The Taxberg
$41,203
Net pay
$4,750
Tax the employer pays
$8,797
Tax you pay
Total tax paid
$13,547
Did you know your employer also pays tax on your salary? It costs the employer $4,750 to pay you $50,000. In other words, every time you spend $10 of your hard-earned money, $2.71 goes to the government.
Real tax rate
24.7%
So, with you and the employer both paying tax, what used to be a 17.6% tax rate now rises to 24.7%, meaning your real tax rate is actually 7.1% higher than what it seemed at first.