Total tax paid
$13,134
Did you know your employer also pays tax on your salary? It costs the employer $3,023 to pay you $38,000. In other words, every time you spend $10 of your hard-earned money, $3.46 goes to the government.
Real tax rate
32.0%
So, with you and the employer both paying tax, what used to be a 26.6% tax rate now rises to 32.0%, meaning your real tax rate is actually 5.4% higher than what it seemed at first.