figure you would be bringing home less money?

Answer 2

You are misunderstanding how tax brackets work.  If you go into the next bracket, the only income affected by the new bracket is the amount that's over the cutoff for that bracket, so at most, part of the new money is taxed at the higher rate, which is always WAY under 100 percent.  The money you were making before is still taxed the same as it was.  So it's not possible to make more gross, but net less because of the new bracket.