The Taxberg
$873
Net pay
$87
Tax the employer pays
$185
Tax you pay
Total tax paid
$272
Did you know your employer also pays tax on your salary? It costs the employer $87 to pay you $1,058. In other words, every time you spend $10 of your hard-earned money, $2.57 goes to the government.
Real tax rate
23.8%
So, with you and the employer both paying tax, what used to be a 17.5% tax rate now rises to 23.8%, meaning your real tax rate is actually 6.3% higher than what it seemed at first.