Question

I make $40,000 per year. I have been offered a promotion and a $5,000 raise per year. My average federal income tax rate will go up from 10% to 15% per year. Should I take the new job and the raise?

Answer 1

Yes

Explanation:

40000 x .10 is 4000 in tax. Total after tax would be 36,000

45,000 × .15 is 6750. Total after tax would be 38,250 which is more