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

How a salary tax calculator shows what changes your fortnight: tax brackets, Medicare levy and super

When you look at a job ad, the figure you see is usually the annual salary before tax. What actually lands in your bank account each fortnight is your take-home pay after income tax and the Medicare levy. A salary tax calculator, like the one provided by the Australian Taxation Office, helps you estimate that amount. It applies the current tax brackets, the Medicare levy, and any study or training loan repayments if applicable.

The 2026–27 tax brackets for residents

For the 2026–27, the Australian Taxation Office shows these resident resident tax rates:

• $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%. The Medicare levy is calculated separately. For most full-time employees, the levy applies at the full 2% rate. However, if your taxable income is below the latest published single-person thresholds of $28,011 and $35,013, you may be eligible for a reduction or exemption. The ATO's can help you work out the exact amount.

How superannuation affects the calculation

Superannuation is not deducted from your take-home pay. Since 1 July 2026, the super guarantee rate is 12%. Your employer pays this on top of your salary, up to a maximum contribution base of $270,830. When you use a salary tax calculator, you enter your gross salary excluding super. The calculator then estimates the tax and Medicare levy to give you net pay. Remember, job ads often state "plus super, meaning the super is additional to the advertised salary.

Using the ATO's tax withheld calculator

The ATO's Tax withheld calculator is designed for employers to work out how much tax to withhold from payments to employees. But you can also use it to estimate your own take-home pay. It takes into account your pay period (weekly, fortnightly, monthly), your residency status, whether you claim the tax-free threshold, and any study or training loan debts. The calculator includes the changes to study and training loan repayment thresholds from 1 July 2025.

For a quick estimate, you can also use the Moneysmart income tax calculator. It shows your income tax payable, Medicare levy, and your marginal tax rate. Note that it does not include tax offsets or rebates.

Example: minimum wage and average earnings

Fair Work sets the national minimum wage at $26.44 per hour, which is $1,004.90 per week. For a full-time employee working 38 hours per week, that's an annual salary of $52,255. Using the 2026–27 tax rates, the tax on that income is $4,020 plus 30c per dollar over $45,000, which is $4,020 + 30% of ($52,255 - $45,000) = $4,020 + $2,176.50 = $6,196.50. Plus Medicare levy 2% = $1,045.10. Total deductions $7,241.60. Take-home pay $45,013.40 per year, or about $1,731.28 per fortnight. This is an estimate; actual withholding may vary due to rounding and other factors.

What changes your fortnight amount

Three main factors affect your fortnightly take-home pay: the tax bracket you fall into, the Medicare levy, and any super contributions (though super is not deducted from pay). If you earn more, you move into a higher bracket, and the marginal rate increases. The Medicare levy is a flat 2% for most, but if your income is below the thresholds, you may pay less. Also, if you have a HELP debt, additional withholding applies.

Using a salary tax calculator regularly helps you plan your budget and understand the impact of a pay rise or change in circumstances.

For more detailed information, see Take-home pay and Tax and Medicare.