Australian salary / take-home pay calculator

What the result means

Take-home pay is what remains of a resident salary after tax. Weekly, fortnightly and monthly figures use ATO PAYG withholding with the tax-free threshold claimed — the same method as a typical payslip. The annual figure uses year-end income tax and the Medicare levy. Employer superannuation is shown separately because it is usually paid on top of salary, not deducted from it.

How it is calculated

Period take-home = gross for the pay − PAYG withheld. Annual take-home = gross − max(income tax − LITO, 0) − Medicare levy

• PAYG withheld: ATO Schedule 1 Scale 2 (tax-free threshold claimed): convert to weekly earnings x, then y = ax − b, rounded to the nearest dollar.
• Gross salary: Your pay before tax, annualised using 52 / 26 / 12.
• Taxable income: Gross salary minus the $1,000 standard work deduction when that option is on.
• Income tax: Resident marginal rates for 2026–27, including the $18,200 tax-free threshold.
• LITO: Low Income Tax Offset up to $700, tapering to nil at $66,667. It cannot create a refund.
• Medicare levy: Usually 2% of taxable income, with a 10c-in-the-dollar shade-in for low incomes.
• Employer super: 12% of salary, capped at the SG maximum contribution base.

Period take-home uses ATO PAYG Scale 2: convert the pay to weekly earnings x (whole dollars plus 99 cents), apply y = ax − b, and round y to the nearest dollar. Annual take-home uses resident brackets on taxable income. LITO is subtracted from income tax only, not from the Medicare levy. The levy uses a shade-in: below the lower threshold you pay nothing; between the thresholds you pay 10% of the excess; above the upper threshold you pay 2% of taxable income.

Worked example

A $95,000 resident salary in 2026–27

Alex earns $95,000 a year as an Australian resident employee, claims the tax-free threshold, and uses the $1,000 standard work-related deduction.

Taxable income

$94,000

Income tax on $94,000

$4,020 + 30% × $49,000 = $18,720

LITO

$0, because income is above $66,667

Medicare levy

2% × $94,000 = $1,880

Take-home

$95,000 − $18,720 − $1,880 = $74,400

Alex keeps about $74,400 a year after lodging. Without the standard deduction, annual take-home is $74,080 and PAYG monthly take-home is $6,170.67, plus employer super of 12% of $95,000 ($11,400) unless the maximum contribution base applies.

Payslip withholding and year-end tax

Employers withhold tax using ATO PAYG Schedule 1 Scale 2 when you claim the tax-free threshold. That formula converts the pay to a weekly equivalent, applies published coefficients, and rounds each pay. Weekly, fortnightly and monthly take-home here use that method, so they should match a straightforward resident payslip calculator.

The annual take-home uses resident income tax brackets, LITO and the Medicare levy for the full year. Because PAYG rounds each pay, withholding over 12 months can differ from tax assessed at lodgement — usually by a few dollars, shown as an estimated tax return when PAYG is higher.

Weekly and fortnightly amounts use 52 and 26 periods. Monthly amounts use calendar months (annual ÷ 12).

What is included — and what is not

The 2026-27 resident brackets, Low Income Tax Offset, Medicare levy with the published single low-income shade-in, and the standard work-related deduction are included when you leave that option on. Employer super is calculated at 12% of salary up to the maximum contribution base of $270,830.

The estimate assumes you are an Australian resident for tax purposes, claim the full tax-free threshold, have no HELP/HECS, student start-up or other compulsory repayments, no Medicare levy surcharge, no private health rebate, and no extra income such as a second job or investments. It does not apply SAPTO, offsets other than LITO, salary sacrifice, or overtime.

Questions