Total tax paid
$7,274
Did you know your employer also pays tax on your salary? It costs the employer $1,131 to pay you $37,708. In other words, every time you spend $10 of your hard-earned money, $1.93 goes to the government.
Real tax rate
18.7%
So, with you and the employer both paying tax, what used to be a 16.3% tax rate now rises to 18.7%, meaning your real tax rate is actually 2.4% higher than what it seemed at first.