How your take-home pay is calculated
Gross salary minus work-related deductions gives taxable income. We apply the official ATO resident tax brackets for the selected year, subtract any Low Income Tax Offset (LITO up to $700), add Medicare levy, add Medicare Levy Surcharge (MLS) if you do not have private hospital cover and earn over $105,000 single for 2026-27 ($101,000 for 2025-26), and add HECS/HELP repayment using the marginal system that started in 2025-26. Superannuation Guarantee (SG) 12% is shown on top by default 0% so you can add 0–12% without misleading take-home.
2026-27 Australian resident tax rates
| Income | Tax |
|---|---|
| 0–$18,200 | Nil |
| $18,201–$45,000 | 15c per $1 over $18,200 |
| $45,001–$135,000 | $4,020 + 30c over $45,000 |
| $135,001–$190,000 | $31,020 + 37c over $135,000 |
| $190,001+ | $51,370 + 45c over $190,000 |
For 2025-26 the lowest rate was 16%: $18,201–$45,000 16c over $18,200, $45,001–$135,000 $4,288 + 30c over $45,000, $135,001–$190,000 $31,288 + 37c over $135,000, $190,001+ $51,638 + 45c over $190,000. Resident tax-free threshold $18,200 applies both years.
Worked example: $95,000 salary
Resident, private hospital cover, no HECS debt, 2026-27: Taxable income $95,000. Income tax = $4,020 + ($95,000 - $45,000) × 30% = $4,020 + $15,000 = $19,020. Medicare levy = $95,000 × 2% = $1,900 (income above $35,013 full rate). Total deductions $20,920. Take-home $74,080 per year, which is $6,173 per month, $2,849 per fortnight, $1,425 per week. Calculation matches the calculator above.
Same $95,000 with HECS/HELP debt: HECS repayment = ($95,000 − $69,528) × 15% = $25,472 × 15% = $3,821. Net $74,080 − $3,821 = $70,259 per year, $2,702 per fortnight, $1,351 per week. With private cover off and income over $105,000, MLS would add 1%–1.5% extra.
Medicare levy and Medicare Levy Surcharge explained
Most Australian residents pay 2% Medicare levy on taxable income to fund Medicare. Low-income reduction applies with 10% shade-in.
Verified against ATO: For 2025-26 and 2026-27, singles pay no levy up to $28,011, with 10% shade-in to $35,013 where full 2% applies. For 2023-24 thresholds were $26,000–$32,500, raised to $27,222–$34,027 by Treasury Laws Amendment (More Cost of Living Relief) Act 2025, then to $28,011–$35,013 for 2025-26 and 2026-27 as per myTax 2026 Table 2. Families: no levy up to $47,238, shade-in to $59,047, plus $4,338 per child lower threshold and $5,423 upper. Seniors and pensioners have higher thresholds: $44,268–$55,335 single for 2025-26. Foreign residents and Working Holiday Makers are generally exempt from Medicare levy. Source: ATO Medicare levy.
MLS is separate: 1% to 1.5% extra if you, your spouse or dependent children do not have appropriate private hospital cover and your income for MLS purposes is over $105,000 single or $202,000 family for 2026-27, or $101,000 single for 2025-26. Toggle hospital cover in the calculator to see difference.
HECS/HELP repayments in 2026-27
From 2025-26 the ATO uses a marginal system, not a flat rate on total income. You only pay on income above the threshold. This is a key change: previously 7%–10% flat on total income, now marginal 15c/17c/10% on amount above threshold.
2026-27: $0–$69,528 nil. $69,529–$129,717: 15c for each $1 over $69,528. $129,718–$186,050: $9,028 plus 17c for each $1 over $129,717. $186,051 and above: 10% of total repayment income. Threshold $69,528 is indexed. Source: ATO study loans thresholds.
2025-26: $0–$67,000 nil. $67,001–$125,000: 15c over $67,000. $125,001–$179,285: $8,700 plus 17c over $125,000. $179,286+: 10%.
Example: $80,000 in 2026-27 with HECS = ($80,000 - $69,528) × 15% = $1,571 repayment. Net with HECS = $80,000 - $14,520 tax - $1,600 Medicare - $1,571 HECS = $62,309. Without HECS net $63,880. For $95,000, HECS = $3,821 as above.
Superannuation
Super Guarantee (SG) is 12% for both 2025-26 and 2026-27, unchanged. It is paid by employer on top of salary, not deducted from take-home unless you salary sacrifice. Default in this calculator is 0% so you can add it voluntarily via slider 0–12%. This avoids misleading claims and is safer for AdSense policy — we show super as info on top, not auto-deducted. If your contract says $95k plus super, $95k is taxable and $11,400 super extra at 12%. If your contract says $95k package including super, your cash is $95k / 1.12 = $84,821 plus $10,179 super.
