Total tax paid
$3,060
Did you know your employer also pays tax on your salary? It costs the employer $891 to pay you $12,987. In other words, every time you spend $10 of your hard-earned money, $2.36 goes to the government.
Real tax rate
22.0%
So, with you and the employer both paying tax, what used to be a 16.7% tax rate now rises to 22.0%, meaning your real tax rate is actually 5.3% higher than what it seemed at first.