Free · 2025–26 tax year

Australia Take-Home Pay Calculator
2025–26 Tax Year

See exactly what you keep after ATO income tax, Medicare levy, HECS-HELP repayments, and super salary sacrifice.

✓ Free · No signup 2025–26 ATO rates LITO included HECS-HELP included
Your Salary Details
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Enter your gross salary before any deductions
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Extra % on top of employer 11.5%
Repayments start at $54,435 income (2024–25 threshold)
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Australian Income Tax Rates 2025–26

Australia uses a progressive income tax system — different portions of your income are taxed at different rates. Everyone who is a resident can earn up to $18,200 tax-free (the tax-free threshold). Above that, rates increase from 19% through to 45% for very high earners.

Taxable IncomeTax RateTax on this Band
$0 – $18,2000%Nil
$18,201 – $45,00019%19c for each $1 over $18,200
$45,001 – $120,00032.5%$5,092 + 32.5c for each $1 over $45,000
$120,001 – $180,00037%$29,467 + 37c for each $1 over $120,000
$180,001+45%$51,667 + 45c for each $1 over $180,000

Medicare Levy

The Medicare levy is an additional 2% of your taxable income, funding Australia's universal healthcare (Medicare). If you earn below $26,000, you may be exempt. Earners between $26,000 and $32,500 pay a reduced levy. Most working Australians pay the full 2%.

Low Income Tax Offset (LITO)

The LITO reduces your tax by up to $700 if you earn $37,500 or less. The offset then phases out: at $45,000 it reduces to $325, and completely phases out at $66,667. The ATO applies this automatically — no action needed.

HECS-HELP Repayments

If you have a student debt from university or TAFE, you start repaying it through your tax when your repayment income exceeds $54,435. Repayment rates range from 1% to 10% depending on your income — the ATO collects this alongside your income tax.

Superannuation — Employer Contributions

Your employer must pay 11.5% of your ordinary time earnings into your super fund (2025–26 rate), on top of your salary. This is not deducted from your take-home pay — it is an additional cost paid by your employer. You can also make voluntary salary sacrifice contributions to reduce your taxable income.

How to Maximise Your Take-Home Pay in Australia

  • Super salary sacrifice — pre-tax contributions reduce your taxable income, saving you income tax at your marginal rate. Concessional contributions inside super are taxed at 15% — much lower than 32.5%+ for most workers.
  • Claim the tax-free threshold — make sure you've ticked the tax-free threshold box on your Tax File Number Declaration for your main job. If not, your employer will withhold too much tax.
  • HECS voluntary repayments — making voluntary HECS repayments of $500+ earns a 10% bonus discount. If you have the cash, it's an effective 10% return with no risk.
  • Work-related deductions — uniforms, tools, home office, professional memberships and training all reduce your taxable income. Keep receipts and claim at tax time.
  • Private health insurance — if you earn over $93,000 (singles) or $186,000 (couples), private hospital cover avoids the Medicare Levy Surcharge (an extra 1–1.5% tax).

2025–26 Key Thresholds

$18,200 — Tax-free threshold
$45,000 — 32.5% tax rate begins
$120,000 — 37% tax rate begins
$180,000 — 45% tax rate begins
Other thresholds:
LITO max $700 ≤ $37,500 · phases out at $66,667
Medicare levy exemption below ~$26,000
HECS repayments start at $54,435
Super SGC: 11.5% (employer-paid)

Frequently Asked Questions

What is the tax-free threshold?
The tax-free threshold is $18,200. As an Australian resident, you can earn up to this amount each financial year without paying any income tax. You must claim the threshold on your Tax File Number Declaration with your employer — if you don't, too much tax will be withheld.
What is the Medicare levy?
The Medicare levy is 2% of your taxable income and helps fund Australia's public health system. Most employed Australians pay the full 2%. If you earn below $26,000 you may be exempt or pay a reduced amount. High earners without private health insurance may also pay the Medicare Levy Surcharge (1–1.5% extra).
How are HECS-HELP repayments calculated?
HECS repayments are based on your repayment income (roughly your taxable income). The repayment rate starts at 1% once you earn $54,435 and increases progressively up to 10% for incomes above $151,201. The ATO automatically collects the repayment as part of your tax — you don't make separate payments unless you choose to.
Does the calculator include the Stage 3 tax cuts?
Yes. This calculator uses the 2025–26 ATO tax tables, which include the revised Stage 3 tax cuts that took effect on 1 July 2024. The cuts lowered the 19% rate threshold and changed the 32.5% and 37% bands, resulting in most Australians keeping more of their income.
Why is my actual pay different from the estimate?
This calculator uses standard ATO rates and assumes you are an Australian tax resident who has claimed the tax-free threshold. Your actual payslip may differ if you have investment income, rental income, or other deductions that affect your tax code. It also assumes PAYG withholding — contractors and the self-employed calculate tax differently.