Finance calculators

PAYG Calculator

Updated Sep 1, 2026 By Jehan Wadia
Rate Formulas
Income Details
Enter your gross pay before tax.
Enter your desired annual take-home to back-calculate the gross. Fills the gross field above.
Additional Income Sources
Tax Scenario & Worker Type
Active Year
2025–26
Salary Packaging
Superannuation

PAYG Tax Bands (resident scale)
BandFrom ($)Rate (%)
Medicare Levy Configuration
Medicare Levy Surcharge Bands
From ($)MLS Rate (%)
Auto-Detection Thresholds ($ upper bound)
Workload Adjustments
Net Take-Home (Annually)
$0
Take-Home + Super (Annual)
$0
Take-Home % of Gross
0%
Take-Home Per Week
$0
Effective Tax Rate
0%
Marginal Tax Rate
0%
Pay Breakdown by Period
Step-by-Step Solution (Annual, Standard scenario)
Income Breakdown (Proportional)
Standard
Income Components
Component Comparison
Effective Tax Rate vs Income
Calculation History (this session)
# Annual Gross Annual Take-Home Eff. Tax Rate Year Residency STSL Action

Introduction

This free Australian PAYG tax calculator helps you work out how much tax you will pay and how much take-home pay you will keep. Enter your gross income, pick your pay frequency, and choose your financial year from 2022–23 to 2026–27. The calculator applies the correct tax brackets, Medicare levy, HECS/HELP repayments, and superannuation rates for each year.

You can also use the reverse calculator to find the gross salary you need to reach a specific take-home amount. It supports salary packaging, bonuses, multiple income sources, and non-resident tax rates. Results update instantly and show a full breakdown by hour, day, week, fortnight, month, and year, along with charts and a step-by-step explanation of how your tax is calculated.

How to Use Our PAYG Tax Calculator

Enter your income details and tax settings below. The calculator will show your take-home pay, tax owed, Medicare levy, superannuation, and HECS repayments across every pay period.

Primary Income (Gross): Type your gross pay before any tax is taken out. This is the main income you earn from your job.

Pay Frequency: Pick how often you get paid. Choose from hourly, daily, weekly, fortnightly, monthly, or annually. The calculator converts everything to a yearly figure.

Hours Per Week / Days Per Week: If you selected hourly or daily pay, enter how many hours or days you work each week. This helps calculate your annual income.

Auto-Detect Frequency: Leave this on and the calculator will guess your pay frequency based on the number you entered. You can accept or dismiss the suggestion.

Reverse Net Pay: If you know how much take-home pay you want per year, type it here. The calculator will work backwards to find the gross income you need to earn.

Additional Income Sources: Click "Add Income Source" to include extra income from a second job or side work. Enter the amount and how often you receive it.

Include a Bonus: Turn this on if you receive a bonus. Enter the bonus amount and choose whether it is paid weekly, fortnightly, monthly, yearly, or as a percent of your salary.

Financial Year: Select the tax year you want to calculate for. Each year has different tax rates, thresholds, and super guarantee percentages. The default is the current financial year.

Non-Resident: Turn this on if you are not an Australian resident for tax purposes. Non-residents pay different tax rates and do not get the tax-free threshold.

Tax File Number (TFN) Supplied: Keep this on if you have given your TFN to your employer. If you turn it off, tax is withheld at the highest rate.

Claim Tax-Free Threshold: Leave this on if you want to claim the tax-free threshold from this employer. Most people only claim it from one job.

Working Holiday Maker: Turn this on if you are a backpacker on a working holiday visa. This option only appears for non-residents.

STSL / HECS-HELP Debt: Turn this on if you have a study loan such as HECS-HELP, VET Student Loan, or other STSL debt. The calculator will add compulsory repayments to your deductions.

Medicare Levy Exemption: Choose "Full" if you are fully exempt from the Medicare levy, or "Half" if you are partially exempt. Most Australian residents pay the full levy.

Apply MLS: Turn this on if you do not have private hospital cover and your income is above the MLS threshold. The Medicare Levy Surcharge will be added to your tax.

Salary Packaging: Turn this on if your employer offers salary packaging. Enter the annual pre-tax amount you package. The calculator will show your tax saving compared to the standard scenario.

Super Guarantee (SG) Rate: Enter your employer's superannuation rate. The default matches the current SG rate for the selected financial year.

Salary Includes Super: Turn this on if your total pay package already includes super. The calculator will separate the super portion before calculating tax.

