The Taxberg
$3,988
Net pay
$402
Tax the employer pays
$887
Tax you pay
Total tax paid
$1,289
Did you know your employer also pays tax on your salary? It costs the employer $402 to pay you $4,875. In other words, every time you spend $10 of your hard-earned money, $2.64 goes to the government.
Real tax rate
24.4%
So, with you and the employer both paying tax, what used to be a 18.2% tax rate now rises to 24.4%, meaning your real tax rate is actually 6.2% higher than what it seemed at first.