Working Holiday Makers (417/462) and foreign residents: how tax differs
Working Holiday Makers on visas 417 or 462 have no tax-free threshold. For 2026-27 and 2025-26: 15% on income up to $45,000, then 30% from $45,001–$135,000 ($6,750 + 30% over $45k), 37% from $135,001–$190,000 ($33,750 + 37% over $135k), 45% above $190,000. They are generally exempt from Medicare levy and do not get LITO. Example: $80,000 WHM = $6,750 + ($80,000-$45,000)×30% = $6,750 + $10,500 = $17,250 tax, net $62,750 vs resident $63,880.
Foreign residents also have no tax-free threshold: 30% from first dollar to $135,000, 37% from $135,001–$190,000 ($40,500 + 37% over $135k), 45% above $190,000. Generally exempt from Medicare levy and LITO. Check full tables and residency rules at ATO tax rates and foreign residents and WHM page.
What changed from 2025-26 to 2026-27
Stage 3 tax cut update: lowest rate drops from 16% to 15% for incomes $18,201–$45,000. Max saving $268 per year for anyone earning $45,000+ because ($45,000 - $18,200) × (16% - 15%) = $26,800 × 1% = $268. Tax on $95,000 drops from $19,288 (2025-26) to $19,020 (2026-27), saving $268. Tax on $80,000 drops from $14,788 to $14,520, saving $268.
Medicare levy low-income thresholds: For 2023-24 thresholds were $26,000–$32,500, raised to $27,222–$34,027 by Treasury Laws Amendment (More Cost of Living Relief) Act 2025, then to $28,011–$35,013 for 2025-26 and 2026-27 as per myTax 2026 Table 2 and latest legislated values. Our calculator uses $28,011–$35,013 for both years after verification against ATO.
HECS/HELP: nil threshold rises $67,000 → $69,528 due to indexation, saving $379 on $80k example ($1,950 in 2025-26 vs $1,571 in 2026-27) and $379 on $95k example ($4,200 vs $3,821).
MLS thresholds: $101,000 single in 2025-26 → $105,000 single in 2026-27. SG 12% unchanged both years.
Frequently asked questions
How much is $80k after tax in Australia?
As a resident in 2026-27 with private hospital cover and no HECS debt, $80,000 pays $14,520 income tax plus $1,600 Medicare levy, leaving $63,880 take-home — about $2,457 per fortnight, $1,228 per week. With HECS debt, repayment is $1,571 (($80,000 - $69,528) × 15%), leaving $62,309.
Why does my payslip differ from the calculator?
Payslips use PAYG withholding tables that annualise your pay period and may include different assumptions for HELP, MLS, tax offsets, salary sacrifice, or reportable fringe benefits. Our calculator uses annual taxable income with exact ATO brackets for 2026-27 (15% lowest rate), LITO up to $700, Medicare levy $28,011–$35,013 shade-in 10% and HECS marginal $69,528 nil.
Is super included in my salary?
No, by default super is 0% in this calculator so you can add it. Usually super is on top of your salary. $95k plus super means $95k taxable plus 12% super guarantee extra ($11,400). Use the super slider to add 0–12%.
How is HECS/HELP calculated?
From 2025-26 the ATO uses a marginal system, not a flat rate. For 2026-27: $0–$69,528 nil, $69,529–$129,717 15c per $1 over $69,528, $129,718–$186,050 $9,028 plus 17c over $129,717, $186,051+ 10% of income. For 2025-26: $0–$67,000 nil. Example $80k in 2026-27 = ($80,000 - $69,528) × 15% = $1,571. Example $95k = $3,821.
Does this include Medicare Levy Surcharge?
Yes. If you earn above $105,000 as a single without private hospital cover, MLS of 1% to 1.5% applies. For 2026-27 and 2025-26, singles pay no Medicare levy up to $28,011, with 10% shade-in to $35,013 where full 2% applies. Families: $47,238–$59,047 plus $4,338 per child. Toggle hospital cover to see difference.
How often is this calculator updated?
We check ATO rates each September and after the Federal Budget. Last updated 24 September 2026. Sources: ATO tax rates https://www.ato.gov.au/tax-rates-and-codes/tax-rates-australian-residents, Medicare levy https://www.ato.gov.au/tax-rates-and-codes/medicare-levy and study loans thresholds https://www.ato.gov.au/tax-rates-and-codes/study-and-training-support-loans-rates-and-thresholds.