The Taxberg
$2,427
Net pay
$146
Tax the employer pays
$1,034
Tax you pay
Total tax paid
$1,180
Did you know your employer also pays tax on your salary? It costs the employer $146 to pay you $3,462. In other words, every time you spend $10 of your hard-earned money, $3.41 goes to the government.
Real tax rate
32.7%
So, with you and the employer both paying tax, what used to be a 29.9% tax rate now rises to 32.7%, meaning your real tax rate is actually 2.8% higher than what it seemed at first.