The Taxberg
$22
Net pay
$2
Tax the employer pays
$4
Tax you pay
Total tax paid
$7
Did you know your employer also pays tax on your salary? It costs the employer $2 to pay you $27. In other words, every time you spend $10 of your hard-earned money, $2.51 goes to the government.
Real tax rate
23.2%
So, with you and the employer both paying tax, what used to be a 16.8% tax rate now rises to 23.2%, meaning your real tax rate is actually 6.4% higher than what it seemed at first.