Total tax paid
$ 18,839
Did you know your employer also pays tax on your salary? It costs the employer $ 9,000 to pay you $ 180,001. In other words, every time you spend $ 10 of your hard-earned money, $ 1.05 goes to the government.
Real tax rate
10.0%
So, with you and the employer both paying tax, what used to be a 5.5% tax rate now rises to 10.0%, meaning your real tax rate is actually 4.5% higher than what it seemed at first.