Total tax paid
$8,981
Did you know your employer also pays tax on your salary? It costs the employer $3,312 to pay you $37,804. In other words, every time you spend $10 of your hard-earned money, $2.38 goes to the government.
Real tax rate
21.8%
So, with you and the employer both paying tax, what used to be a 15% tax rate now rises to 21.8%, meaning your real tax rate is actually 6.8% higher than what it seemed at first.