How the max verstappen salary compares to your take-home pay after tax and Medicare levy

Understanding your take-home pay

When you look at a job advertisement, the salary figure is usually the gross amount – before tax, the Medicare levy, and any other deductions. What actually lands in your bank account each fortnight depends on several factors: which tax bracket you fall into, whether you claim the tax-free threshold, your Medicare levy obligations, and any salary sacrifice arrangements. Even the world’s highest-paid athletes, like Max Verstappen, face these same principles, though at a very different scale.

The 2026–27 tax brackets

For the 2026–27 tax year, the Australian Tax Office applies these marginal rates to residents:

• $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. Your employer uses the ATO’s monthly tax table to work out how much to withhold from each pay period. If you claim the tax-free threshold, the withholding is lower. For example, on monthly earnings of $4,311.68, the ATO table shows $589 withheld if you claim the threshold, compared to $1,070 if you don’t. That difference directly affects your fortnightly take-home.

The Medicare levy and its thresholds

Most employees pay the Medicare levy at 2% of taxable income. However, the latest published 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, the levy is phased in at 10 cents per dollar over the lower threshold. Above $35,013, the full 2% applies. For a full-time worker on the national minimum wage of $26.44 per hour ($52,255 annualised), the levy adds about $1,045 per year, reducing fortnightly pay by roughly $40. For someone earning the average full-time adult ordinary time earnings of $108,352, the levy is about $2,167 per year – around $83 per fortnight.

Superannuation: 12% from 1 July 2026

From 1 July 2026, the super guarantee rate is 12% of your ordinary time earnings, up to a maximum contribution base of $270,830 per year. This is paid by your employer on top of your salary, so it doesn’t reduce your take-home pay directly. However, if you choose to salary sacrifice additional amounts into super, your taxable income decreases, which can lower the tax withheld and increase your net pay slightly. But remember, the sacrificed money goes into your super account, not your bank account.

The max verstappen salary as a benchmark

According to Forbes, Max Verstappen earned $86 million in 2026 from his Formula 1 career and endorsements. That figure is in US dollars and is far above any Australian tax bracket. If that income were subject to Australian tax, the top marginal rate of 45% would apply to the vast majority, and the Medicare levy would add another 2%. Even with the Low Income Tax Offset (which phases out above $66,667), his tax bill would be enormous. But for most Australian employees, the key takeaway is how the combination of brackets, the Medicare levy, and super changes your fortnightly pay. The higher your income, the more each additional dollar is taxed, and the more the Medicare levy bites.

What changes your fortnight

Your fortnightly take-home pay is not just gross divided by 26. Your employer withholds tax based on your declared tax-free threshold and any study or training loan debts. Then the Medicare levy is applied at tax time, but your employer may adjust withholding if you lodge a Medicare levy variation declaration. If you salary package items like a car or additional super, your taxable income drops, reducing tax withheld. The Take-home pay guide on this site walks through a typical calculation. For a detailed look at how tax and the Medicare levy interact, see Tax and Medicare. And if you’re considering salary sacrifice, the Salary packaging page explains the trade-offs.

Putting it all together

Let’s take a typical full-time employee earning $80,000 per year (close to the all-employees average of $82,118). Using the 2026–27 rates:

• Tax on $80,000: $4,020 + 30% of ($80,000 – $45,000) = $4,020 + $10,500 = $14,520
• Medicare levy: 2% of $80,000 = $1,600
• Total deductions: $16,120
• Net annual: $63,880
• Fortnightly take-home: about $2,457

If that same employee earns $108,352 (full-time adult ordinary time average):

• Tax: $4,020 + 30% of ($108,352 – $45,000) = $4,020 + $19,005.60 = $23,025.60
• Medicare levy: 2% of $108,352 = $2,167.04
• Total: $25,192.64
• Net annual: $83,159.36
• Fortnightly: about $3,198

These are estimates and exclude HELP/HECS, the Medicare levy surcharge, and any tax offsets you may be entitled to. The Low Income Tax Offset can reduce tax for those earning under $66,667, but it cannot reduce tax below zero.

Final thoughts

Whether you earn the minimum wage or a seven-figure salary like Max Verstappen, the principles are the same: tax brackets, the Medicare levy, and super all shape what you actually take home. Understanding these elements helps you budget, negotiate salary, and plan for the future. Use the Clearance tool to estimate your own take-home pay, or check the Benchmarks page for current wage data.