PAYG withholding estimator

What the result means

PAYG is the tax an employer withholds using ATO formulas, not the annual assessment divided by 12. Scale 2 applies when the employee claims the tax-free threshold.

How it is calculated

x = whole dollars of weekly equivalent + 0.99. y = ax − b, rounded to the nearest dollar

• Scale 2: Resident claiming the tax-free threshold.
• a, b: Published 2026–27 coefficients.

Monthly pay is converted with × 3/13 after the 33-cent rule. Fortnightly withholding is weekly y × 2.

Worked example

$132,000 a year, monthly

Resident, tax-free threshold claimed.

Monthly gross

$11,000

Weekly x

$2,538.99

Withheld

$2,734

Take-home

$8,266

That matches a typical payslip calculator. Annual tax assessed can differ by a few dollars.

Rounding is required by the ATO, not by us

The schedule converts pay to a weekly equivalent, applies y = ax − b, and rounds withholding to the nearest dollar. Gross salary is not rounded.

HELP, extra jobs, no tax-free threshold and Medicare levy variations use other scales and are not included.

Questions