Total tax paid
$1,088
Did you know your employer also pays tax on your salary? It costs the employer $196 to pay you $5,004. In other words, every time you spend $10 of your hard-earned money, $2.17 goes to the government.
Real tax rate
20.9%
So, with you and the employer both paying tax, what used to be a 17.8% tax rate now rises to 20.9%, meaning your real tax rate is actually 3.1% higher than what it seemed at first.