Total tax paid
$1,040
Did you know your employer also pays tax on your salary? It costs the employer $275 to pay you $5,750. In other words, every time you spend $10 of your hard-earned money, $1.81 goes to the government.
Real tax rate
17.3%
So, with you and the employer both paying tax, what used to be a 13.3% tax rate now rises to 17.3%, meaning your real tax rate is actually 4% higher than what it seemed at first.