How a salary package calculator reveals your true take-home pay

Why take-home pay matters more than the headline salary

When you receive a job offer, the first number you see is the annual salary. But what matters is the amount that lands in your bank account after tax and the Medicare levy. A salary package calculator helps you cut through the confusion and compare offers on an equal footing.

What a salary package calculator does

A salary package calculator takes your gross pay and applies the current tax rates, the Medicare levy, and any tax offsets you may be entitled to. The result is your estimated take-home pay. The Australian Taxation Office provides a tax withheld calculator that employers use, and you can also use it to see what your net pay would be. The Moneysmart income tax calculator is another reliable tool that shows your income after tax and the Medicare levy.

Key components that affect your take-home pay

Income tax

For the 2026–27 tax year, Australian residents pay no tax on the first $18,200. After that, the rates are:

• 15c for each dollar between $18,201 and $45,000
• 30c for each dollar between $45,001 and $135,000
• 37c for each dollar between $135,001 and $190,000
• 45c for each dollar over $190,000

A Low Income Tax Offset (LITO) of up to $700 can reduce your tax, but it cannot reduce your tax below zero.

Medicare levy

The Medicare levy is 2% of your taxable income for most people. If you are single and your taxable income is $28,011 or less, you pay no Medicare levy. Between $28,011 and $35,013, the levy is reduced on a sliding scale. Above $35,013, you pay the full 2%. These are the latest published single-person thresholds.

Superannuation

Employer super contributions are 12% of your ordinary time earnings from 1 July 2026, up to a maximum contribution base of $270,830. Super is not deducted from your take-home pay if the job advertisement states the salary is 'plus super'. Always check whether the quoted figure includes super or not.

Using benchmarks to evaluate an offer

To see how an offer compares to the market, refer to official benchmarks:

• The national minimum wage is $26.44 per hour or $1,004.90 per week, as set by Fair Work.
• The average weekly total earnings for all employees is $1,579.20, according to the ABS Average Weekly Earnings (May 2026, seasonally adjusted).
• Full-time adult ordinary time earnings average $2,083.70 per week.

These figures give you a reference point, but your personal take-home pay depends on your specific salary and circumstances.

How to compare job offers step by step

1. Get the gross salary – note whether it is plus super or inclusive of super.
2. Use a salary package calculator – enter the gross amount and select your residency status.
3. Check the after-tax result – this is the amount you will receive each pay period (weekly, fortnightly, or monthly).
4. Factor in other benefits – such as salary packaging options, which can reduce your taxable income (see our guide on Salary packaging).
5. Consider the total package – including super, leave entitlements, and any bonuses.

Common mistakes to avoid

• Ignoring the Medicare levy – it applies to most full-time salaries.
• Assuming the advertised salary is take-home pay.
• Forgetting that super is separate if the ad says 'plus super'.
• Using a calculator that does not include the latest tax rates or Medicare thresholds.

Final thoughts

A salary package calculator is an essential tool for anyone comparing job offers. It turns a confusing mix of tax rates and levies into a clear number: your take-home pay. Use it alongside official sources like the ATO and Fair Work to make informed decisions. For more guidance, visit our Take-home pay and Tax and Medicare pages.

Disclaimer: This is a resident estimate only. It excludes HELP/HECS repayments, the Medicare levy surcharge, salary sacrifice arrangements, and payroll tax-table rounding. It is not a tax assessment.