In short: On a $95,000 salary in 2026-27 you pay about $20,920 in income tax and Medicare levy, leaving $74,080 a year or $6,173 a month. Add a HECS-HELP debt and a further $3,821 comes out under the 2026-27 marginal repayment scale, dropping take-home pay to $70,259. Lenders assess you on net income, so this is the number that sets your borrowing power.
- Your gross income$95,000
- Your income tax + Medicare levy$20,920
- Your HECS-HELP repayment (est.)$0
- Your take-home pay$74,080 a year · $6,173/mo
- Partner gross / tax / netNot entered
- Combined monthly take-home$6,173
Resident rates for 2026-27 including the 2% Medicare levy. Excludes the Medicare levy surcharge, offsets, salary packaging and deductions. HECS-HELP repayments use the 2026-27 marginal scale: nil to $69,528; 15c per $1 above $69,528 to $129,717; $9,028 plus 17c per $1 above $129,717 to $186,050; 10% of repayment income at $186,051 and over. Thresholds are indexed each year — confirm current rates at ato.gov.au.
Combined take-home pay: $74,080 a year
That is a general estimate on standard assumptions. Every lender applies its own expense benchmarks, income shading and policy, so the real figure moves from lender to lender. Gorakh spent years as a senior credit officer deciding exactly these questions. Send him the numbers above and he will tell you what is realistic and which lenders fit — at no cost to you for home loans.
- A former senior credit officer reads itGorakh assessed loan applications on the lender side before he became a broker.
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Most people know their gross salary and almost nobody knows their net. Yet net income, minus living expenses and other commitments, is exactly what a credit assessor works with. This calculator closes that gap for you and your partner in one view.
How this calculator works
Enter your gross annual income, your partner's gross income if you have one, and your HECS-HELP balance. The tool applies the resident tax scale, adds the 2% Medicare levy, estimates a compulsory study loan repayment, and reports take-home pay both annually and monthly for each of you and combined.
Gross income
Use your salary before tax and before salary sacrifice, plus any income you can evidence over time: regular overtime, commission, second-job wages, rent. Lenders shade some of these, which is a separate question covered in our guides to overtime, bonus and commission income and rental income and how lenders shade it.
Partner income
Entering a second income shows the combined monthly figure, which is the household number a joint application is built on. It also shows each person's tax separately, which matters when you are deciding whose name a property or an investment loan should sit in.
HECS-HELP balance
Entering a balance switches on an estimated compulsory repayment. Since 1 July 2025 study-loan repayments are worked out on a marginal basis, which means the rate applies only to the income above the threshold rather than to your whole income. That change cut most people's repayment substantially.
| 2026-27 repayment income | Compulsory repayment |
|---|---|
| $0 to $69,528 | Nil |
| $69,529 to $129,717 | 15c for each $1 over $69,528 |
| $129,718 to $186,050 | $9,028 plus 17c for each $1 over $129,717 |
| $186,051 and over | 10% of your total repayment income |
Note that "repayment income" is not the same as taxable income. It adds back reportable fringe benefits, reportable super contributions, net investment losses and exempt foreign income, so a negatively geared investor or someone salary sacrificing can have a repayment income well above their taxable income. The calculator uses gross salary as a proxy. Thresholds are indexed every year, so confirm the current figures at ato.gov.au — your notice of assessment is the only authority on the actual amount.
The 2026-27 resident tax scale
| Taxable income | Tax on this income |
|---|---|
| $0 to $18,200 | Nil |
| $18,201 to $45,000 | 15c for each $1 over $18,200 |
| $45,001 to $135,000 | $4,020 plus 30c for each $1 over $45,000 |
| $135,001 to $190,000 | $31,020 plus 37c for each $1 over $135,000 |
| $190,001 and over | $51,370 plus 45c for each $1 over $190,000 |
The 2% Medicare levy sits on top of every line. The calculator includes it. It does not include the Medicare levy surcharge, which applies to higher earners without appropriate private hospital cover, and it does not apply the low income tax offset or any deductions.
Worked example
A Craigieburn couple: you earn $95,000 with a $25,000 HECS-HELP balance, your partner earns $70,000 with no study debt.
| You | Partner | |
|---|---|---|
| Gross income | $95,000 | $70,000 |
| Income tax plus Medicare levy | $20,920 | $12,920 |
| Estimated HECS-HELP repayment | $3,821 | $0 |
| Take-home pay | $70,259 | $57,080 |
| Monthly | $5,855 | $4,757 |
Combined take-home pay is $127,339 a year, or $10,612 a month.
