Negative Gearing Calculator
Calculate your negative gearing tax benefit on an Australian investment property. Enter your income, rental details, loan, and expenses to see how much the ATO effectively subsidises your holding costs.
How Does Negative Gearing Work in Australia?
Negative gearing occurs when the total costs of owning an investment property — including loan interest, council rates, insurance, management fees, maintenance, and depreciation — exceed the rental income it generates. The resulting loss can be offset against your other taxable income (such as your salary), reducing the amount of tax you pay. In effect, the ATO subsidises part of your holding cost through a larger tax refund.
For example, if your property generates a $10,000 annual loss and your marginal tax rate is 30%, you receive a $3,000 tax benefit — reducing your real out-of-pocket cost to $7,000 per year. The higher your marginal rate, the greater the tax benefit.
2025–2026 Australian Tax Rates
Your marginal tax rate determines how much of your property loss the government effectively refunds. The current individual income tax rates for the 2025–2026 financial year are:
| Taxable Income | Marginal Rate |
|---|---|
| $0 – $18,200 | 0% |
| $18,201 – $45,000 | 16% |
| $45,001 – $135,000 | 30% |
| $135,001 – $190,000 | 37% |
| $190,001+ | 45% |
Note: These rates do not include the Medicare levy of 2%. Negative gearing has been a topic of political debate in Australia but remains fully available for the 2025–2026 financial year.
Disclaimer: This calculator provides estimates only and does not constitute financial or tax advice. Consult a qualified tax professional for advice specific to your situation.
Track Your Real Tax Position with PropBoss
Stop estimating with calculators. PropBoss automatically tracks your rental income, expenses, depreciation, and tax position across your entire portfolio — giving you real-time negative gearing insights, not guesses.