The Taxberg
$22
Net pay
$2
Tax the employer pays
$6
Tax you pay
Total tax paid
$9
Did you know your employer also pays tax on your salary? It costs the employer $2 to pay you $28. In other words, every time you spend $10 of your hard-earned money, $3.07 goes to the government.
Real tax rate
28.3%
So, with you and the employer both paying tax, what used to be a 22.4% tax rate now rises to 28.3%, meaning your real tax rate is actually 5.9% higher than what it seemed at first.