The $100,000 Threshold
The $100,000 mark isn't a bracket boundary, but it's a critical threshold. HELP repayment rates step up significantly around this level. The low and middle income tax offset (LMITO) has ended, but the low-income tax offset (LITO) phases out completely by $66,667. At $100,000+, you're also more likely to face the Medicare levy surcharge if you don't hold private health insurance.
Jump to: What happens at this threshold, Salary comparison, Tax tips, FAQ.
What happens at the $100,000 threshold?
The table below shows the exact tax change as income crosses $100,000. Each row uses Australian 2025-26 resident rates including Medicare levy.
| Income | Income Tax | Medicare Levy | Total Tax | Take-Home | Effective Rate | Marginal Rate |
|---|---|---|---|---|---|---|
| $99,999below | $20,788 | $2,000 | $22,788 | $77,211 | 22.8% | 30.0% |
| $100,000 threshold | $20,788 | $2,000 | $22,788 | $77,212 | 22.8% | 30.0% |
| $101,000+$1,000 | $21,088 | $2,020 | $23,108 | $77,892 | 22.9% | 30.0% |
Tax on the first $1,000 below $100,000: $320. Tax on the first $1,000 above $100,000: $320.
Salary comparison around $100,000
How take-home pay and effective tax rate change for salaries near this threshold (2025-26, Australian resident, no HELP debt or salary sacrifice).
| Salary | Income Tax | Medicare Levy | Take-Home | Effective Rate | Marginal Rate |
|---|---|---|---|---|---|
| $90,000 | $17,788 | $1,800 | $70,412 | 21.8% | 30.0% |
| $95,000 | $19,288 | $1,900 | $73,812 | 22.3% | 30.0% |
| $100,000 threshold | $20,788 | $2,000 | $77,212 | 22.8% | 30.0% |
| $105,000 | $22,288 | $2,100 | $80,612 | 23.2% | 30.0% |
| $110,000 | $23,788 | $2,200 | $84,012 | 23.6% | 30.0% |
Use the Income Tax Calculator to model your exact situation with deductions, HELP debt, or salary sacrifice.
Tax tips at this income level
Get private hospital cover to avoid the Medicare Levy Surcharge
Singles earning over $101,000 without private hospital cover pay a 1%–1.5% Medicare Levy Surcharge. At $100,000, that is up to $1,500 in additional tax. Basic hospital cover often costs less than the surcharge.
Maximise salary sacrifice to manage HELP repayments
HELP repayments are based on repayment income (taxable income plus reportable fringe benefits and total net investment losses). Salary sacrificing into super reduces your repayment income and can reduce your compulsory HELP repayment rate. Use calculator →
Consider voluntary HELP repayments
You can make voluntary HELP repayments at any time. While there is no longer a bonus for doing so, reducing your HELP balance sooner reduces the indexation that applies on 1 June each year.
Review salary packaging options
Salary packaging (if available through your employer) allows you to pay for certain items from pre-tax income, reducing your taxable income and potentially your HELP repayment rate.
Model your exact tax situation
The numbers above assume no deductions, HELP debt, or salary sacrifice. Use the calculators below for a personalised estimate.
See all 2025-26 tax bracket tables or compare brackets with the Marginal Tax Rates guide.