Income Tax Calculator
What is your actual take-home pay after tax?
Knowing your net income (not just your gross salary) is the starting point for working out what you can comfortably borrow and repay. Use this calculator to see your take-home pay.
How does it work?
This calculator estimates your Australian income tax based on your gross salary and the current tax rates and thresholds. It accounts for the Medicare levy and provides an estimate of your annual and monthly take-home pay. Lenders use your net income (after tax) as the basis for assessing what you can afford to repay. Understanding your take-home pay is a useful first step before using the borrowing power calculator.
The calculator has been provided in good faith as a guidance tool only. Results are not financial advice, are a guide only, and are not a guaranteed outcome or quote. Borrowers should always discuss their individual situation with an Australian Credit Licensee or authorised Credit Representative.
Why your take-home pay matters for your home loan?
Lenders assess your net income
When working out how much you can borrow, lenders start with your income after tax. Knowing your true take-home pay gives you a more accurate starting point for understanding your borrowing capacity.
Your tax bracket
Different income levels attract different marginal tax rates. As your income increases, each additional dollar of income is taxed at a higher rate up to the current top marginal rate.
Medicare levy
Most Australian taxpayers pay the Medicare levy (currently 2% of taxable income) on top of income tax. Some low-income earners are exempt or pay a reduced rate.
Other deductions
This calculator estimates standard income tax. Your actual take-home pay may differ based on salary packaging, additional deductions, HECS repayments, or other factors. Your payslip is always the most accurate source.
How to use your take-home pay figure?
• Use your take-home pay figure as the input in the Budget Planner to map your expenses and see what is left for mortgage repayments.
• Run the Borrowing Power Calculator after this one to see how your income translates to a potential loan amount.
• If you have a HECS or HELP debt, your actual take-home pay will be lower than this calculator shows because HECS repayments are deducted by your employer before you receive your pay. Factor this in.
Some questions we get asked a lot.
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Lenders look at both. They start with gross income but then deduct estimated tax, living expenses, existing commitments, and other obligations to arrive at a net surplus that they assess against the proposed loan repayment. Your take-home pay gives you a useful starting point for understanding the picture.
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HECS repayments are deducted from your gross income by your employer, so your take-home pay is already reduced by them. Lenders also treat your HECS repayment as a commitment that reduces your serviceability.
Ready to see what you could actually borrow?
Use your take-home pay figure in the Borrowing Power Calculator, then book a discovery call to get the real picture.