Free Negative Gearing Calculator (2026-27)
This negative gearing calculator estimates the tax you save when a rental property makes a loss, and what the property really costs you each week after tax.
Negative gearing calculator: tax saving by salary
| Salary | Tax saving | Cash flow after tax | Cost per week |
|---|---|---|---|
| $70,000 | $5,142.50 | -$6,358 | $122.26 |
| $110,000 | $4,960.00 | -$6,540 | $125.77 |
| $150,000 | $6,010.00 | -$5,490 | $105.58 |
| $200,000 | $6,845.00 | -$4,655 | $89.52 |
Negative gearing changes from 1 July 2027
The negative gearing reform is law (Treasury Laws Amendment (Tax Reform No. 1) Act 2026). From 1 July 2027, negative gearing for residential property is limited to new builds. If you buy an established home after 7:30pm AEST on 12 May 2026, its losses can be deducted from wages up to 30 June 2027, but from then on only against residential property income, with unused losses carried forward. Properties held before the announcement are not affected.
Frequently asked questions
How does the negative gearing calculator work?
It adds up your rent and deductible costs (interest, other costs and depreciation). If costs are higher, the rental loss is deducted from your salary and the calculator works out the tax saved at the 2026-27 rates, including the Medicare levy.
Is negative gearing changing?
Yes. From 1 July 2027, losses on established residential property can only be deducted against residential property income, and unused losses carry forward. Properties held at 7:30pm AEST on 12 May 2026 are exempt, and new builds can still be negatively geared.
Does negative gearing make a property profitable?
No. Negative gearing only reduces the after-tax cost of a loss. The investment relies on the property growing in value enough to cover the yearly losses.