$1 an hour more: what a pay rise is actually worth after tax
An extra dollar an hour sounds small. Full time, it is $1,976 a year before tax. Here is what you keep.
Asking for "a dollar more an hour" is one of the most common pay conversations in Australia. Full time at 38 hours a week, that's $1,976 a year before tax. How much of it you keep depends on where your pay sits in the tax brackets.
| Hourly rate | Current salary | Extra take-home a year | Extra a fortnight | You keep |
|---|---|---|---|---|
| $25 to $26 | $49,400 | $1,314 | $50.54 | 67% |
| $30 to $31 | $59,280 | $1,314 | $50.54 | 67% |
| $35 to $36 | $69,160 | $1,344 | $51.68 | 68% |
| $40 to $41 | $79,040 | $1,344 | $51.68 | 68% |
| $50 to $51 | $98,800 | $1,344 | $51.68 | 68% |
| $60 to $61 | $118,560 | $1,344 | $51.68 | 68% |
| $70 to $71 | $138,320 | $1,205 | $46.36 | 61% |
| $80 to $81 | $158,080 | $1,205 | $46.36 | 61% |
Full time, 38 hours a week, 52 weeks. 2026–27 resident tax rates, Medicare levy and low income tax offset, no HELP debt.
Why it changes
Between $45,000 and $135,000 you pay 30% tax plus 2% Medicare on each extra dollar. Near the bottom of that range, the low income tax offset is also phasing out, which quietly takes a bit more. Once you pass $135,000, the rate on extra dollars rises to 37%.
Don't forget super
Your employer pays 12% super on top, so a $1 an hour raise also adds about $237 a year to your super.
Negotiating tip
With inflation at 3.5%, a raise that doesn't lift your take-home by at least that much is a pay cut in real terms. Our inflation breakdown shows the gross raise you need at each salary.
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