Headline Frequency: Choose which pay period to display in the main result at the top: hourly, weekly, fortnightly, monthly, or annually.

Highlight Period: Pick a column to highlight in the pay breakdown table so you can quickly spot the period that matters most to you.

Advanced Settings: Expand this panel to edit tax brackets, Medicare thresholds, MLS bands, HECS repayment rates, FTE adjustments, pay rise percentages, and decimal precision. Use the historical rates selector to load rates from a different year.

What Is PAYG Tax in Australia?

PAYG stands for Pay As You Go. It is the system Australia uses to collect income tax from workers throughout the year. Instead of paying one big tax bill at the end of the year, your employer takes tax out of each pay before you receive it. This money goes straight to the Australian Taxation Office (ATO). This is similar to the PAYE system used in other countries such as the United Kingdom and New Zealand.

How Australian Income Tax Works

Australia uses a progressive tax system. This means the more you earn, the higher the tax rate on each extra dollar. Your income is split into sections called tax brackets. Each bracket has its own rate. For example, in the 2025–26 financial year, the first $18,200 you earn is tax-free. Income above that is taxed at rates from 16% up to 45%, depending on how much you make.

What Gets Taken Out of Your Pay

Your gross pay is the total amount you earn before anything is removed. Several things can be taken out:

  • PAYG income tax: the main income tax on your earnings.
  • Medicare levy: a 2% charge that helps fund Australia's public health system.
  • Medicare levy surcharge (MLS): an extra charge for higher earners who do not have private hospital cover.
  • HECS-HELP or STSL repayments: if you have a student loan from university, a portion is taken once your income reaches a certain level.

After all of these are removed, the amount left is your net pay, also called your take-home pay.

Superannuation

On top of your salary, your employer must pay superannuation (super) into a retirement fund for you. In the 2025–26 financial year, the super guarantee rate is 12% of your ordinary earnings. Super is not taken from your pay. It is an extra amount your employer pays on your behalf.

Tax-Free Threshold and Offsets

If you are an Australian resident for tax purposes, you can claim the tax-free threshold. This means you pay no tax on the first $18,200 you earn each year. You may also receive the Low Income Tax Offset (LITO), which lowers your tax if you earn under a certain amount. Non-residents do not get the tax-free threshold or LITO.

Salary Packaging

Salary packaging lets you pay for certain items or expenses from your pre-tax salary. This lowers your taxable income, which can reduce the amount of tax you pay. It is common in industries like healthcare and not-for-profit work.

Formulas used

PAYG Income Tax (progressive brackets)
\text{PAYG}_{\text{before}} = \sum_{i} \left( \min(\text{Taxable},\, T_{i+1}) - T_i \right) \times r_i
Low Income Tax Offset (LITO)
\text{LITO} = \begin{cases} 700 & \text{if } T \le 37{,}500 \\ 700 - (T - 37{,}500) \times 0.05 & \text{if } T \le 45{,}000 \\ 325 - (T - 45{,}000) \times 0.015 & \text{if } T \le 66{,}667 \\ 0 & \text{otherwise} \end{cases}
Medicare Levy
\text{Medicare} = \begin{cases} 0 & \text{if } I \le L \\ (I - L) \times r_{\text{phase}} & \text{if } L < I \le U \\ I \times r_{\text{levy}} & \text{if } I > U \end{cases}
Super-inclusive taxable income
\text{Taxable} = \frac{\text{Gross}}{1 + r_{SG}}, \quad \text{Super} = \text{Gross} - \text{Taxable}
Net take-home pay
\text{Net} = \text{Gross} - \text{PAYG} - \text{Medicare} - \text{MLS} - \text{HECS}
Effective tax rate
r_{\text{eff}} = \frac{\text{PAYG} + \text{Medicare} + \text{MLS}}{\text{Gross}} \times 100\%

Frequently asked questions

What is the tax-free threshold for 2025–26?

The tax-free threshold for the 2025–26 financial year is $18,200. If you are an Australian resident for tax purposes and you claim this threshold, you pay no income tax on the first $18,200 you earn. Non-residents do not get this threshold.

What are the PAYG tax rates for 2025–26?

For Australian residents in 2025–26, the tax rates are:

  • $0 – $18,200: 0%
  • $18,201 – $45,000: 16%
  • $45,001 – $135,000: 30%
  • $135,001 – $190,000: 37%
  • $190,001 and above: 45%

How is the Medicare levy calculated?

