PAYG Withholding Calculator

Q: Why does my result say Scale 4 when I pick No TFN Provided?

Scale 4 is the ATO tax scale for workers who have not given their employer a Tax File Number (TFN). It applies the highest withholding rate — 47% for residents and 45% for non-residents. This rate covers income tax, Medicare, and all other components in one flat percentage. To avoid this high rate, give your employer a valid TFN or lodge a TFN declaration.

Q: Can I claim the tax-free threshold from more than one employer?

No. You can only claim the tax-free threshold from one employer at a time. If you have a second job, choose Tax-Free Threshold Not Claimed for that job. Claiming it from two employers at once means too little tax is withheld during the year, and you may owe money when you lodge your tax return.

Q: What is the difference between gross taxable earnings and gross pay?

Gross taxable earnings are the part of your pay that is subject to tax. Gross pay is your total pay, which includes gross taxable earnings plus any non-taxed allowances like tool or travel allowances. Tax is only calculated on the taxable portion, but the allowances are added back in when working out your net pay.

Q: Why is the Medicare Levy field greyed out?

The Medicare Levy field is disabled when it does not apply to your situation. This happens if you select Non-Resident , Working Holiday Maker , or No TFN Provided . Non-residents and Working Holiday Makers are not subject to the Medicare Levy. For No TFN, the top withholding rate already covers all tax components including Medicare.

Q: What does the annualised equivalent figure mean?

The annualised equivalent takes your gross earnings for one pay period and multiplies it by the number of pay periods in a year. For example, if you earn $2,500 per fortnight, the annualised amount is $2,500 × 26 = $65,000. The ATO uses this yearly figure to find the right tax bracket and work out how much tax to withhold each period.

Q: How do I know if I qualify for a Medicare Levy reduction or exemption?

You may qualify for a full exemption if you are a foreign resident for tax purposes or hold certain visas. A half exemption applies if you were entitled to Medicare for only part of the year. A low-income reduction applies if your annual income is below the Medicare Levy threshold. For 2025–26, the single threshold is $27,222. If you are unsure, check with the ATO or a tax agent.

Q: When do student loan repayments start being withheld?

Your employer starts withholding student loan repayments once your annualised income goes above the compulsory repayment threshold. For HELP, SSL, and TSL debts in 2025–26, the threshold is $54,435. If your income is below that amount, no repayment is withheld. The repayment rate increases as your income rises.

Q: What is the difference between HELP and SFSS debts?

HELP (Higher Education Loan Program) includes HECS-HELP, FEE-HELP, and SA-HELP debts for university study. It also covers SSL (Student Start-up Loan) and TSL (Trade Support Loan) debts. SFSS (Student Financial Supplement Scheme) was a separate loan program that closed in 2004. If you have both types, select Both HELP and SFSS Debts so both repayment rates are applied.

Q: What does the tax offset or approved variation field do?

This field lets you enter an annual dollar amount that reduces your total tax withheld each period. Common uses include an ATO-approved PAYG variation or an estimated tax offset. The calculator divides the annual amount by the number of pay periods and subtracts it from your withholding. Leave it at zero if you do not have an approved variation.

Q: Why is my net pay shown as negative?

A negative net pay means the total deductions — tax plus any student loan repayment — are more than your gross pay. This can happen if you have a very small gross amount combined with high withholding, such as when no TFN is provided. In practice, your employer would still withhold the required tax, and you may receive a refund when you lodge your tax return.

PAYG Withholding Calculator

Updated Jul 3, 2026 By Jehan Wadia

Pay Period	—
Gross Taxable Earnings	—
Non-Taxed Allowances	—
Gross Pay	—
Annualised Taxable Income	—
Income Tax Withheld (Base)	—
Medicare Levy	—
Tax Offset / Variation Applied	—
Total Tax Withheld	—
Effective Withholding Rate	—
Student Loan Repayment	—
Total Deductions	—
Net Pay	—

Pay Period

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Gross Taxable Earnings

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Non-Taxed Allowances

—

Gross Pay

—

Annualised Taxable Income

—

Income Tax Withheld (Base)

—

Medicare Levy

—

Tax Offset / Variation Applied

—

Total Tax Withheld

—

Effective Withholding Rate

—

Student Loan Repayment

—

Total Deductions

—

Net Pay

—

Introduction

PAYG stands for Pay As You Go. It is the tax your employer takes out of your pay each period and sends to the Australian Taxation Office (ATO) on your behalf. The amount withheld depends on how much you earn, how often you are paid, whether you claim the tax-free threshold, and your residency status.

