The Taxberg
$63,112
Net pay
$3,795
Tax the employer pays
$26,888
Tax you pay
Total tax paid
$30,683
Did you know your employer also pays tax on your salary? It costs the employer $3,795 to pay you $90,000. 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.