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 $29 to pay you $346. In other words, every time you spend $10 of your hard-earned money, $3.60 goes to the government.
Real tax rate
So, with you and the employer both paying tax, what used to be a 27.8% tax rate now rises to 33.3%, meaning your real tax rate is actually 5.5% higher than what it seemed at first.