This PAYG withholding calculator works out how much tax should be taken from your pay. Enter your gross earnings, choose your pay period, and select your tax settings. The calculator uses the official ATO tax scales from 2017–18 through to 2025–26 to estimate your income tax, Medicare levy, and any student loan repayments. It then shows your net take-home pay, a full breakdown of each deduction, and a step-by-step explanation of how the result was reached.

Use this tool to check your payslip, plan your budget, or understand how changes to your income affect your tax. If you need to work backwards from a net figure, try our Net to Gross Calculator, or see our PAYG Calculator for quarterly instalment estimates. Results are estimates only — for official figures, refer to the ATO website or speak with a registered tax agent.

How to Use Our PAYG Withholding Calculator

Enter your pay details and tax status below to find out how much tax your employer should withhold from your pay each period. The calculator will show your estimated tax withheld, net pay, effective tax rate, and a full step-by-step breakdown.

Financial Year: Pick the financial year that applies to your pay. Tax rates change each year, so make sure you choose the right one. Select an earlier year if you need to check back-pay or past amounts.

Pay Period: Choose how often you get paid — weekly, fortnightly, bi-fortnightly (4-weekly), monthly, or quarterly. This tells the calculator how to convert your pay into a yearly amount.

Gross Taxable Earnings: Type in your total taxable pay for one pay period, before any tax is taken out. Do not include non-taxed allowances here.

Non-Taxed Allowances: Enter any allowances that are not subject to tax, such as tool or travel allowances. These are added to your gross pay but do not affect how much tax is withheld.

Tax-Free Threshold / TFN Status: Select whether you have claimed the tax-free threshold on your TFN declaration. If you have not given your employer a Tax File Number, choose "No TFN Provided" — this applies the highest withholding rate.

Residency Status: Choose whether you are an Australian resident, a non-resident, or a Working Holiday Maker. Non-residents and Working Holiday Makers pay different tax rates and do not pay the Medicare Levy.

Medicare Levy: Pick your Medicare Levy status. Most Australian residents pay the standard 2% levy. Choose an exemption or reduction if you qualify. This field is turned off for non-residents, Working Holiday Makers, and those without a TFN.

Student Loan Debt: Select the type of student loan you have — HELP, SSL, TSL, or SFSS. If you have both HELP and SFSS debts, choose "Both." Repayments are shown as a separate line item in your results.

Spouse and Dependent Children: If you chose a low-income Medicare Levy reduction, you will be asked if you have a spouse and how many dependent children you have. This information is used to work out your family income threshold for the Medicare Levy reduction.

Spouse's Weekly Income: If you have a spouse, enter their weekly income. This is used together with your income to calculate the family Medicare Levy reduction.

Annual Tax Offset or Approved Variation: Enter any annual tax offset or ATO-approved variation amount in dollars. This reduces the total tax withheld each pay period. Leave it at zero if you do not have one.

Once all fields are filled in, click Calculate Withholding to see your results. Click Clear / Reset to start over with the default values.

What Is PAYG Withholding?

PAYG stands for Pay As You Go. It is the tax your employer takes out of your pay and sends to the Australian Taxation Office (ATO) on your behalf. This money goes toward your income tax bill for the year. When you lodge your tax return, the ATO checks if the right amount was withheld. If too much was taken out, you get a refund. If too little was taken out, you owe the difference.

How PAYG Withholding Is Calculated

The ATO publishes tax withholding schedules each financial year. These schedules use your gross pay, how often you are paid, and your tax status to work out how much tax to withhold. Your employer uses these schedules every time they process your pay.

The amount withheld depends on a few key factors:

Your gross taxable earnings — the amount you earn before tax in each pay period.
Your pay frequency — whether you are paid weekly, fortnightly, monthly, or on another cycle. Your pay is multiplied out to an annual figure to find the right tax bracket.
The tax-free threshold — if you claim it, the first $18,200 of your yearly income is not taxed. You can only claim it from one employer.
Your residency status — Australian residents, non-residents, and Working Holiday Makers each have different tax rates.
The Medicare Levy — most Australian residents pay an extra 2% levy to help fund the public health system. Some people qualify for a reduction or full exemption based on their income or family situation.

Student Loan Repayments

If you have a HELP, SSL, TSL, or SFSS debt, your employer must also withhold extra money for compulsory repayments once your annual income is above a certain threshold. The repayment rate goes up as your income rises. These amounts are shown as a separate line from your income tax. To model different repayment strategies, see our Student Loan Calculator.

