Pay Rise Calculator
See exactly how much of your pay rise you'll take home after tax
Calculate Your Pay Rise
Understanding Your Pay Rise
Why your raise seems heavily taxed
When you get a raise, it's taxed at your marginal rate - the rate that applies to your highest dollar of income. This is different from your average rate (total tax / total income).
Average tax rate: ~22%
Marginal rate: 30% + 2% Medicare = 32%
Your raise is taxed at 32%, not 22%
You can never "lose money" from a pay rise. The higher tax rate only applies to the additional income, not your entire salary.
Frequently Asked Questions
Will a pay rise push me into a higher tax bracket?
Yes, but only the income above the threshold is taxed at the higher rate. Australia uses a progressive tax system, so you always take home more money with a pay rise. The myth that you can "lose money" from a raise is false.
How is the tax on my raise calculated?
Your raise is taxed at your marginal tax rate - the rate that applies to your highest dollar of income. For example, if you earn $100,000, a raise would be taxed at 30% (plus 2% Medicare levy).
What is the difference between marginal and average tax rate?
Your marginal rate is the tax on your next dollar earned (e.g., 30%). Your average rate is your total tax divided by total income (e.g., 22%). Raises are taxed at the marginal rate, which is why they seem "more taxed" than your overall salary.
Should I negotiate for more salary or more super?
It depends on your circumstances. Super contributions are taxed at only 15%, compared to your marginal rate (potentially 30-45%). However, you can't access super until retirement. For most people, a mix is ideal.
Does my raise affect HECS/HELP repayments?
Yes, HECS repayments are based on your total income. A raise could push you into a higher repayment bracket (1-6% of income). Use this calculator with the HECS option enabled to see the impact.
How much of my raise will I actually keep?
After tax and Medicare levy, you'll typically keep 68-84% of your raise depending on your income level. If you have HECS debt, this may be reduced by an additional 1-6%.
Related Guides
See Your Full Salary Breakdown
Calculate your complete take-home pay including tax, Medicare, super, and HECS.
Open Salary CalculatorThis calculator uses 2025-26 ATO tax rates and is for informational purposes only. Individual circumstances may vary. Consult a tax professional for personal advice.
Last updated: February 2026