The Taxberg
$773
Net pay
$69
Tax the employer pays
$227
Tax you pay
Total tax paid
$296
Did you know your employer also pays tax on your salary? It costs the employer $69 to pay you $1,000. In other words, every time you spend $10 of your hard-earned money, $2.96 goes to the government.
Real tax rate
27.7%
So, with you and the employer both paying tax, what used to be a 22.7% tax rate now rises to 27.7%, meaning your real tax rate is actually 5% higher than what it seemed at first.