Total tax paid
$1,645
Did you know your employer also pays tax on your salary? It costs the employer $315 to pay you $6,500. In other words, every time you spend $10 of your hard-earned money, $2.53 goes to the government.
Real tax rate
24.1%
So, with you and the employer both paying tax, what used to be a 20.5% tax rate now rises to 24.1%, meaning your real tax rate is actually 3.6% higher than what it seemed at first.