Total tax paid
$1,749
Did you know your employer also pays tax on your salary? It costs the employer $356 to pay you $7,020. In other words, every time you spend $10 of your hard-earned money, $2.49 goes to the government.
Real tax rate
23.7%
So, with you and the employer both paying tax, what used to be a 19.8% tax rate now rises to 23.7%, meaning your real tax rate is actually 3.9% higher than what it seemed at first.