Total tax paid
$2,197
Did you know your employer also pays tax on your salary? It costs the employer $354 to pay you $7,000. In other words, every time you spend $10 of your hard-earned money, $3.14 goes to the government.
Real tax rate
29.9%
So, with you and the employer both paying tax, what used to be a 26.3% tax rate now rises to 29.9%, meaning your real tax rate is actually 3.6% higher than what it seemed at first.