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 $4,826 to pay you $58,500. In other words, every time you spend $10 of your hard-earned money, $2.64 goes to the government.
Real tax rate
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.