Salary Sacrifice at $120k: How Much Tax Could You Save?

At $120k you're in the 30% marginal bracket, so every dollar salary sacrificed into super is taxed at 15% inside the fund instead of 30% in your hands — a saving of 15 cents per dollar. The 2026-27 concessional super cap is $32,500 (including the 12% employer contribution), so there's a ceiling on how much you can redirect before excess contributions are taxed at your marginal rate.

The comparison below models your $120k salary with and without a $15k salary sacrifice. You'll see the impact on take-home pay, total super contributions, and effective tax rate. For many employees in the 30% marginal bracket, the reduced cash flow is more than offset by accelerated retirement savings and meaningful tax savings — especially if you're not relying on every pre-tax dollar for day-to-day expenses.