How your pay is taxed
| Taxable income | Tax rate (2026–27) |
|---|---|
| $0 – $18,200 | Nil |
| $18,201 – $45,000 | 15c per $1 over $18,200 |
| $45,001 – $135,000 | 30c per $1 over $45,000 |
| $135,001 – $190,000 | 37c per $1 over $135,000 |
| $190,001 and over | 45c per $1 over $190,000 |
Plus the Medicare levy of 2%, minus the low income tax offset (LITO) of up to $700 if you qualify. Your employer also pays 12% super guarantee on top of your salary (up to the maximum base).
Worked example: $100,000 salary
Income tax is $20,520, the Medicare levy is $2,000, so take-home pay is $77,480 a year — exactly $1,490 a week. Tick the HECS-HELP box and a further $4,570.80 comes out under the new marginal repayment system, leaving $72,909.20. Meanwhile your employer adds $12,000 of super on top — it never touches your payslip.
Frequently asked questions
How is tax calculated on my salary in Australia?
In bands: nothing on the first $18,200, then 15% to $45,000, 30% to $135,000, 37% to $190,000 and 45% above that. Add the 2% Medicare levy, subtract any low income tax offset (LITO), and you have your PAYG withholding.
Does super come out of my pay?
No — the 12% super guarantee is paid by your employer on top of your salary (unless your contract says your package is inclusive of super). It only comes out of your pay if you choose to salary sacrifice extra.
What is Payday Super?
From 1 July 2026 employers must pay super on payday — each pay day, not quarterly — and the fund must receive it within 7 business days. Same 12%, faster arrival, so your balance compounds sooner.
Why is my first payslip different to this estimate?
Employers withhold per pay period using ATO tables; if your income varies (overtime, bonuses, unpaid leave) the annual result shifts. This calculator annualises for a close full-year estimate.
Do I pay the Medicare levy surcharge?
Only if you earn over $105,000 (single) or $210,000 (family) and don't hold appropriate private hospital cover — then it's an extra 1–1.5%. It's not in the standard estimate; the tax calculator page explains the tiers.
Rates checked against official sources on 1 November 2026: ATO tax rates — Australian residents and ATO study and training loan repayment thresholds. See how we calculate (AU) for the full method.