Tax Scales Explained

The ATO groups workers into numbered tax scales:

Scale 1 — resident who has not claimed the tax-free threshold.
Scale 2 — resident who has claimed the tax-free threshold (most common).
Scale 3 — foreign resident (non-resident for tax purposes).
Scale 4 — worker who has not provided a Tax File Number (TFN). Tax is withheld at the top rate.
Scale 6 — Working Holiday Maker on a 417 or 462 visa.

What This Calculator Does

This PAYG withholding calculator estimates the tax taken from a single pay period using official ATO rates from the 2017–18 to 2025–26 financial years. Enter your gross earnings, choose your pay cycle and tax status, and the tool shows your estimated tax withheld, Medicare Levy, any student loan repayment, and your take-home pay. It also gives you a step-by-step breakdown of the math so you can see exactly how each number is worked out.

Keep in mind that PAYG withholding covers income tax only — it does not include superannuation contributions, which are calculated separately. You can also use our Salary Calculator to compare different pay structures or convert between pay frequencies.

This calculator is a guide only. For official figures, use the ATO Tax Withheld Calculator or speak with a registered tax agent.

Formulas used

Annualised Taxable Income

I_{\text{annual}} = G \times n

Progressive Income Tax (bracket sum)

T_{\text{base}} = \sum_{i=1}^{k} \bigl(\text{Band}_i \times r_i\bigr)

Medicare Levy (shade-in range)

M = \begin{cases} 0 & I \le T \\ \min\!\bigl((I - T) \times 0.10,\; I \times 0.02\bigr) & T < I < 1.25T \\ I \times 0.02 & I \ge 1.25T \end{cases}

Per-Period Tax Withheld

W = \operatorname{round}\!\left(\frac{T_{\text{base}} + M - O}{n}\right)

Student Loan Repayment (per period)

L = \operatorname{round}\!\left(\frac{r_{\text{loan}} \times I_{\text{annual}}}{n}\right)

Effective Withholding Rate

E = \frac{W}{G} \times 100\%

Net Pay

\text{Net} = (G + A) - W - L

Frequently asked questions

Why does my result say Scale 4 when I pick No TFN Provided?

Scale 4 is the ATO tax scale for workers who have not given their employer a Tax File Number (TFN). It applies the highest withholding rate — 47% for residents and 45% for non-residents. This rate covers income tax, Medicare, and all other components in one flat percentage. To avoid this high rate, give your employer a valid TFN or lodge a TFN declaration.

Can I claim the tax-free threshold from more than one employer?

No. You can only claim the tax-free threshold from one employer at a time. If you have a second job, choose Tax-Free Threshold Not Claimed for that job. Claiming it from two employers at once means too little tax is withheld during the year, and you may owe money when you lodge your tax return.

What is the difference between gross taxable earnings and gross pay?

Gross taxable earnings are the part of your pay that is subject to tax. Gross pay is your total pay, which includes gross taxable earnings plus any non-taxed allowances like tool or travel allowances. Tax is only calculated on the taxable portion, but the allowances are added back in when working out your net pay.

Why is the Medicare Levy field greyed out?

The Medicare Levy field is disabled when it does not apply to your situation. This happens if you select Non-Resident, Working Holiday Maker, or No TFN Provided. Non-residents and Working Holiday Makers are not subject to the Medicare Levy. For No TFN, the top withholding rate already covers all tax components including Medicare.

What does the annualised equivalent figure mean?

The annualised equivalent takes your gross earnings for one pay period and multiplies it by the number of pay periods in a year. For example, if you earn $2,500 per fortnight, the annualised amount is $2,500 × 26 = $65,000. The ATO uses this yearly figure to find the right tax bracket and work out how much tax to withhold each period.

How do I know if I qualify for a Medicare Levy reduction or exemption?

You may qualify for a full exemption if you are a foreign resident for tax purposes or hold certain visas. A half exemption applies if you were entitled to Medicare for only part of the year. A low-income reduction applies if your annual income is below the Medicare Levy threshold. For 2025–26, the single threshold is $27,222. If you are unsure, check with the ATO or a tax agent.

When do student loan repayments start being withheld?

Your employer starts withholding student loan repayments once your annualised income goes above the compulsory repayment threshold. For HELP, SSL, and TSL debts in 2025–26, the threshold is $54,435. If your income is below that amount, no repayment is withheld. The repayment rate increases as your income rises.

