ATO Accurate · 2025–26

Salary Calculator Australia

See your exact take-home pay after income tax, Medicare levy, HECS/HELP repayment and superannuation — instantly.

$18,200Tax-free threshold
16%Lowest tax rate
2%Medicare levy
12%Super guarantee
$67KHECS threshold
$700Max LITO offset
Enter Net Salary Details
Enter your salary and options
Include HECS/HELP repayment 2025–26 marginal system, threshold $67,000
Low Income Tax Offset (LITO) Up to $700 offset, tapers at $37,500–$66,667
Show superannuation 12% SG on ordinary time earnings (2025–26)
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HECS/HELP 2025–26: Repayments now use the new marginal system — you only repay on income above $67,000. The 20% HELP debt reduction was applied from 1 June 2025.
Take-Home Pay
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Annual Take-Home
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Total Tax + Levies
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Superannuation
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Effective Tax Rate
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inc. Medicare levy
Marginal Tax Rate
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top bracket rate
How your salary is divided
Take-home pay $0 0%
Income tax $0 0%
Medicare levy $0 0%
HECS/HELP repayment $0 0%
Tax Bracket Breakdown — 2025–26
Pay by Period
Component Weekly Fortnightly Monthly Annually

2025–26 Australian Income Tax Brackets

Stage 3 rates effective 1 July 2024, confirmed for 2025–26. Excludes 2% Medicare levy.

Taxable Income Rate Tax on this band Cumulative tax Notes
$0 – $18,2000%$0$0Tax-free threshold
$18,201 – $45,00016%Up to $4,288$4,288Down from 19% (Stage 3)
$45,001 – $135,00030%Up to $27,000$31,288Down from 32.5%
$135,001 – $190,00037%Up to $20,350$51,638Threshold raised from $120K
$190,001+45%45c per $1$51,638 + 45%Top marginal rate
Add 2% Medicare levy on most taxable income. Low Income Tax Offset (LITO) of up to $700 applies for incomes up to $66,667. From 1 July 2026 the 16% rate drops to 15%.

Low Income Tax Offset (LITO)

  • Maximum offset: $700 (income ≤ $37,500)
  • Phases out $0.05 per $1 from $37,500–$45,000
  • Then $0.015 per $1 from $45,001–$66,667
  • Zero above $66,667 taxable income
  • Applied automatically — no claim needed
  • Effective tax-free income ~$22,575 with LITO

Medicare Levy

  • Standard rate: 2% of taxable income
  • Phase-in threshold: $29,207 (singles)
  • Full levy applies above $36,509
  • Medicare Levy Surcharge: 1–1.5% for high earners without private hospital cover
  • MLS singles threshold: $93,000 (1%)
  • MLS singles threshold: $108,001 (1.25%), $144,001 (1.5%)

HECS/HELP 2025–26

  • New threshold: $67,000 (up from $54,435)
  • New marginal system: pay only on income above $67K
  • 15c per $1 above $67,000 (to $125,000)
  • $8,700 + 17c per $1 above $125,000 (to $179,285)
  • 10% of total income above $179,285
  • 20% HELP debt reduction applied June 2025

Superannuation 2025–26

  • Super Guarantee rate: 12% of OTE
  • Paid on top of your salary by your employer
  • Concessional cap: $30,000 per year
  • Non-concessional cap: $120,000 per year
  • Salary sacrifice reduces your taxable income
  • Super taxed at 15% concessional rate in fund

How to Calculate Your Take-Home Pay in Australia (2025–26)

Your take-home pay (also called net pay) is your gross salary minus income tax, Medicare levy, and any HECS/HELP repayment. Superannuation is paid by your employer on top of your salary and does not reduce your take-home pay directly.

Worked Example — $80,000 Annual Salary (Resident, 2025–26)

Gross salary: $80,000.00

Income tax (brackets): $14,788.00 (0% + 16% + 30%)

Medicare levy (2%): $1,600.00

LITO offset: -$0.00 (not applicable above $66,667)

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Total tax deducted: $16,388.00

Take-home pay: $63,612.00 per year | $5,301.00/month

Superannuation (12%): $9,600.00 (employer contribution, on top)

Effective tax rate: 20.5%

Australia uses a progressive marginal tax system — only the income within each bracket is taxed at that bracket's rate. A pay rise that moves you into a higher bracket only taxes the additional dollars at the higher rate, not your entire income. You can never take home less by earning more.

The Stage 3 tax cuts, which took effect on 1 July 2024 and continue for 2025–26, reduced the 19% rate to 16% and the 32.5% rate to 30%, providing meaningful relief to middle-income earners. The government confirmed in May 2025 these rates apply for the full 2025–26 financial year. From 1 July 2026, the 16% bracket will reduce further to 15%.

Frequently Asked Questions

On a $60,000 salary in 2025–26, you pay $8,788 in income tax and $1,200 in Medicare levy, totalling $9,988 in deductions. Your annual take-home pay is approximately $50,012 — around $4,168 per month or $1,923 per fortnight. Your effective tax rate is 16.6%. Superannuation of $7,200 (12%) is paid by your employer on top.
On a $100,000 salary in 2025–26, income tax is $20,788 and Medicare levy is $2,000, giving a total of $22,788. Take-home pay is approximately $77,212 per year ($6,434/month). The effective tax rate is 22.8% and your marginal rate is 30%. Employer super contributions are $12,000 per year on top of your salary.
No. Employer superannuation contributions (12% in 2025–26) are paid on top of your salary — they do not reduce your take-home pay. However, if you choose to make salary sacrifice contributions to super, those are deducted from your pre-tax salary, which reduces your taxable income and therefore your income tax, but also reduces your take-home pay slightly.
The Low Income Tax Offset (LITO) reduces the amount of income tax you pay. The maximum is $700 for taxable incomes up to $37,500. It phases out between $37,500 and $66,667. You do not need to claim LITO — the ATO applies it automatically when you lodge your tax return. Combined with the $18,200 tax-free threshold, LITO means most Australians effectively pay no income tax until they earn around $22,575.
Salary sacrifice is an arrangement where you agree to receive less salary in exchange for your employer paying for certain benefits or super contributions from your pre-tax income. Common examples include additional superannuation, novated car leases, and laptops. Because you're sacrificing pre-tax salary, your taxable income is lower, so you pay less income tax. The concessional contributions cap (super salary sacrifice + employer SG) is $30,000 for 2025–26.
Your marginal tax rate is the rate that applies to your last dollar of income — the top bracket you've reached. Your effective tax rate is the total tax you pay divided by your total income. Because Australia uses progressive brackets, your effective rate is always lower than your marginal rate. For example, on $100,000 the marginal rate is 30% but the effective rate (including Medicare) is only 22.8% — because the lower brackets still apply to the first portions of your income.
Yes. Foreign residents pay 32.5% from the first dollar up to $135,000, then 37% from $135,001 to $190,000, then 45% above $190,000. Foreign residents do not receive the $18,200 tax-free threshold, do not qualify for LITO, and generally do not pay the Medicare levy. Working Holiday Makers (visa subclasses 417 and 462) pay 15% on the first $45,000, then foreign resident rates above that.
This calculator provides general estimates only based on ATO rates effective 1 July 2025. It does not account for all individual tax situations, deductions, offsets, or specific award conditions. Always verify with the Australian Taxation Office or a registered tax agent. Last updated: April 2026.