Total tax paid
$4,096
Did you know your employer also pays tax on your salary? It costs the employer $1,208 to pay you $16,700. In other words, every time you spend $10 of your hard-earned money, $2.45 goes to the government.
Real tax rate
22.9%
So, with you and the employer both paying tax, what used to be a 17.3% tax rate now rises to 22.9%, meaning your real tax rate is actually 5.6% higher than what it seemed at first.