How your take-home pay is worked out
Your employer quotes a gross salary, but what lands in your account depends on four things: income tax, the Medicare levy, any study-loan repayment, and how your super is treated. This calculator applies the official ATO rates for the financial year you select and shows every line of the calculation.
Income tax is calculated on marginal brackets. For 2025–26, residents pay nothing on the first $18,200, then 16% up to $45,000, 30% up to $135,000, 37% up to $190,000 and 45% above that. Low income earners also receive the low income tax offset (LITO) of up to $700, which the calculator applies automatically. Non-residents are taxed from the first dollar and working holiday makers pay 15% on income up to $45,000.
The Medicare levy adds 2% of taxable income for most residents, with a reduced levy below an income threshold ($35,013 for singles in 2025–26). If you earn above $101,000 and don't hold private hospital cover, the Medicare levy surcharge adds a further 1% to 1.5% — often more than a basic hospital policy costs.
HECS/HELP repayments changed significantly in 2025–26: instead of a percentage of your whole income, you now repay 15c per dollar earned above $67,000 (17c above $125,000), the same way tax brackets work. Earlier years in the calculator use the old flat-rate tables that applied at the time.
Super isn't taxed as salary — your employer pays at least the super guarantee (12% from 1 July 2025) on top of, or as part of, your package. The "Included / On top" toggle handles both ways a package can be quoted, and you can set a custom employer rate if yours pays above the minimum. Salary-sacrificed super reduces your taxable income, though it still counts toward HECS and surcharge income tests.
Deductions — work-related expenses, self-education and similar — reduce your taxable income, so the benefit at tax time is your deduction multiplied by your marginal rate. The calculator shows this precisely: enter your expected deductions and watch the tax line fall while your gross stays the same.
Every figure is an estimate based on the inputs you provide and standard single-taxpayer assumptions. It is general information only — not tax advice. For your personal situation, talk to a registered tax agent or use the ATO's official tools.