Australian Property Tax Calculator

Discover your real after-tax property costs and see how negative gearing saves you thousands each year.

Free calculator for Australian investors. No email required. Instant results.

Property Details

Enter the purchase price

Deposit

$100,000

Loan Amount

$400,000

Current mortgage rate


Income

(5.0% gross yield)


Annual Expenses

%

≈ $2,000/year

Typical: 1-2% of property value


Tax Information

Used to calculate your tax benefit from negative gearing

Based on division 43 & 40 depreciation schedules

Note: This calculator provides estimates. For accurate tax planning, consult with a qualified accountant or tax advisor.

Important Disclaimer

This calculator provides estimates only and should not be relied upon for financial or tax advice.

  • • Tax laws change regularly—consult with a qualified tax professional
  • • Depreciation estimates are based on typical schedules, not your property
  • • Loan interest and expense deductibility depends on your specific circumstances
  • • Personal use vs investment property classification matters for tax
  • • Individual tax outcomes vary based on your complete financial picture

Before making investment decisions, consult with an accountant or tax advisor.

How the Calculator Works

Enter Property Details

Provide your property price, loan details, and annual rental income.

Automatic Calculations

We calculate annual costs, negative gearing loss, and tax benefits instantly.

See Your Benefits

View tax savings at your income bracket and effective property costs.

Australia-Specific Features

  • Negative Gearing: Shows how property losses reduce your taxable income
  • Tax Brackets: Calculates real tax savings at your income level (19%, 32.5%, 37%, 45%)
  • Depreciation: Includes building depreciation and plant & equipment deductions
  • Loan to Value: Drag to adjust LVR (50-95%) and see impact
  • Cost Breakdown: Visual breakdown of all property expenses

Calculator FAQs

What is negative gearing?

Negative gearing occurs when a property's annual costs (interest, rates, insurance, maintenance) exceed the rental income. This creates a tax loss you can deduct against your salary or other income, reducing your overall tax bill.

Are these tax benefits guaranteed?

No. Tax benefits depend on many factors: whether the property is a genuine investment, property classification, mixed-use rules, and individual tax circumstances. Always consult a qualified tax professional before relying on these estimates.

How is depreciation calculated?

Building depreciation is typically 2.5% per year. Plant & equipment (carpets, appliances) depreciate faster (10%+). You'll need a professional depreciation schedule to claim exact amounts. This calculator lets you input your estimated or actual depreciation amount.

What's the LVR and why does it matter?

LVR (Loan to Value Ratio) is the loan amount as a percentage of property price. It affects your interest costs—higher LVR means higher interest deductions. Most lenders offer 80-90% LVR. A larger deposit (lower LVR) reduces interest but increases your upfront cash requirement.

How often should I update my calculations?

Recalculate when: interest rates change, you refinance, property value changes, rental income increases/decreases, or your personal income changes. Tax laws also change annually, so check with your accountant each financial year.

Ready to optimize your property investment strategy?

Our property investment advisors can help you structure investments for tax efficiency and long-term wealth building.

Or call 02 9099 5636