How Much Tax on $100,000 in Australia? (2025-26 Guide)

Hitting a six-figure salary feels great, but the real question is how much of that $100,000 sticks around after the ATO, Medicare and your future self (via super) get paid. Here’s the 2025-26 view so you can plan pay-cheque to pay-cheque.

Quick Snapshot

2025-26 Tax Brackets Explained

From 1 July 2025 the brackets compress, shaving the middle rates. The structure looks like this:

2025-26 income tax calculation on $100,000 salary

Bracket range	Amount taxed	Rate	Tax due
$0 – $18,200	$18,200.00	0%	$0.00
$18,201 – $45,000	$26,799.99	16%	$4,287.84
$45,001 – $135,000	$55,000.01	30%	$16,500.00
$135,001 – $190,000	$0.00	37%	$0.00
$190,001+	$0.00	45%	$0.00
Total	$100,000.00	—	$20,787.84

Step-by-Step Calculation

1. Apply the brackets: add the tax from each tier above to reach $20,787.84 in income tax.
2. Add Medicare Levy: 2% of $100,000 = $2,000.
3. Check offsets: LITO and LMITO phase out well below $100k, so no offset applies.
4. Total tax bill: $20,787.84 + $2,000 = $22,787.84.
5. Net pay: $100,000 − $22,787.84 = $77,212.16.

These figures line up with the legislated 2025-26 tax scales, so you can benchmark your pay slip using the same structure the ATO applies.

What Lands in Your Bank Account?

Most salaried workers are paid fortnightly. Expect roughly $2,970 every two weeks before any salary sacrifice, HECS/HELP repayments or private health adjustments. Paid monthly? Budget around $6,434 a month. Those numbers assume you are not caught by the Medicare Levy Surcharge (see below).

Medicare Levy & Surcharge

The base Medicare Levy is automatic at 2%. Singles earning above $97,000 without hospital cover also pay the Medicare Levy Surcharge (MLS):

• $97,001 – $113,000: 1% surcharge → $1,000 extra at $100k
• $113,001 – $151,000: 1.25%
• $151,001+: 1.5%

Add the surcharge if you skip private cover, which drags total tax to $23,787.84 and lowers take-home to $76,212.16.

Superannuation On Top

Your employer must contribute 11% super on top of salary, adding $11,000 to your package. If you salary sacrifice an extra $5,000 (within the $30,000 concessional cap), you reduce taxable income to $95,000, cut tax by roughly $1,600 and boost retirement savings simultaneously.

Living on $100k in 2025

Post-tax income of $6.4k per month stretches differently across cities:

• Sydney/Melbourne: $2,200–$3,200 rent, $500 groceries, $400 transport leaves ~$2k for savings, debt or lifestyle.
• Brisbane/Perth: Slightly cheaper rents ($1,800–$2,400) free up $500–$800 extra each month.
• Regional hubs: Lower housing costs mean you could bank 35–40% of each pay cycle.

Ways to Trim Your Tax Bill

1. Pre-tax Super Contributions

Sacrificing $8,000 saves roughly $1,120 in tax (30% marginal rate vs 15% contributions tax) while still keeping you under the concessional cap once employer payments are included.

2. Legit Work Deductions

Track union fees, protective clothing, tools, and the fixed-rate working-from-home method. A $3,000 deduction lowers tax by about $900.

3. Private Hospital Cover

Basic hospital policies can cost similar to the MLS you’d otherwise pay, while giving you some private system access and avoiding the surcharge entirely.

4. Investment Loan Interest

Interest on investment property or share portfolio loans is deductible, reducing your taxable income if arranged correctly. Keep records for your accountant.

Career Progression Impact

With the 30% bracket stretching to $135k, every extra dollar between $100k and $135k sees you keep 70 cents (before Medicare). Jumping from $100k to $120k nets roughly $13,600 after tax; reaching $150k places only the final $15k in the 37% bracket.

Frequently Asked Questions

Is $100,000 still a competitive salary?

Yes. The latest ABS data puts full-time ordinary earnings around the mid-$90k mark, so $100k remains above average.

What’s the marginal rate at $100k?

You sit squarely in the 30% bracket. Add the 2% Medicare levy to understand why each extra dollar of taxable income hands over 32 cents unless you salary sacrifice.

How much super accumulates from $100k?

Staying at $100k for a decade with 11% employer contributions generates ~$156,000 in contributions alone (before investment returns). Boosting with regular sacrifice can push that considerably higher.

Do I need private health insurance?

If you earn $100k and skip hospital cover, budget for the 1% MLS. Buying an entry-level hospital policy often costs a similar amount while keeping the surcharge off your notice of assessment.