Pay Rise Calculator Australia: How Much Extra Will You Take Home? (2026-27)
A $10,000 pay rise on $80,000 adds $6,800 a year to your take-home pay in FY2026-27.
See Your Pay Before and After a Rise
Current Pay
New Pay
Where your $10,000 pay rise goes:
What to check next
People reading this page usually work these out too.
That $10,000 rise is $130.77 a week after tax, because each extra dollar is taxed at your marginal rate, not your average rate. Enter your salary and raise (in dollars or as a new salary) in the calculator above to see what you keep.
How Does a Pay Rise Affect Take-Home Pay?
A pay rise increases your take-home pay by less than the gross amount because the additional income is taxed at your marginal tax rate, not your average tax rate.
Australia's progressive income tax system applies higher rates to each additional dollar earned above a threshold. An employee on $80,000 has an average tax rate of about 20% (income tax plus Medicare levy), but the marginal rate on every extra dollar is 30% plus 2% Medicare levy. That means for every $1,000 of gross pay rise, only $680 reaches the bank account. The remaining $320 goes to the ATO as income tax and Medicare.
This pay rise calculator computes your exact before-and-after take-home pay for FY2026-27 using the current Australian tax brackets. Enter your current base salary and the raise amount to see the net benefit broken down by week, fortnight, and year. For a full breakdown of your current pay, use our Take-Home Pay Calculator.
Example: A $10,000 pay rise on an $80,000 salary yields $6,800 extra take-home pay per year, or $130.77 extra per week after tax and Medicare.
How Do I Calculate My Pay Rise?
Divide the increase by your old salary and multiply by 100. A rise from $80,000 to $84,000 is $4,000 ÷ $80,000 = 5%. To go the other way, multiply your salary by 1 plus the percentage. After tax in 2026-27, that $4,000 rise is worth $2,720 a year, or $52.31 a week.
| Rise on $80,000 | New salary | Extra before tax | Extra after tax | Per week |
|---|---|---|---|---|
| 3% | $82,400 | $2,400 | $1,632 | $31.38 |
| 4.75% | $83,800 | $3,800 | $2,584 | $49.69 |
| 5% | $84,000 | $4,000 | $2,720 | $52.31 |
| 10% | $88,000 | $8,000 | $5,440 | $104.62 |
What Does the Pay Rise Impact Table Show?
The table below shows how pay rises of different sizes translate into after-tax income across 5 salary levels in the 2026-27 financial year. Each row shows the extra income tax and Medicare levy the raise attracts, then the net gain per year and per week.
| Base Salary | Gross Raise | Extra Tax + Med | Net Annual Benefit | Net Weekly Boost |
|---|---|---|---|---|
| $60,000 | +$5,000 | -$1,675 | +$3,325 | +$64/wk |
| $80,000 | +$10,000 | -$3,200 | +$6,800 | +$131/wk |
| $100,000 | +$15,000 | -$4,800 | +$10,200 | +$196/wk |
| $120,000 | +$20,000 | -$6,750 | +$13,250 | +$255/wk |
| $150,000 | +$20,000 | -$7,800 | +$12,200 | +$235/wk |
*Calculations include income tax and Medicare levy for FY2026-27 Australian residents. HECS-HELP repayments, salary sacrifice, and the "Medicare Levy Surcharge" are excluded. Use our HECS-HELP Calculator to model student loan repayment impact.
Why Doesn't a 10% Pay Rise Give 10% More Take-Home Pay?
A 10% gross pay rise produces less than 10% additional take-home pay because the raise is taxed at the marginal rate, which is higher than the average rate applied to total income.
Australian resident income tax rates are progressive: each rate applies only to the income inside its bracket. In FY2026-27 the resident rates are 0% on the first $18,200, 15% from $18,201 to $45,000, 30% from $45,001 to $135,000, 37% from $135,001 to $190,000 and 45% above $190,000. The 2% Medicare levy is added on top, except on low incomes. If you are single and not entitled to the Seniors and Pensioners Tax Offset, you pay no levy on a taxable income of $28,011 or less, the levy phases in at 10 cents per dollar over $28,011 up to $35,013, and the full 2% applies above that (2025-26 thresholds, the latest the ATO has published).
Worked Example: 10% Rise on $90,000
An employee earning $90,000 receives a 10% pay rise of $9,000, bringing the new gross salary to $99,000. The entire $9,000 falls within the $45,001-$135,000 bracket, so the marginal rate is 32% (30% tax + 2% Medicare). The additional tax is $2,880. The net take-home increase is $6,120 per year, or $117.69 per week. That is a 8.7% increase in take-home pay from a 10% gross rise. View the full tax bracket schedule on our Australian Tax Brackets page.
Marginal vs Average Tax Rate
| Salary | Average Tax Rate | Marginal Rate (incl. Medicare) | Cents Kept per Extra $1 |
|---|---|---|---|
| $45,000 | 10.2% | 33.5% | 66.5c |
| $80,000 | 20.2% | 32% | 68c |
| $120,000 | 24.1% | 32% | 68c |
| $150,000 | 26.4% | 39% | 61c |
| $200,000 | 29.9% | 47% | 53c |
An employee on $80,000 keeps 68 cents of every additional dollar earned. An employee on $200,000 keeps only 53 cents. On $45,000 the rate is higher than the bracket suggests because the Low Income Tax Offset shrinks as income rises. The gap between average and marginal rates widens as income increases.
