Total tax paid
$1,996
Did you know your employer also pays tax on your salary? It costs the employer $394 to pay you $7,500. In other words, every time you spend $10 of your hard-earned money, $2.66 goes to the government.
Real tax rate
25.3%
So, with you and the employer both paying tax, what used to be a 21.4% tax rate now rises to 25.3%, meaning your real tax rate is actually 3.9% higher than what it seemed at first.