What's the salary after tax? How brackets, Medicare levy and super change your fortnight

What's the salary you actually take home?

When you see a job ad or a salary offer, the figure is usually your gross annual pay – before tax, the Medicare levy, and any other deductions. What lands in your bank account each fortnight is your take-home pay, and it can look quite different once the Australian Taxation Office applies the brackets.

This guide explains how the 2026–27 tax rates, the Medicare levy, and superannuation change your fortnightly amount. Whether you're on the minimum wage or earning above the average, understanding these components helps you plan your budget.

The 2026–27 tax brackets at a glance

The Australian Taxation Office publishes resident tax rates each year. For 2026–27, the rates are:

• $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 Low Income Tax Offset (LITO) can reduce your tax if your taxable income is below $66,667. It gives a maximum offset of $700 for incomes up to $37,500, then phases out.

How the Medicare levy changes your take-home

The Medicare levy is an additional 2% on your taxable income, used to fund Australia's public health system. For most full-time employees, it's a straight 2% deduction. However, if your income is low, you may pay less or nothing.

The latest single-person thresholds are $28,011 (lower) and $35,013 (upper). If you earn below $28,011, you pay no levy. Between $28,011 and $35,013, you pay 10c for each dollar over the lower threshold. Above $35,013, you pay the full 2%. These thresholds are not a new cut-off for 2026–27; they are the current published figures from the ATO.

For example, if your taxable income is $50,000, your Medicare levy is $1,000 (2% of $50,000). That's about $38.46 per fortnight.

Superannuation: not a deduction from your pay

Super is your employer's contribution to your retirement savings. From 1 July 2026, the Super Guarantee rate is 12% of your ordinary time earnings, up to a maximum contribution base of $270,830 per year.

Crucially, if your salary is quoted as 'plus super', the super amount is on top of your cash salary. Your take-home pay is calculated on the cash salary only. If the salary is quoted 'including super', then the super contribution comes out of that total, reducing your cash pay. Always check which way your employer quotes.

Putting it together: fortnightly take-home examples

Let's look at two scenarios using the 2026–27 rates and the 2% Medicare levy. These are estimates only – they exclude HELP/HECS, the Medicare levy surcharge, salary sacrifice, and payroll rounding.

Example 1: National minimum wage

The Fair Work Ombudsman sets the national minimum wage at $26.44 per hour or $1,004.90 per week. For a full-time worker (38 hours per week, 52 weeks), that's an annual salary of $52,255 (rounded).

• Tax on $52,255: $4,020 plus 30c per $1 over $45,000 = $4,020 + $2,176.50 = $6,196.50
• LITO: $325 minus 1.5c per $1 over $45,000 = $325 – $108.83 = $216.17 (approx.)
• Net tax after LITO: $6,196.50 – $216.17 = $5,980.33
• Medicare levy: 2% of $52,255 = $1,045.10
• Total deductions: $5,980.33 + $1,045.10 = $7,025.43
• Annual take-home: $52,255 – $7,025.43 = $45,229.57
• Fortnightly take-home: $45,229.57 ÷ 26 = $1,739.60 (approx.)

Example 2: Full-time adult average ordinary time earnings

The ABS reports full-time adult ordinary time earnings at $2,083.70 per week, annualised to $108,352 (rounded).

• Tax on $108,352: $31,020 plus 37c per $1 over $135,000? No, $108,352 is below $135,000, so use the 30c bracket: $4,020 plus 30c per $1 over $45,000 = $4,020 + $19,005.60 = $23,025.60
• LITO: $325 minus 1.5c per $1 over $45,000 = $325 – $950.28 = negative, so no LITO.
• Medicare levy: 2% of $108,352 = $2,167.04
• Total deductions: $23,025.60 + $2,167.04 = $25,192.64
• Annual take-home: $108,352 – $25,192.64 = $83,159.36
• Fortnightly take-home: $83,159.36 ÷ 26 = $3,198.44 (approx.)

These examples show how the progressive tax system and Medicare levy reduce your gross salary. The higher your income, the larger the proportion taken in tax, though the Medicare levy stays at 2%.

What changes your fortnight the most?

Three factors have the biggest impact on your take-home pay:

1. Your tax bracket – moving from the 30c to 37c bracket at $135,000 increases the marginal tax rate significantly.
2. The Medicare levy – a flat 2% that applies to most full-time workers.
3. Superannuation – whether it's quoted as plus super or included in your package changes your cash flow.

If you're negotiating a salary, ask for the 'plus super' figure so you know your cash base. Use the Take-home pay calculator to see your exact fortnightly amount.

Remember: this is an estimate

Your actual take-home pay may differ due to:

• HELP/HECS repayment obligations
• Medicare levy surcharge (if you don't have appropriate private hospital cover and earn over a threshold)
• Salary packaging or sacrifice arrangements
• Payroll tax-table rounding by your employer

Always check your payslip and consult a tax professional for your specific situation.