Your take-home pay on the national minimum wage: what clears after tax and Medicare

How to work out your take-home pay on the national minimum wage

If you are an Australian resident earning the national minimum wage, you want to know how much actually lands in your bank account each week or fortnight. The answer depends on income tax brackets, the Medicare levy, and the Low Income Tax Offset (LITO). This guide walks you through the calculation for the 2026-27 tax year using the official rates.

The national minimum wage figures

Fair Work sets the national minimum wage at $26.44 per hour and $1,004.90 per week for a full-time employee working 38 hours. That works out to an annual salary of $52,255 (rounded). These are before tax and before any superannuation contributions.

Step 1: Calculate your income tax

The Australian Taxation Office uses a progressive tax scale for residents. For 2026-27, the brackets are:

• $0 to $18,200: no tax
• $18,201 to $45,000: 15 cents for each dollar over $18,200
• $45,001 to $135,000: $4,020 plus 30 cents for each dollar over $45,000
• $135,001 to $190,000: $31,020 plus 37 cents for each dollar over $135,000
• Over $190,000: $51,370 plus 45 cents for each dollar over $190,000

On $52,255, your tax before offsets is:

• First $18,200: $0
• Next $26,800 (up to $45,000): $26,800 × 0.15 = $4,020
• Remaining $7,255 (over $45,000): $7,255 × 0.30 = $2,176.50
• Total gross tax: $6,196.50

Step 2: Apply the Low Income Tax Offset (LITO)

LITO reduces your tax bill. For 2026-27, the maximum LITO is $700 for incomes up to $37,500. It phases out gradually. On $52,255, you are in the phase-out range between $45,001 and $66,667. The offset is $325 minus 1.5 cents for each dollar over $45,000. That is $325 – ($7,255 × 0.015) = $325 – $108.83 = $216.17. So your tax after LITO is $6,196.50 – $216.17 = $5,980.33.

Step 3: Add the Medicare levy

The Medicare levy is 2% of your taxable income. The latest published single-person thresholds are $28,011 and $35,013. If you earn above $35,013, you pay the full 2%. On $52,255, that is $52,255 × 0.02 = $1,045.10.

Step 4: Total deductions and take-home pay

Total tax and Medicare: $5,980.33 + $1,045.10 = $7,025.43. Subtract from $52,255 to get $45,229.57 annual take-home pay. That is about $869.80 per week or $1,739.60 per fortnight.

What about super and other deductions?

Superannuation is not taken from your pay. The national minimum wage is quoted as a base rate, and your employer must add 12% super from 1 July 2026. That money goes into your super fund, not your bank account. If you have a HELP or HECS debt, or if you salary-sacrifice, your take-home will be lower. This estimate excludes those.

For other salary levels

The same method applies to any income. Use the Take-home pay guide to estimate your own figures. The Tax and Medicare page has full details on offsets and the Medicare levy surcharge for higher earners.

Important notes

• This is a resident estimate only. It does not include the Medicare levy surcharge, HELP repayments, or payroll tax-table rounding.
• The figures are based on the 2026-27 tax year rates published by the ATO and Fair Work.
• If you work part-time or casual, your weekly pay will be lower, but the same hourly rate and tax rules apply proportionally.

Use the Clearance tool on this site to run your own numbers quickly.