Total tax paid
$895
Did you know your employer also pays tax on your salary? It costs the employer $197 to pay you $5,006. In other words, every time you spend $10 of your hard-earned money, $1.79 goes to the government.
Real tax rate
17.2%
So, with you and the employer both paying tax, what used to be a 14% tax rate now rises to 17.2%, meaning your real tax rate is actually 3.2% higher than what it seemed at first.