What is the difference between HELP and SFSS debts?

HELP (Higher Education Loan Program) includes HECS-HELP, FEE-HELP, and SA-HELP debts for university study. It also covers SSL (Student Start-up Loan) and TSL (Trade Support Loan) debts. SFSS (Student Financial Supplement Scheme) was a separate loan program that closed in 2004. If you have both types, select Both HELP and SFSS Debts so both repayment rates are applied.

What does the tax offset or approved variation field do?

This field lets you enter an annual dollar amount that reduces your total tax withheld each period. Common uses include an ATO-approved PAYG variation or an estimated tax offset. The calculator divides the annual amount by the number of pay periods and subtracts it from your withholding. Leave it at zero if you do not have an approved variation.

Why is my net pay shown as negative?

A negative net pay means the total deductions — tax plus any student loan repayment — are more than your gross pay. This can happen if you have a very small gross amount combined with high withholding, such as when no TFN is provided. In practice, your employer would still withhold the required tax, and you may receive a refund when you lodge your tax return.

What is bi-fortnightly or 4-weekly pay?

Bi-fortnightly means you are paid every four weeks, which gives 13 pay periods in a year. This is different from monthly pay, which has 12 pay periods. Choosing the wrong option will change the annualised income figure and may give you an incorrect withholding estimate. Check your payslip or ask your employer if you are unsure which cycle applies.

Does this calculator include superannuation?

No. This calculator only estimates PAYG tax withholding, Medicare Levy, and student loan repayments. Superannuation (super) is a separate payment your employer makes on top of your gross pay. It is not deducted from your take-home pay unless you make voluntary pre-tax contributions.

How are Working Holiday Maker tax rates different?

Working Holiday Makers (WHM) on a 417 or 462 visa are taxed at a flat 15% on the first $45,000 of annual income (for 2024–25 and 2025–26). Income above that amount is taxed at standard non-resident rates. The tax-free threshold and Medicare Levy do not apply to WHMs.

Can I use this calculator to check my payslip?

Yes. Enter the same gross earnings, pay period, and tax settings shown on your payslip. Compare the calculator's withholding amount to the tax deducted on your payslip. Small differences of a dollar or two can occur due to rounding. If there is a large gap, check that your TFN declaration details match what you entered.

Why does the calculator round the tax withheld to the nearest dollar?

The ATO requires employers to round PAYG withholding amounts to the nearest whole dollar for each pay period. This calculator follows the same rule. Over a full year, small rounding differences even out and are reconciled when you lodge your tax return.

What financial years does this calculator support?

This calculator supports Australian financial years from 2017–18 through to 2025–26. Each year uses the official ATO tax brackets, Medicare thresholds, and student loan repayment rates for that period. Select an earlier year if you need to check historical pay, back-pay, or past amendments.

What happens if I do not claim the tax-free threshold?

If you do not claim the tax-free threshold, your employer uses Scale 1 instead of Scale 2. This means tax is withheld from the first dollar you earn, with no tax-free portion. You would typically do this for a second job. Any overpaid tax is refunded when you lodge your annual tax return.

How is the effective withholding rate calculated?

The effective withholding rate is the total tax withheld for the pay period divided by your gross taxable earnings, shown as a percentage. For example, if $500 is withheld from $2,500 in earnings, your effective rate is 20%. This rate is usually lower than your top marginal tax bracket because not all of your income is taxed at the highest rate.

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Introduction

How to Use Our PAYG Withholding Calculator

What Is PAYG Withholding?

How PAYG Withholding Is Calculated

Student Loan Repayments

Tax Scales Explained

What This Calculator Does

Formulas used

Frequently asked questions

Why does my result say Scale 4 when I pick No TFN Provided?

Can I claim the tax-free threshold from more than one employer?

What is the difference between gross taxable earnings and gross pay?

Why is the Medicare Levy field greyed out?

What does the annualised equivalent figure mean?

How do I know if I qualify for a Medicare Levy reduction or exemption?

When do student loan repayments start being withheld?

What is the difference between HELP and SFSS debts?

What does the tax offset or approved variation field do?

Why is my net pay shown as negative?

What is bi-fortnightly or 4-weekly pay?

Does this calculator include superannuation?

How are Working Holiday Maker tax rates different?

Can I use this calculator to check my payslip?

Why does the calculator round the tax withheld to the nearest dollar?

What financial years does this calculator support?

What happens if I do not claim the tax-free threshold?

How is the effective withholding rate calculated?

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