Why do I only keep 60 cents of each dollar from my raise?

At salaries between $45,001 and $135,000, the marginal tax rate is 30% plus 2% Medicare = 32%. Above $135,000 it's 37% + 2% = 39%. The 'retention rate' shown tells you exactly how much you keep.

Does this include superannuation?

The take-home calculation excludes super (since it doesn't hit your bank account). However, the results show the super increase separately so you can see the full picture.

What if my raise crosses a HELP threshold?

Check the 'I have a HELP/HECS debt' box and the calculator will factor in the change in compulsory repayment rate. This can sometimes make a small raise feel smaller than expected.

Pay Rise Calculator Australia

Find out exactly how much of your pay rise actually reaches your bank account

Enter your current and new salary to see the real after-tax increase, factoring in marginal tax rates, Medicare levy and HELP/HECS repayments.

Pay Rise Details

Current Annual Salary ($)

New Annual Salary ($)

Tax Year

Residency Status

I have a HELP/HECS debt

I have private hospital cover

Pay Rise Impact

Your actual take-home increase

$6,550/year

$546/month

$252/fortnight · $126/week

Of every extra dollar you earn

65.5¢

reaches your bank account (the rest goes to tax, Medicare, HELP)

Before

Gross salary

$80,000

Take-home pay

$61,933

Income tax

$16,467

Medicare levy

$1,600

Effective tax rate

22.6%

After

Gross salary

$90,000

Take-home pay

$68,483

Income tax

$19,717

Medicare levy

$1,800

Effective tax rate

23.9%

Super impact

Your employer super contributions increase by $1,200 per year ($9,600 → $10,800)

Before vs After

See how your pay rise splits between take-home pay and deductions

How to Use This Calculator

1Enter your current annual salary (before tax)
2Enter your new annual salary after the pay rise
3Adjust tax year, residency and HELP/HECS status if applicable
4See your real take-home increase, marginal retention rate and before/after breakdown

Why Doesn't My Full Raise Reach My Bank Account?

Australia's tax system is progressive — the more you earn, the higher your marginal tax rate. When you get a pay rise, the extra income is taxed at your marginal rate, not your average rate.

For example, if you earn $100,000 and get a $10,000 raise, that extra $10,000 is taxed at 37% (plus 2% Medicare), so you keep about $6,100 of it. This calculator shows you the exact figures.

What Affects Your Take-Home Increase?

Marginal tax rate: Higher salaries push income into higher brackets. The 2024-25 brackets are: 0% up to $18,200, 16% $18,201-$45,000, 30% $45,001-$135,000, 37% $135,001-$190,000, 45% over $190,000.
Medicare levy: 2% of taxable income applies to most Australian residents.
HELP/HECS repayments: If you have a HELP debt, crossing a repayment threshold can add 1-10% of your income as an additional deduction.
Medicare Levy Surcharge: If you earn above $97,000 without private hospital cover, an extra 1-1.5% surcharge may apply.

Smart Moves When You Get a Pay Rise

•Consider salary sacrificing part of the raise into super — you save the difference between your marginal rate (up to 45%) and the 15% super contribution tax
•If you're near a HELP repayment threshold, be aware that crossing it increases your compulsory repayment rate
•Check if the raise pushes you into MLS territory — basic hospital cover might save you money
•Use the raise to boost your emergency fund or pay down high-interest debt first

Frequently Asked Questions

Official Sources

Estimates only. Not financial or tax advice. Full disclaimer for your rights and our limitations of liability.

Rates and thresholds last updated for the 2024–25 financial year.

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