I usually opt to work more during the holiday season because we get higher wages (holiday pay). I signed up for a lot of extra days and my co-workers keep telling me that because I’ll make more money, I’ll get taxed more. So I’ll be receiving less pay than I’d usually make without the overtime. Is that right? I feel stupid right now.
In: Mathematics
Note that in some countries, while marginal tax rates usually apply, some benefits or tax reliefs have hard limits, and a small gain might push you over the edge of that limit resulting in a net loss of income.
Example: The Netherlands, between 28000 and 48000 EUR, net gains are incredibly small or even negative
If you’re using such benefits, ensure you’re won’t exceed your max yearly income
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