Take-Home Pay Australia
Everything you need to understand your take-home pay in Australia — what actually lands in your bank account after income tax and the Medicare levy, explained in plain English.
Last updated: July 2026 · Income Tax Rates Act 1986 · Moneysmart (ASIC) · FY 2026–27
What is Take-Home Pay in Australia?
Take-home pay — your “net pay” — is what’s left of your salary after your employer withholds tax on each payday. For most Australian workers only two things come out: income tax, worked out on a sliding scale that starts at zero on your first $18,200 and tops out at 45%, and the Medicare levy of 2% of taxable income. Unlike many countries, your superannuation isn’t a deduction — the 12% super guarantee is paid by your employer on top of your wage, so it never reduces the salary you agreed to.
From 1 July 2026 the rate on the bottom bracket dropped from 16% to 15%, so every worker earning over $45,000 pays $268 less tax in 2026–27 — and the same rate falls again to 14% from 1 July 2027. If you have a HELP/HECS debt, your employer also withholds compulsory loan repayments on top of tax; those thresholds are published by the ATO and are not covered by our calculator.
Take-Home Pay 2026–27 Key Rates
| Taxable income | Rate on that part |
|---|---|
| 0 – $18,200 (tax-free threshold) | Nil |
| $18,201 – $45,000 | 15% |
| $45,001 – $135,000 | 30% |
| $135,001 – $190,000 | 37% |
| $190,001 and over | 45% |
| Medicare levy | 2% of taxable income |
These are the resident rates for the 2026–27 financial year (from 1 July 2026), taken from the Income Tax Rates Act 1986 as currently in force. Each rate applies only to the slice of income inside its bracket — moving into a higher bracket never reduces what you keep. Your employer withholds an estimate of this tax every payday (PAYG withholding) and the exact figure is settled when you lodge your tax return.
What You’ll Find in This Section
- Net Pay Calculator: enter your salary and get your exact take-home pay after income tax and the Medicare levy
- Tax Brackets Table: the full 2026–27 resident rates with worked examples for real salaries
- Complete guide: how income tax, the Medicare levy and your payslip actually work, step by step
In this section:
📋 Rates verified — Official sources: Income Tax Rates Act 1986 (Federal Register of Legislation) · Moneysmart (ASIC) — Income tax
⚠️ This is general information, not financial, tax or legal advice. KnowMyGovt is an independent service with no affiliation with or endorsement by the ATO, the Fair Work Commission or the Australian Government, and is not responsible for decisions you make based on it.
