Total tax paid
$3,070
Did you know your employer also pays tax on your salary? It costs the employer $2,300 to pay you $21,900. In other words, every time you spend $10 of your hard-earned money, $1.40 goes to the government.
Real tax rate
12.7%
So, with you and the employer both paying tax, what used to be a 3.5% tax rate now rises to 12.7%, meaning your real tax rate is actually 9.2% higher than what it seemed at first.