The Taxberg
$832
Net pay
$83
Tax the employer pays
$168
Tax you pay
Total tax paid
$251
Did you know your employer also pays tax on your salary? It costs the employer $83 to pay you $1,000. 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.