Salary Increase & Bonus Calculator Australia 2026
How much of a salary increase or a bonus you keep after tax and contributions, and whether your pay keeps pace with inflation
Your raise
Forecast from the IMF World Economic Outlook, . You can enter your own figure.
–
| Annual | Now | With the raise |
|---|---|---|
| Gross | – | – |
| Net | – | – |
Both amounts are calculated under the 2026 rules, so they show the raise alone.
The shaded band on the rates chart below marks the slice of pay that your raise or bonus adds.
Rates at a glance
Hover, tap or drag across the chart to read another salary; arrow keys move along it.
A raise in Australia: an example
Take a gross salary of A$90,532 a year. A 4% raise adds A$3,621 gross. Under the 2026 rules, A$2,462 of it reaches net pay, which is 68% of the extra amount; tax and contributions take 32%.
The IMF expects consumer prices in Australia to rise by 3.9% in 2026 (World Economic Outlook, October 2026). Compared with the same salary under the 2025 rules, the raised salary brings 4.3% more net pay, so its purchasing power changes by +0.4%. To keep pace with 3.9% inflation, the gross salary would have to rise by at least 3.5%.
How much of a 4% raise you keep at different salaries
| Gross salary a year | Extra gross | Extra net pay | Kept | Purchasing power |
|---|---|---|---|---|
| A$45,000 | A$1,800 | A$1,312 | 72.9% | +0.6% |
| A$68,000 | A$2,720 | A$1,850 | 68% | +0.5% |
| A$91,000 | A$3,640 | A$2,475 | 68% | +0.4% |
| A$140,000 | A$5,600 | A$3,346 | 59.8% | 0.0% |
| A$180,000 | A$7,200 | A$4,284 | 59.5% | 0.0% |
| A$270,000 | A$10,800 | A$5,562 | 51.5% | -0.2% |
Why a raise is taxed more than your salary as a whole
Income tax rises in steps. Your salary as a whole pays the average rate, but each extra unit of pay is taxed at the rate of the band it falls into, plus the contributions due on it. That rate on the last slice, the marginal rate, decides how much of a raise you keep. Above a contribution ceiling the marginal rate can fall again; where an allowance or a credit phases out, it can be higher than the top tax rate.
Raise or bonus
A raise is paid every month and also raises your starting point for next year. A bonus is paid once. Over a full year, both are usually taxed together with the rest of your pay, so the same amount leaves a similar net result. Payroll can still treat a bonus differently: some countries withhold tax on it at a flat rate and settle the difference later, cap contributions per pay period, or tax special payments under rules of their own. The calculator notes this where it applies.
Employers here withhold tax on a bonus using a separate method, so your payslip may show a different amount. This figure is what you keep once your tax for the year is settled.
Raise and inflation
A raise only increases what you can buy if net pay grows faster than prices. Because tax takes a larger share of the extra pay, net pay usually grows by less than gross pay in percent. Where tax brackets are not raised in line with prices, part of a raise that only offsets inflation goes to a higher tax rate (bracket creep). The calculator compares your current pay under last year’s rules with the new pay under this year’s rules, so changes to the brackets count.
Sources: inflation from the IMF World Economic Outlook database (October 2026), average consumer prices; taxes and contributions from the calculator’s 2026 rules for Australia.