The Taxberg
$1,607
Net pay
$165
Tax the employer pays
$393
Tax you pay
Total tax paid
$558
Did you know your employer also pays tax on your salary? It costs the employer $165 to pay you $2,000. In other words, every time you spend $10 of your hard-earned money, $2.79 goes to the government.
Real tax rate
25.8%
So, with you and the employer both paying tax, what used to be a 19.7% tax rate now rises to 25.8%, meaning your real tax rate is actually 6.1% higher than what it seemed at first.