Which federal bracket this lands in
The $16,100 standard deduction leaves $87,900 of taxable income, which puts the last dollar in the 22% federal bracket. Only $37,500 of it is actually taxed at 22% — the income below $50,400 is taxed at the lower rates first, which is why the effective rate lands well under the bracket number. The 22% band runs to $105,700, so a raise of about $17,800 would be needed before any dollar is taxed at 24%.
Where this sits in Hawaii's schedule
Hawaii runs a graduated schedule of 12 bands. After $9,144 of state deductions it taxes $94,856, putting the top dollar in the 7.6% band and producing $6,100 of state tax — 5.87% of gross pay. Its 7.6% band ends at $125,000 of state taxable income, $30,144 above where this salary lands.
Marginal rate is not the rate paid
Federal income tax of $14,050 on $104,000 of gross pay is 13.51% of the salary, against a 22% marginal bracket — a gap of about 8.5 points. The bracket describes the next dollar earned, not the pay already earned, and quoting the bracket as the tax rate overstates the bill by $8,830 at this salary.
What a $1/hr raise is actually worth
A dollar more an hour is $2,080 more a year at 2,080 paid hours. Against a combined marginal rate of about 37.25% -- the 22% federal band, Hawaii's 7.6%, 1.45% Medicare and 6.2% Social Security -- roughly $1,305 of that reaches the bank, or about $0.63 of the extra dollar.