Use a salary cal to estimate your take-home pay after tax and Medicare
Your take-home pay after income tax and Medicare levy depends on your salary, but you can use the salary cal method to estimate it against the national minimum wage and full-time ordinary time earnings.
What a salary cal tells you about your take-home pay
When you look at a job advertisement, the salary figure is almost always your gross pay – the amount before tax, the Medicare levy, and any other deductions. What actually lands in your bank account each fortnight is your take-home pay. Using a salary cal (short for salary calculator) helps you estimate that number quickly, so you can compare offers and budget realistically.
This guide explains how the salary cal works for Australian residents in the 2026–27 income year, using the latest tax rates and Medicare thresholds. We also show you how your pay stacks up against two key benchmarks: the national minimum wage and full-time ordinary time earnings.
How the salary cal works
A salary cal applies the progressive tax rates set by the Australian Taxation Office. For 2026–27, the rates are:
- $0 – $18,200: Nil tax
- $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 also need to account for the Low Income Tax Offset (LITO), which can reduce your tax by up to $700 if your taxable income is $37,500 or less, then phases out.
To get your take-home pay, the salary cal subtracts the estimated tax and Medicare from your gross annual salary. If your salary is advertised as “plus super”, remember that the 12% super guarantee is not deducted from your take-home – it’s paid on top by your employer.
Medicare levy and your take-home
The Medicare levy is a flat 2% of your taxable income, but there are reductions for low-income earners. 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 Medicare levy. Between $28,011 and $35,013, the levy is reduced by 10c for each dollar over the lower threshold. Above $35,013, you pay the full 2%. Most full-time salaries will attract the full levy, so your salary cal should include that 2%.
Where your salary sits against the benchmarks
Fair Work Ombudsman sets the national minimum wage at $26.44 per hour or $1,004.90 per week. That works out to about $52,255 per year for a full-time employee working 38 hours a week, 52 weeks a year. This is the legal floor for employees not covered by an award or agreement.
At the other end, the Australian Bureau of Statistics reports that full-time adult ordinary time earnings (excluding overtime and employer super) are $2,083.70 per week, or about $108,352 per year. This is the average for full-time employees and gives you a sense of where typical salaries land.
Using a salary cal, you can see how your own salary compares. For example:
- On the minimum wage ($52,255), your estimated annual tax is about $5,108 (after LITO) and Medicare is $1,045, leaving take-home around $46,102, or about $887 per week.
- On the full-time average ($108,352), your tax is about $23,026, Medicare is $2,167, leaving take-home around $83,159, or about $1,599 per week.
These are rough estimates – the actual amount depends on your exact circumstances, including any HELP/HECS debt, Medicare levy surcharge, or salary sacrifice arrangements.
Using the salary cal for your own numbers
To get a personalised estimate, you can use the Take-home pay guide on this site, which walks you through the calculation step by step. You can also check the Tax and Medicare page for the latest rates and thresholds. Remember that the salary cal is an estimate only – your employer’s payroll system will use the ATO’s tax tables to withhold the exact amount each pay period.
If you’re comparing job offers, always look at the total remuneration package, including super and any salary packaging options. The salary cal gives you the after-tax figure, which is what you’ll actually spend or save.
Final thoughts
A salary cal is a practical tool for anyone in the Australian job market. By understanding how tax and Medicare affect your gross pay, you can make informed decisions about job changes, negotiate salaries, and plan your budget. Keep in mind that the national minimum wage and full-time ordinary time earnings are useful reference points, but your personal take-home will depend on your specific income and deductions.
Questions
How do I calculate my take-home pay using a salary cal?
Start with your annual salary (if quoted as plus super, exclude the 12% super guarantee). Subtract the tax-free threshold of $18,200, then apply the 2026–27 resident tax rates: 15c per dollar from $18,201 to $45,000, 30c per dollar from $45,001 to $135,000, 37c per dollar from $135,001 to $190,000, and 45c per dollar above $190,000. Then add the Medicare levy of 2% of your taxable income (unless you qualify for a reduction based on the $28,011 and $35,013 thresholds). Finally, apply the Low Income Tax Offset if eligible. The result is your estimated annual tax and Medicare, which you subtract from your gross salary to get take-home pay.
What are the Medicare levy thresholds for single people?
The latest published single-person Medicare thresholds are $28,011 (lower) and $35,013 (upper). If your taxable income is below $28,011, you pay no Medicare levy. Between $28,011 and $35,013, the levy is reduced by 10c for each dollar over the lower threshold. Above $35,013, you pay the full 2% Medicare levy on your taxable income.
How does the national minimum wage compare to full-time ordinary time earnings?
The national minimum wage is $26.44 per hour or $1,004.90 per week, which equates to about $52,255 per year (based on 38 hours per week, 52 weeks). In contrast, the ABS reports full-time adult ordinary time earnings at $2,083.70 per week, or about $108,352 per year. Your take-home pay using a salary cal will vary depending on where your salary sits between these benchmarks.