The Taxberg
$803
Net pay
$83
Tax the employer pays
$197
Tax you pay
Total tax paid
$279
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, $2.79 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.