Total tax paid
$3.70
Did you know your employer also pays tax on your salary? It costs the employer $3.70 to pay you $27. In other words, every time you spend $10 of your hard-earned money, $1.37 goes to the government.
Real tax rate
12.1%
So, with you and the employer both paying tax, what used to be a 0% tax rate now rises to 12.1%, meaning your real tax rate is actually 12.1% higher than what it seemed at first.