How to Calculate Your Take-Home Pay: Australian Minimum Wage 2025 and Current Rates
The national minimum wage is $26.44 per hour ($1,004.90 per week), but take-home pay depends on your taxable income, tax offsets, and Medicare levy.
Understanding Your Take-Home Pay
When you earn a salary in Australia, the amount that lands in your bank account is your gross pay minus income tax and the Medicare levy. This guide explains how to work out that figure for a resident employee, using the latest tax rates and the national minimum wage as a benchmark.
The Australian Minimum Wage 2025 and Current Rates
While the australian minimum wage 2025 was a previous figure, the current national minimum wage from 1 July 2026 is $26.44 per hour, or $1,004.90 per week for a 38-hour week. This is set by Fair Work and applies to most employees not covered by an award or agreement. For a full year, that works out to $52,255. But your take-home pay depends on your total taxable income, not just the minimum wage.
How Income Tax Is Calculated
The Australian Taxation Office applies a progressive tax scale for residents. For the 2026–27 tax year, the rates are:
- Up to $18,200: Nil
- $18,201 to $45,000: 15c for each $1 over $18,200
- $45,001 to $135,000: $4,020 plus 30c for each $1 over $45,000
- $135,001 to $190,000: $31,020 plus 37c for each $1 over $135,000
- Over $190,000: $51,370 plus 45c for each $1 over $190,000
You also get the Low Income Tax Offset (LITO) if your taxable income is below $66,667. The maximum LITO is $700 for incomes up to $37,500, then it phases out. LITO can only reduce your tax to zero, not create a refund.
The Medicare Levy
Most residents pay the Medicare levy at 2% of their taxable income. However, if your income is below the single lower threshold of $28,011, you pay nothing. Between $28,011 and $35,013, you pay 10c per $1 over the lower threshold. Above $35,013, the full 2% applies. These are the latest published single-person thresholds. For families, different thresholds apply.
Putting It Together: Take-Home Pay Example
Suppose you earn the national minimum wage of $52,255 per year. Your tax would be:
- First $18,200: $0
- Next $26,800 (from $18,201 to $45,000): 15c = $4,020
- Remaining $7,255 (from $45,001 to $52,255): 30c = $2,176.50
- Gross tax: $6,196.50
- Less LITO: $700 (since income is $52,255, LITO is $325 minus 1.5c per $1 over $45,000 = $325 - $108.83 = $216.17, but the maximum $700 applies only up to $37,500; at $52,255, LITO is actually $325 - (1.5c * $7,255) = $325 - $108.83 = $216.17. So net tax after LITO: $6,196.50 - $216.17 = $5,980.33)
- Medicare levy: 2% of $52,255 = $1,045.10
- Total deductions: $5,980.33 + $1,045.10 = $7,025.43
- Take-home pay: $52,255 - $7,025.43 = $45,229.57 per year, or about $1,739.60 per fortnight.
This is an estimate. Your actual take-home may differ if you have HELP/HECS debt, salary sacrifice, or other adjustments.
Using the Tools on This Site
To get a personalised estimate, use the Clearance tool on this site. It applies the latest tax rates and Medicare thresholds. You can also explore Take-home pay guides for different income levels. For more on the minimum wage, see the Minimum wage page.
Superannuation and Your Pay
Employer super contributions are 12% from 1 July 2026, up to a maximum contribution base of $270,830. Super is not deducted from your take-home pay if your salary is quoted as 'plus super'. If your salary is 'including super', the super component is part of your total remuneration and your take-home will be lower. Always check the wording of your employment contract.
Other Deductions and Offsets
This guide covers only income tax and the Medicare levy for a resident without a HELP/HECS debt, Medicare levy surcharge, or salary sacrifice. If you have a study or training loan, an extra repayment is added to your tax. The Medicare levy surcharge applies if you do not have appropriate private hospital cover and your income exceeds a threshold. Salary packaging can reduce your taxable income. For a full picture, consult the Tax and Medicare topic.
Final Note
This estimate is not a tax assessment. Always check your own circumstances with the ATO or a tax professional. The figures here are based on the 2026–27 tax year and the latest published benchmarks.
Questions
How do I calculate my take-home pay from the Australian minimum wage?
Start with your gross annual salary. For a full-time worker on the national minimum wage of $26.44 per hour (38 hours per week, 52 weeks), that's $52,255 per year. Apply the 2026–27 resident tax rates: no tax on the first $18,200, then 15c per $1 up to $45,000, then 30c per $1 on the remainder. Subtract the Low Income Tax Offset (LITO) which reduces tax by up to $700. Then add the Medicare levy at 2% of taxable income (full rate applies above $35,013). The result is your annual tax and Medicare, which you subtract from gross pay to get take-home. Use the Clearance tool on this site for a quick estimate.
What are the Medicare levy thresholds for single people?
The latest published single-person Medicare thresholds are $28,011 and $35,013. If your taxable income is below $28,011, you pay no Medicare levy. Between $28,011 and $35,013, you pay 10c per $1 over the lower threshold. Above $35,013, you pay the full 2% on your entire taxable income. These thresholds apply to the 2026–27 tax year.
Does superannuation affect my take-home pay?
Superannuation is paid by your employer on top of your salary at 12% from 1 July 2026, up to a maximum contribution base of $270,830. It is not deducted from your take-home pay if your job ad states a salary 'plus super'. If your salary is quoted as 'including super', then the super component is part of your total package and your take-home pay will be lower because the super is set aside. Always check whether the advertised rate is base salary or total package.