The Taxberg
$4,955
Net pay
$516
Tax the employer pays
$1,295
Tax you pay
Total tax paid
$1,810
Did you know your employer also pays tax on your salary? It costs the employer $516 to pay you $6,250. In other words, every time you spend $10 of your hard-earned money, $2.90 goes to the government.
Real tax rate
26.8%
So, with you and the employer both paying tax, what used to be a 20.7% tax rate now rises to 26.8%, meaning your real tax rate is actually 6.1% higher than what it seemed at first.