Total tax paid
$9.70
Did you know your employer also pays tax on your salary? It costs the employer $9.70 to pay you $87. In other words, every time you spend $10 of your hard-earned money, $1.11 goes to the government.
Real tax rate
10.0%
So, with you and the employer both paying tax, what used to be a 0% tax rate now rises to 10.0%, meaning your real tax rate is actually 10% higher than what it seemed at first.