What Is the Average Pay Rise in Australia?
Wages rose 3.2% over the year to the June quarter 2026, according to the Australian Bureau of Statistics Wage Price Index. On average full-time adult ordinary time earnings of about $108,352 a year (ABS, May 2026), that is roughly $3,467 before tax.
Your own pay rise depends on how your pay is set. Award-covered workers received the Fair Work Commission's annual increase from 1 July, while agreement and contract rises depend on the employer. The ABS publishes wage growth by industry and sector in each Wage Price Index release.
How Does Inflation Affect a Pay Rise?
A pay rise below the inflation rate results in a real wage decrease. With the CPI up 3.8% over the year to June 2026 (ABS), a 3% nominal pay rise is a real cut of about 0.8% in purchasing power. The 3.2% average wage rise also trailed inflation. Use our Income Tax Calculator to compare your current and proposed salary in after-tax terms, then compare the rise with the CPI to see whether the offer beats inflation.
Who Uses This Calculator?
This pay rise calculator is built for 3 primary groups of Australian workers: employees preparing for salary negotiations, job seekers comparing offers, and HR professionals modelling compensation changes.
- Employees negotiating a raise: calculate the exact after-tax benefit before your salary review meeting, so you know what the gross figure you ask for is worth each week.
- Job seekers comparing offers: a $10,000 higher gross salary at a new company does not mean $10,000 more in the bank. Enter your current and offered salary to see the real take-home difference.
- HR and payroll professionals: model the cost-to-company impact of proposed raises, including the extra employer superannuation at the 12% SG rate.
- Contractors considering permanent roles: this calculator takes a base salary, not a day rate. To compare a contract day rate against a permanent salary offer, use our Contractor vs Employee Calculator for a side-by-side breakdown.
- Part-time workers gaining extra hours: calculate the net pay increase from moving from 3 days per week to 4 days, or from part-time to full-time hours.
How to Negotiate a Pay Rise
1. Build Your Case
Base the request on your results, not on inflation alone. List your achievements over the last 6-12 months, such as money you saved the company, new revenue you brought in, or duties you took on outside your job description.
2. Research the Market
Check current job listings and recruitment agency salary guides for your exact role and location. Knowing the "market rate" turns an emotional request into an objective business conversation.
3. Timing is Everything
The best time to ask is either 3-4 months before the end of the financial year (when budgets are being set) or immediately after successfully completing a major project.
4. Focus on the Gross
Negotiate in terms of the Total Package or Base Gross Salary, not the amount you want to take home each week. Your employer does not control the tax rates, so a take-home figure can change even when your salary does not.
What Are Common Mistakes When Calculating a Pay Rise?
Employees and employers make 5 frequent errors when estimating the value of a pay rise. Each error gives a wrong figure for what the raise is worth to you.
- Dividing the gross raise by 52 weeks: this ignores tax entirely. A $10,000 raise is not $192 per week; it is $131 per week after the 32% marginal rate on an $80,000 salary.
- Using the average tax rate instead of the marginal rate: on $80,000 your overall effective rate of 20.2% does not apply to the raise. The marginal rate of 30% (plus 2% Medicare) applies to every additional dollar within the $45,001-$135,000 bracket.
- Forgetting the superannuation guarantee increase: a $10,000 base salary raise also adds $1,200 to superannuation at the 12% SG rate. This is real compensation, but it does not appear in take-home pay. Model this with our Superannuation Calculator.
- Ignoring HECS-HELP threshold crossings: a pay rise that pushes repayment income above $69,528 triggers student loan repayments of 15 cents per dollar above the threshold. This effectively adds 15% to the marginal rate on income in that first band.
- Confusing gross salary with total package: some employment contracts quote "total remuneration" inclusive of superannuation. A $110,000 total package is only $98,214 in base salary after extracting 12% super. Check whether the quoted figure includes or excludes the employer SG contribution.
Which Related Calculators Help with Pay Rise Planning?
Use the calculators below to model the rest of a salary change: the full tax breakdown, the Low Income Tax Offset, salary sacrifice, superannuation, and the gross salary needed for a take-home target.
- Take-Home Pay Calculator: see the complete breakdown of income tax, Medicare levy, and net pay at any gross salary.
- Income Tax Calculator: calculate your total Australian income tax liability for FY2026-27 including the Low Income Tax Offset (LITO).
- Salary Sacrifice Calculator: model how redirecting part of your pay rise into pre-tax super contributions reduces your taxable income.
- Superannuation Calculator: calculate the employer SG contribution on your new salary and project long-term super balance growth.
- Gross Pay Calculator: reverse-calculate the gross salary required to achieve a specific take-home pay target after a raise.
How this calculator works▼
Calculations for the pay rise breakdown are based on:
- Calculating your ATO income tax and Medicare levy before the raise.
- Re-calculating your ATO income tax and Medicare levy after the raise.
- Taking the exact difference to find the net financial benefit.
- Assuming the pay rise is added to Base Salary (not inclusive of Super).
Frequently Asked Questions
Understand the Tax Brackets
Our tax brackets guide lists each income threshold where the resident tax rate changes.
View Tax Brackets →Sources & References
- 1Individual income tax rates, Australian Taxation Office
- 2Marginal tax rates, Australian Taxation Office
Last verified: 9 October 2026. Our content is based on the latest information from official Australian government sources.
What to check next
People reading this page usually work these out too.