The Medicare levy is 2% of your taxable income for most Australian residents. If your income is below $27,805 (2025–26), you pay no levy. Between $27,805 and $34,756, the levy phases in at 10% of the amount above the lower threshold. Above $34,756, you pay the full 2%. Non-residents and working holiday makers do not pay the Medicare levy.

What is the Medicare Levy Surcharge and when does it apply?

The Medicare Levy Surcharge (MLS) is an extra charge on top of the standard Medicare levy. It applies if your income is above a certain threshold and you do not have private hospital cover. For 2025–26, the MLS starts at incomes over $101,000 and ranges from 1% to 1.5% depending on how much you earn.

What is the super guarantee rate for 2025–26?

The super guarantee (SG) rate for 2025–26 is 12%. This is the minimum percentage your employer must pay into your superannuation fund on top of your salary. You can change this rate in the calculator if your employer pays a different amount.

What does salary includes super mean?

If your employment contract says your pay package includes super, it means super comes out of your total package, not on top of it. For example, a $100,000 package including 12% super means your base salary is about $89,286 and super is about $10,714. Turn this option on and the calculator will split the amounts correctly before calculating tax.

Can I calculate tax for multiple income sources?

Yes. Click Add Income Source to include extra income from a second job, freelance work, or other sources. Enter the amount and how often you receive it. All sources are added together to find your total annual income, which is then taxed as one combined amount.

What happens if I do not provide my Tax File Number?

If you turn off the TFN Supplied toggle, the calculator withholds tax at the highest marginal rate, which is 47% for residents and 45% for non-residents. This matches what employers must do when a worker has not given them a TFN. Always provide your TFN to avoid losing a large portion of your pay to tax.

What is the Low Income Tax Offset and how much is it?

The Low Income Tax Offset (LITO) is a tax reduction for people who earn less. It is worth up to $700 for taxable incomes of $37,500 or less. It reduces gradually as your income rises and cuts out completely at about $66,667. Only Australian residents can receive LITO. The calculator applies it automatically and shows it in the results.

How does salary packaging reduce my tax?

Salary packaging lets you pay for certain items from your pre-tax salary. This lowers your taxable income, which means you pay less income tax. The calculator compares your tax with and without packaging and shows the annual tax saving. The default packaged amount is $15,899, which is the standard FBT-exempt cap for eligible employers.

What is the difference between effective tax rate and marginal tax rate?

Your effective tax rate is the average percentage of your total income that goes to tax. Your marginal tax rate is the rate you pay on your last dollar of income. It is the highest bracket your income falls into. For example, you might have a marginal rate of 30% but an effective rate of only 20% because lower portions of your income are taxed at lower rates.

Are non-resident tax rates different from resident rates?

Yes. Non-residents do not get the tax-free threshold, so they pay tax from the first dollar earned. Their rates also differ. For 2025–26, non-residents pay 30% on income up to $135,000, 37% up to $190,000, and 45% above that. Non-residents also do not pay the Medicare levy or receive LITO.

What is a working holiday maker and how are they taxed?

A working holiday maker (WHM) is someone in Australia on a visa subclass 417 or 462, often called a backpacker visa. WHMs pay a flat 15% tax on the first $45,000 they earn. Income above that is taxed at standard non-resident rates. The WHM option only appears in the calculator when you select non-resident.

What does the FTE adjustment do?

FTE stands for Full-Time Equivalent. If you work part-time, you can set your FTE to match your work fraction, for example, 0.6 for three days a week out of five. The calculator multiplies your entered income by this fraction to estimate your part-time earnings before calculating tax.

Is the bonus taxed separately from my regular pay?

In this calculator, your bonus is added to your gross income and the combined total is taxed together. This gives you the correct annual tax result. In real life, your employer may withhold tax on a bonus at a higher rate in the pay period you receive it, but the total tax for the year is the same.

What changed in the HECS-HELP system from 2025–26?

From 2025–26, HECS-HELP repayments switched to a marginal repayment system. Under the old system, once your income passed a threshold, the repayment rate applied to your entire income. Under the new system, repayment rates only apply to the income above each threshold, similar to how tax brackets work. This means lower repayments for most people near the thresholds.

What is the difference between gross pay and net pay?

Gross pay is the total amount you earn before any tax or deductions are taken out. Net pay is the amount you actually receive in your bank account after income tax, Medicare levy, and any HECS repayments are removed. Net pay is also called take-home pay.

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