The Taxberg
$42,668
Net pay
$4,538
Tax the employer pays
$12,332
Tax you pay
Total tax paid
$16,870
Did you know your employer also pays tax on your salary? It costs the employer $4,538 to pay you $55,000. 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.