Total tax paid
$1,024
Did you know your employer also pays tax on your salary? It costs the employer $117 to pay you $4,000. In other words, every time you spend $10 of your hard-earned money, $2.56 goes to the government.
Real tax rate
24.9%
So, with you and the employer both paying tax, what used to be a 22.7% tax rate now rises to 24.9%, meaning your real tax rate is actually 2.2% higher than what it seemed at first.