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Negative gearing · FY 2026-27· ATO aligned

Negative gearing on a $100,000 income

On a $100,000 salary, a $10,000 rental loss saves you about $3,200 in tax. Here is the saving at other loss amounts, using current ATO FY 2026-27 rates.

Reviewed by the Vestly team
Updated July 2026Methodology
Annual rental lossTax savedNet cost after tax
$5,000$1,600$3,400
$10,000$3,200$6,800
$15,000$4,800$10,200
$20,000$6,400$13,600

Your marginal rate is 30% (30% bracket ($45,001 - $135,000)), or 32% with the Medicare Levy. Every $1 you deduct saves you 32c in tax at your marginal rate. The loss only reduces your tax, it does not erase it - a $10,000 loss still costs about $6,800 out of pocket.

2026 Budget update:From 1 July 2027 the Government has proposed 'quarantining' negative gearing on established rental properties bought on or after 7:30pm 12 May 2026 - losses would only offset rental income, not your salary. Properties you owned before then are grandfathered and keep today's rules, which this calculator uses. Read the full 2026 property tax changes guide.

See your real number, not a sample.

Vestly works your negative gearing out from your actual rent, interest and depreciation, then keeps it current all year so nothing slips past June 30.

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Negative gearing at other incomes

$60,000 income$80,000 income$90,000 income$120,000 income$135,000 income$150,000 income$180,000 income$200,000 income

Common questions

How much does negative gearing save on a $100,000 income?
On a $100,000 salary your marginal rate is 30% (30% bracket ($45,001 - $135,000)). A $10,000 net rental loss reduces your tax by about $3,200 at ATO FY 2026-27 rates, because the loss is deducted from your taxable income. The saving scales with the loss: see the table above for $5,000 to $20,000.
Is negative gearing worth it at $100,000?
Negative gearing reduces the cost of a loss-making property, it does not turn it into a profit. At $100,000 you get back roughly 32c of every $1 you lose, so a $10,000 loss still costs you about $6,800 out of pocket after the tax saving. It can make sense if you expect capital growth to outweigh that holding cost, but that is a decision to model property by property.
Does a higher income mean a bigger negative gearing benefit?
Yes. The higher your marginal tax rate, the more each deducted dollar saves you. Every $1 you deduct saves you 32c in tax at your marginal rate. A top-bracket investor saves 47c per $1; a lower-bracket investor saves less. That is why the same rental loss is worth more to a higher earner.
Is this the actual amount I will get back?
It is an estimate using your salary and a sample rental loss against the published ATO FY 2026-27 brackets, Medicare Levy and LITO. Your real figure depends on your actual rent, interest, depreciation and other deductions across the full year. Vestly calculates it live from your real numbers, and a registered tax agent confirms it at lodgement.