The Taxberg
$3,996
Net pay
$422
Tax the employer pays
$1,793
Tax you pay
Total tax paid
$2,215
Did you know your employer also pays tax on your salary? It costs the employer $422 to pay you $5,788. In other words, every time you spend $10 of your hard-earned money, $3.83 goes to the government.
Real tax rate
35.7%
So, with you and the employer both paying tax, what used to be a 31% tax rate now rises to 35.7%, meaning your real tax rate is actually 4.7% higher than what it seemed at first.