How your take-home pay is worked out (2025-26)
In Australia, your take-home pay is your salary minus income tax and the Medicare levy. Unlike the UK or Germany, there is no separate social-insurance deduction — Medicare and welfare are funded through the tax system. If you have a study loan, a HECS-HELP repayment also comes out. This calculator uses the official ATO rates for the 2025-26 income year (1 July 2025 – 30 June 2026).
Resident income tax rates
| Taxable income | 2025–26 rate |
|---|---|
| $0 – $18,200 | Nil (tax-free threshold) |
| $18,201 – $45,000 | 16% |
| $45,001 – $135,000 | 30% |
| $135,001 – $190,000 | 37% |
| $190,001 + | 45% |
Medicare levy
Most taxpayers pay a 2% Medicare levy on their taxable income. Low-income earners pay a reduced levy: nothing below $28,011 (single), phasing in to the full 2% by $35,013.
Low Income Tax Offset (LITO)
If you earn under $66,667, the LITO reduces your tax by up to $700. This calculator applies it automatically, so lower incomes are accurate too.
HECS-HELP (new marginal system)
From 2025-26, study-loan repayments are marginal — you only repay on income above $67,000, not on your whole income as before. This removes the old "cliff" where crossing a threshold cost you hundreds at once. Tick the box above if you have a HELP debt.
Superannuation
Your employer pays 12% super on top of your salary (from 1 July 2025). It is not deducted from your take-home — the calculator shows it separately for reference.
Example: $80,000 salary (2025-26, no HELP)
On $80,000, income tax is $14,788 ($4,288 + 30% on the $35,000 above $45,000) and the Medicare levy is $1,600 (2%). That leaves a take-home of $63,612 a year — about $5,301 a month or $1,223 a week. Your employer also pays $9,600 super on top.
What this calculator does not include
- The Medicare Levy Surcharge (for higher earners without private hospital cover), salary sacrifice, and work-related deductions.
- Other offsets and the tax treatment of reportable fringe benefits or investment income.
- It treats your salary as your taxable income (before deductions) — a standard simplification for a pay estimate.
Frequently asked questions
Is super taken out of my pay?
No. Superannuation guarantee (12% in 2025-26) is paid by your employer on top of your salary, not deducted from it. We show it separately so you can see the full package.
Why is there no National Insurance like the UK?
Australia doesn't have a separate employee social-insurance contribution. Health and welfare are funded through income tax and the 2% Medicare levy, which this calculator includes.
How does the new HECS system work?
From 2025-26, repayments are calculated only on the income above $67,000 at marginal rates (from 15%), rather than a flat percentage of your entire income. It's fairer and smoother.
When is the income year?
The Australian income year runs 1 July to 30 June. 2025-26 ends on 30 June 2026.
More Australia calculators
This calculator provides estimates for the 2025-26 income year based on published ATO rates and is for general information only — it is not financial or tax advice. It treats salary as taxable income and excludes the Medicare Levy Surcharge, salary sacrifice, deductions and some offsets. HECS-HELP figures use the new marginal system and are an estimate. For your exact position, use the ATO calculators or the government MoneySmart tool, or speak to a registered tax agent. Source: ATO (tax rates, Medicare levy, study loan repayments, super guarantee).