The Taxberg
Net pay
Tax the employer pays
Tax you pay
Total tax paid
Did you know your employer also pays tax on your salary? It costs the employer $316 to pay you $7,500. In other words, every time you spend $10 of your hard-earned money, $2.91 goes to the government.
Real tax rate
So, with you and the employer both paying tax, what used to be a 24.8% tax rate now rises to 27.9%, meaning your real tax rate is actually 3.1% higher than what it seemed at first.