Guide
How Much Tax Do You Pay on a Pay Rise?
A simple guide to estimating the after-tax value of a raise in Australia.
Written for Australian workers and job seekers · Updated 2026-09-13 · General information only
Plain-English answer
Helpful before using the calculator
Updated 2026-09-13
Worked example
Compare the whole old salary with the whole new salary
For a move from $90,000 to $100,000, calculate each complete scenario with the same financial year, HELP setting and deductions. The difference between the two take-home results is the useful value of the raise. Do not apply the top marginal rate to the whole $100,000 salary; progressive rates apply to slices of taxable income.
Check before relying on it
- Use the same settings for the old and new salary.
- Check whether the raise is cash salary or total package.
- Look for a change in compulsory HELP repayment as well as income tax.
- Compare the annual gain and the amount added to each normal pay.
What this page helps you answer
What this pay, tax or salary topic means in simple terms.
What number or setting to check next in the calculator.
Which assumption could change the answer most.
When to stop using a rough estimate and ask payroll, the ATO or a qualified adviser.
Compare old salary and new salary
Run both salaries through the calculator and compare the difference in take-home pay. That is clearer than trying to estimate the raise from the gross increase alone.
HELP debt can change the result
A pay rise can move repayment income into a higher HELP repayment band, which may reduce the apparent gain in bank-account pay.
Super may be separate
If your raise is quoted as a package increase, confirm whether the extra amount includes employer super.
Before you make a decision
Use the guide to understand the topic, then check the number with your own inputs. If the result affects a resignation, job offer, visa decision, redundancy, tax return or family budget, confirm the details with the right official source or adviser.
Check the financial year.
Confirm whether super is included or added on top.
Check HELP debt and tax residency settings.
Compare weekly, fortnightly and monthly cashflow.
Common questions
Does a pay rise reduce my take-home pay?
A normal pay rise should increase take-home pay, but tax and repayments can mean the increase is smaller than the headline amount.
Is a pay rise taxed like a bonus?
Final annual tax is based on total income. Payroll withholding timing can differ, especially for bonuses.