How to Compare an IT Salary Offer Using the Amount That Reaches Your Account

Why Your IT Salary Advertised Figure Isn’t What You Bank

When you see an IT salary in a job ad, the number is almost always the gross annual amount – before tax, before the Medicare levy, and often before super. What actually lands in your account each fortnight is your take-home pay, and knowing how to calculate that lets you compare offers on a level playing field.

This guide walks you through the 2026–27 tax rates and the Medicare levy so you can turn any IT salary into a realistic fortnightly deposit.

Step 1: Know the Tax Brackets for 2026–27

The Australian Taxation Office publishes resident tax rates each year. For 2026–27, the rates are:

Taxable income	Tax on this income
$0 – $18,200	Nil
$18,201 – $45,000	15c for each $1 over $18,200
$45,001 – $135,000	$4,020 plus 30c for each $1 over $45,000
$135,001 – $190,000	$31,020 plus 37c for each $1 over $135,000
$190,001 and over	$51,370 plus 45c for each $1 over $190,000

These rates do not include the Medicare levy of 2%. You can also claim the Low Income Tax Offset (LITO) if your taxable income is under $66,667, which reduces your tax bill.

Step 2: Add the Medicare Levy

Most full-time employees pay the full 2% Medicare levy on their taxable income. The latest single‑person thresholds are $28,011 (lower) and $35,013 (upper). If your taxable income is below $28,011 you pay no levy; between $28,011 and $35,013 you pay 10c per dollar over the lower threshold. Above $35,013 you pay the full 2%.

For a typical IT salary well above $35,013, simply add 2% of your taxable income to your tax bill.

Step 3: Work Out Your Fortnightly Take-Home

Once you have your annual tax plus Medicare levy, subtract that total from your gross salary. Divide the result by 26 to get your fortnightly pay. For example, a $100,000 IT salary:

• Tax: $4,020 + 30c × ($100,000 – $45,000) = $4,020 + $16,500 = $20,520
• Medicare levy: 2% × $100,000 = $2,000
• Total deductions: $22,520
• Annual take-home: $77,480
• Fortnightly take-home: $77,480 ÷ 26 ≈ $2,980

Your employer withholds tax using the monthly tax table from the ATO, so the amount in your bank will match this calculation closely (ignoring rounding).

Step 4: Compare IT Salary Offers on Net Pay

When you have two IT salary offers, run the same calculation for each. The one with the higher take-home pay may not be the one with the higher gross figure if one includes super or a larger tax offset. Use our Take-home pay guide to see how super and salary packaging affect the numbers.

Remember that the national minimum wage is $26.44 per hour or $1,004.90 per week (from Fair Work), but IT salaries are typically well above that. The average full‑time adult ordinary time earnings are $2,083.70 per week according to the ABS, which is about $108,352 a year. Your IT salary may be above or below that average depending on your role.

Step 5: Check Your Pay Slip

Your employer must provide a pay slip showing gross pay, tax withheld, and any other deductions. Compare the tax withheld to the amount you calculated. If it looks wrong, check the ATO’s tax tables or use the Clearance tool to estimate your refund or debt.