Calculate take home pay: what changes your fortnightly amount

How to calculate take home pay

Understanding what reaches your bank account each fortnight involves more than just your salary. The key factors are the income tax brackets, the Medicare levy, and superannuation. This guide explains how each affects your take-home pay for the 2026-27 tax year.

The tax brackets for 2026-27

The Australian Taxation Office sets progressive tax rates. For residents, the brackets are:

• Up to $18,200: nil tax
• $18,201 to $45,000: 15c per $1 over $18,200
• $45,001 to $135,000: $4,020 plus 30c per $1 over $45,000
• $135,001 to $190,000: $31,020 plus 37c per $1 over $135,000
• Over $190,000: $51,370 plus 45c per $1 over $190,000

You may also be eligible for the Low Income Tax Offset (LITO). The maximum LITO is $700 at taxable income up to $37,500, then reduces by 5c per $1 until $45,000, then $325 minus 1.5c per $1 over $45,000 until $66,667. LITO can only reduce your tax to zero.

To calculate take home pay, start with your gross annual salary, apply the tax brackets, subtract any LITO, then deduct the Medicare levy. The result is your annual take-home. Divide by 26 for a fortnightly amount.

The Medicare levy and its thresholds

The Medicare levy is 2% of your taxable income. However, for single people, the latest published thresholds are $28,011 (lower) and $35,013 (upper). If your income is below $28,011, you pay no levy. Between $28,011 and $35,013, a shading applies: you pay 10c per $1 over the lower threshold. Above $35,013, you pay the full 2%. Full-time salaries almost always exceed the upper threshold, so you will pay the full 2%.

For example, if you earn the national minimum wage of $26.44 per hour, your weekly pay is $1,004.90 and annual salary is $52,255 (rounded). At that income, you would pay the full 2% Medicare levy. The levy is calculated on your taxable income before any offsets.

Superannuation: what it means for your take-home

From 1 July 2026, the superannuation guarantee rate is 12% on earnings up to a maximum contribution base of $270,830 per year. How super affects your take-home depends on how your salary is advertised.

• Salary plus super: Your employer pays super on top of your agreed salary. Your take-home pay is based on your gross salary, and super does not reduce your fortnightly amount.
• Salary including super: Your employer pays super from your gross salary. Your take-home is lower because super is deducted first.

Most job ads show salary as 'plus super', so super is not deducted from your take-home. Always check your contract. For more details, see our guide on Super.

How these factors change your fortnightly pay

To calculate take home pay for your situation, follow these steps:

1. Determine your gross annual salary (if part-time, multiply your weekly hours by 52).
2. Apply the tax brackets to find your tax before offsets.
3. Subtract any LITO you are eligible for.
4. Calculate the Medicare levy: 2% of taxable income, adjusted for thresholds if applicable.
5. Subtract tax (after LITO) and Medicare from gross salary. This is your annual take-home.
6. Divide by 26 for a fortnightly amount.

Remember, this is an estimate. It excludes HELP/HECS repayments, the Medicare levy surcharge, salary sacrifice, and payroll tax-table rounding. It is not a tax assessment. For a personalised estimate, use our Clearance tool.

Example using the national minimum wage

Fair Work Ombudsman sets the national minimum wage at $26.44 per hour and $1,004.90 per week. The annualised figure is $52,255. Using the tax brackets:

• Tax on $52,255: $0 on first $18,200, then 15c on $34,055 = $5,108.25. LITO at $52,255 is $325 minus 1.5c per $1 over $45,000 ($7,255) = $325 - $108.83 = $216.17. So tax after LITO = $5,108.25 - $216.17 = $4,892.08.
• Medicare levy: 2% of $52,255 = $1,045.10.
• Total deductions: $5,937.18.
• Annual take-home: $52,255 - $5,937.18 = $46,317.82.
• Fortnightly take-home: $46,317.82 / 26 = $1,781.45.

This is an approximation. Your actual take-home may vary due to rounding and other factors. For more benchmarks, see our Benchmarks page.

Key takeaways

• Your take-home pay is your gross salary minus income tax and Medicare levy.
• Superannuation does not reduce your take-home if your salary is 'plus super'.
• The tax brackets and Medicare thresholds are fixed for 2026-27.
• Use the method above to calculate take home pay for your specific income.

For further reading, explore our guides on Tax and Medicare and Take-home pay.