Take-Home Pay Calculator Australia
Enter your salary and see your exact take-home pay — income tax, Medicare levy, HECS/HELP repayment and LITO all calculated using official ATO formulas.
Your details
2026–27 Australian income tax brackets
Marginal rates for Australian tax residents, effective 1 July 2026.
| Taxable income | Tax rate | 2025–26 rate (for comparison) |
|---|---|---|
| $0 – $18,200 | 0% | 0% |
| $18,201 – $45,000 | 15% | 16% |
| $45,001 – $135,000 | 30% | 30% |
| $135,001 – $190,000 | 37% | 37% |
| $190,001 and over | 45% | 45% |
How take-home pay is calculated in Australia
Take-home pay is what actually lands in your bank account after all compulsory deductions — it's your gross salary minus income tax, the Medicare levy, and (if applicable) your HECS/HELP repayment. Superannuation is not deducted from take-home pay — it's paid separately by your employer on top of your salary. For the full step-by-step formula with worked examples, see How to Calculate Your Take-Home Pay in Australia.
Worked example — $80,000 salary, no HECS
| Item | Amount |
|---|---|
| Gross salary | $80,000.00 |
| Income tax (2026–27 brackets) | $14,520.00 |
| LITO offset | $0.00 (fully phased out above $66,667) |
| Medicare levy (2%) | $1,600.00 |
| Take-home pay | $63,880.00 |
That's an effective tax rate of 20.15% — meaning roughly 80 cents of every dollar earned ends up as take-home pay at this income level.
The Low Income Tax Offset (LITO)
LITO reduces the tax you pay, not your taxable income — it's applied automatically after your marginal tax is calculated. The maximum offset is $700, applying in full up to $37,500 of taxable income, then phasing out in two stages:
- $37,501–$45,000: reduces by 5 cents for every dollar above $37,500
- $45,001–$66,667: reduces further by 1.5 cents for every dollar above $45,000, reaching zero at $66,667
Above $66,667 of taxable income, LITO provides no benefit at all — it has fully phased out.
The Medicare levy
Most Australian tax residents pay a 2% Medicare levy on their taxable income, in addition to income tax. There's a reduced rate or full exemption for lower income earners, and the exact thresholds are indexed annually:
- 2026–27 (current): no levy below $28,011, a phased 10% shade-in rate between $28,011 and $35,014, and the full 2% above that.
- 2025–26 (previous year): no levy below $27,222, a phased 10% shade-in rate between $27,222 and $34,027, and the full 2% above that.
How HECS/HELP repayments affect take-home pay
If you have a HECS/HELP debt and your repayment income exceeds the compulsory repayment threshold, an additional amount is withheld from every pay and included in your compulsory repayment when you lodge your tax return. From the 2025–26 income year, this uses a marginal system — you only pay the higher rate on income above each threshold, similar to how income tax brackets work.
| Repayment income | Repayment rate |
|---|---|
| $0 – $69,528 | Nil |
| $69,529 – $129,717 | 15c for every $1 over $69,528 |
| $129,718 – $186,050 | $9,028 plus 17c for every $1 over $129,717 |
| $186,051 and over | 10% of total repayment income |
For example, someone with repayment income of $86,380 pays $2,527.80 towards their HECS/HELP debt for 2026–27 — calculated as 15% of the $16,852 above the $69,528 threshold.
What isn't included in this calculator
This calculator provides a close estimate for the most common scenario — an Australian tax resident with no other income, deductions, or complications. It does not currently model:
- Medicare Levy Surcharge — an additional 1–1.5% for higher earners without private hospital cover
- Salary sacrifice — see the Salary Sacrifice Calculator to model super contributions and their tax impact
- Multiple income sources — HECS/HELP withholding from a single employer doesn't account for combined income across multiple jobs
- Work-related deductions — actual tax payable at year-end may be lower if you claim eligible deductions
Frequently asked questions
Common questions about take-home pay in Australia.
How do I calculate my take-home pay in Australia?
Take-home pay = gross salary − income tax (after LITO) − Medicare levy − HECS/HELP repayment (if applicable). Income tax uses marginal brackets, the Medicare levy is 2% for most people, and HECS/HELP uses a separate marginal schedule starting at $69,528 for 2026–27.
What is the take-home pay on $80,000 in Australia?
Approximately $63,880 for 2026–27, with no HECS/HELP debt. That's $80,000 minus $14,520 income tax minus $1,600 Medicare levy — LITO doesn't apply at this income as it fully phases out by $66,667.
Does HECS or HELP debt reduce my take-home pay?
Yes, once your repayment income exceeds $69,528 (2026–27). The repayment is calculated on a marginal basis: 15 cents per dollar between $69,528 and $129,717, then 17 cents, then 10% of total income at the highest tier.
What is the Low Income Tax Offset (LITO)?
A tax offset of up to $700 that reduces tax payable for lower income earners. Full $700 applies up to $37,500, then phases out at 5c/$1 to $45,000, then 1.5c/$1 to $66,667 where it reaches zero. Applied automatically — you don't need to claim it.
How much tax do I pay on my salary in Australia?
2026–27 rates: 0% up to $18,200, 15% from $18,201–$45,000, 30% from $45,001–$135,000, 37% from $135,001–$190,000, 45% above $190,000. These are marginal rates — each rate only applies to income within that bracket. Plus a 2% Medicare levy on top for most residents.
What is the difference between gross pay and take-home pay?
Gross pay is your total salary before deductions. Take-home pay is what lands in your account after income tax, Medicare levy, and HECS/HELP repayment. Superannuation is separate — paid by your employer on top of your gross salary, not deducted from take-home pay.