What is the minimum wage take-home pay after tax and Medicare in Australia?
For a full-time worker on the national minimum wage of $26.44 per hour, the annual take-home pay is approximately $45,230 after tax and Medicare.
What is the minimum wage take-home pay?
If you are earning the national minimum wage in Australia, you might wonder what is the minimum wage after tax and the Medicare levy. The Fair Work Ombudsman sets the rate at $26.44 per hour, which works out to $1,004.90 per week for a full-time employee working 38 hours. Over 52 weeks, that is an annual salary of $52,255.
How much goes to tax and Medicare?
Using the 2026–27 resident tax rates, your income tax is calculated as follows:
- First $18,200: nil
- Next $26,800 (up to $45,000): taxed at 15 cents per dollar = $4,020
- Remaining $7,255 (from $45,001 to $52,255): taxed at 30 cents per dollar = $2,176.50
- Total tax before offsets: $6,196.50
The Low Income Tax Offset (LITO) reduces your tax. At $52,255, the LITO is $325 minus 1.5 cents per dollar over $45,000, which gives $216.18. So your tax after LITO is $5,980.32.
The Medicare levy is 2% of your taxable income, which is $1,045.10. Combined, you pay $7,025.42 in tax and Medicare, leaving a take-home pay of $45,229.58 per year (about $869.80 per week or $1,739.60 per fortnight).
How does this compare to average earnings?
The After-tax salary site provides benchmarks. The national minimum wage annual figure of $52,255 is well below the full-time adult ordinary time earnings of $108,352 (from ABS Average Weekly Earnings, May 2026). Your take-home pay of around $45,230 reflects the lower end of the income scale. For a detailed breakdown of your own salary, use the Take-home pay guide.
Medicare thresholds and your situation
The Australian Taxation Office publishes Medicare levy thresholds for singles: $28,011 (lower) and $35,013 (upper). Because the minimum wage is above the upper threshold, you pay the full 2% Medicare levy. If you earn less than $28,011, you would pay no Medicare levy. The phase-in range applies between these amounts.
Superannuation is extra
Remember, your employer must also pay superannuation guarantee of 12% on your ordinary earnings from 1 July 2026. That is an additional $6,270.60 per year paid into your super fund, but it does not come out of your take-home pay. Your total remuneration package is higher than the base salary.
For more information, see the Minimum wage topic page or the Tax and Medicare guide.
Important notes
This estimate is for a resident taxpayer with no HELP/HECS debt, no Medicare levy surcharge, and no salary sacrifice. It is not a tax assessment. Always check with the Australian Taxation Office or a qualified adviser for your personal circumstances.
Questions
How is the minimum wage take-home pay calculated?
The national minimum wage is $26.44 per hour, $1,004.90 per week, or $52,255 per year (38 hours per week, 52 weeks). After applying the 2026–27 tax brackets, the Low Income Tax Offset (LITO), and the 2% Medicare levy, the estimated annual take-home pay is about $45,230. This excludes superannuation, which is paid on top by your employer.
What are the Medicare levy thresholds for singles?
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 phased in at 10 cents per dollar over the lower threshold. Above $35,013, you pay the full 2%.
Does the minimum wage include superannuation?
No. The minimum wage rate quoted by Fair Work is base pay before super. From 1 July 2026, the super guarantee is 12% of your ordinary earnings, paid by your employer on top of your salary. So your total employment cost is higher, but super does not reduce your take-home pay.