Total tax paid
$1,394
Did you know your employer also pays tax on your salary? It costs the employer $383 to pay you $7,020. In other words, every time you spend $10 of your hard-earned money, $1.99 goes to the government.
Real tax rate
18.8%
So, with you and the employer both paying tax, what used to be a 14.4% tax rate now rises to 18.8%, meaning your real tax rate is actually 4.4% higher than what it seemed at first.