The Taxberg
₹ 425,943
Net pay
₹ 21,546
Tax the employer pays
₹ 74,057
Tax you pay
Total tax paid
₹ 95,603
Did you know your employer also pays tax on your salary? It costs the employer ₹ 21,546 to pay you ₹ 500,000. In other words, every time you spend ₹ 10 of your hard-earned money, ₹ 1.91 goes to the government.
Real tax rate
So, with you and the employer both paying tax, what used to be a 14.8% tax rate now rises to 18.3%, meaning your real tax rate is actually 3.5% higher than what it seemed at first.