This ... possible. Being in a higher bracket... that you actually lose money. For example, suppose your earnings increase so that you move from the 10% tax bracket to the 15% bracket. Then, from the Marginal Tax Rates, Standard Deductions, and Exemptions table, you will pay a higher tax rate on....the entire amount of your earnings. Your net pay in the higher tax bracket with the increased earnings will be... than your former net pay prior to the increase