Did you know your employer also pays tax on your salary? It costs the employer $4,216 to pay you $52,000. In other words, every time you spend $10 of your hard-earned money, $3.74 goes to the government.
Real tax rate
34.6%
So, with you and the employer both paying tax, what used to be a 29.3% tax rate now rises to 34.6%, meaning your real tax rate is actually 5.3% higher than what it seemed at first.