Check the arithmetic on the $95,000 salary. Tax on the first $18,200 is nil. The next $26,800 to $45,000 at 15% is $4,020. The next $50,000 to $95,000 at 30% is $15,000. That is $19,020 of income tax. The Medicare levy at 2% of $95,000 is $1,900. Total $20,920. Gross $95,000 less $20,920 leaves $74,080. The study-loan repayment is 15c for each dollar above $69,528: $95,000 − $69,528 = $25,472, and 15% of that is $3,821. Take-home pay is therefore $70,259, or $5,855 a month.
Now put that against a mortgage. At $10,495 a month combined, a $600,000 loan at 6.00% p.a. over 30 years costs $3,597 a month, or 34% of net income. That is workable but tight, and it is before childcare. The mortgage repayment calculator lets you test other loan sizes against the same net figure.
What this calculator does not include
- Deductions. Work-related expenses, investment property costs and negative gearing all reduce taxable income. Investors should also read our guide to negative gearing.
- Offsets and rebates, including the low income tax offset and private health rebate.
- Salary packaging. Common in health and not-for-profit roles, and treated differently by different lenders.
- The Medicare levy surcharge for higher earners without private hospital cover.
- Superannuation. Employer contributions sit outside your gross salary figure. Voluntary contributions do reduce take-home pay, which is the trade-off in the First Home Super Saver calculator.
- Capital gains, which are taxed at your marginal rate on the taxable portion. See the capital gains tax calculator.
Why lenders care about the net number
A credit assessor takes your net monthly income, subtracts declared living expenses or the household expenditure measure benchmark, whichever is higher, subtracts repayments on other debts and credit card limits, and checks what is left against the proposed repayment assessed at your rate plus 3 percentage points. Our guide to living expenses and HEM explains that benchmark in detail.
Two consequences follow. First, a pay rise lifts borrowing power less than you expect, because tax takes a share of it. Second, clearing a study debt or a car loan can lift borrowing power sharply, because the whole repayment comes back into surplus. The borrowing power calculator shows the effect, and how to improve borrowing power sets out the levers in order.
If you are self-employed, this calculator is a rough guide only. Lenders work from your last one or two tax returns and notices of assessment, often adding back depreciation and one-off expenses. Our self-employed loans page explains how that assessment is done.
Frequently asked questions
How much tax do I pay on $95,000 in Australia?
For 2026-27 a resident on $95,000 pays $19,020 in income tax plus a $1,900 Medicare levy, a total of $20,920, leaving $74,080. That is an effective rate of about 22% even though the top dollar is taxed at 30%. The figure excludes study loan repayments, the Medicare levy surcharge, offsets and any deductions you claim.
Does HECS-HELP debt affect my home loan?
Yes, in two ways. The compulsory repayment reduces the net income a lender assesses, and most lenders also treat the outstanding balance as a commitment. A repayment of a few thousand dollars a year can move borrowing power by tens of thousands. Paying a study loan out before you apply sometimes helps, but only if it does not gut your deposit.
Do lenders use gross or net income?
Both. Gross income is the starting point and the number quoted in policy, but serviceability is calculated on net monthly income after tax, then reduced further by living expenses and other commitments. This is why two applicants on the same gross salary can be approved for very different amounts.
Is the Medicare levy included in these figures?
Yes. The calculator adds the 2% Medicare levy to the income tax result, which is how it appears on your notice of assessment. It does not add the Medicare levy surcharge, an extra charge for higher-income earners who do not hold private hospital cover. Low-income earners may pay a reduced levy or none at all.
Can I use this to work out an investment property's tax effect?
Not directly. This tool taxes salary income only. For a geared investment you need to add rent, then subtract interest, rates, insurance, management fees and depreciation. Our investment property cashflow calculator does that and shows the weekly cost after tax.
Talk to GNT Finance
Knowing your take-home pay is step one. Turning it into an approval is step two, and that is where Gorakh Timilsina's years assessing loan files on the lender's side of the desk are worth having in your corner. Our home-loan service is at no cost to you in most cases.
Book a free consultation or call 0426 403 703.
This page is general information only and not legal, tax or financial advice. Laws change — confirm current rules with the State Revenue Office, the ATO or a licensed professional.
Written by Gorakh Timilsina
Founder, CEO & Senior Mortgage Consultant at GNT Finance. Gorakh started as a broker assistant, spent years as a senior credit officer assessing loan applications, and now helps Melbourne families get the right loan approved. English, Nepali and Hindi spoken.