Net Pay Calculator Australia 2026-27
Use this net pay calculator Australia to find your exact take-home pay after income tax, the Medicare levy and the low income tax offset — updated for the 2026–27 financial year.
Last updated: July 2026 · Income Tax Rates Act 1986 · ITAA 1997 · Medicare Levy Act 1986 · FY 2026–27
Got your number? Two things worth checking next
→ The tax brackets behind this result — see exactly which rates your salary crosses. → The 12% your employer adds on top — how your super guarantee builds while you work.What is Net Pay in Australia?
Net pay — your take-home pay — is what actually lands in your bank account every payday. For most Australian employees only two amounts come out of the salary you agreed to: income tax, withheld by your employer under PAYG (pay as you go) withholding, and the Medicare levy of 2% of taxable income. There are no separate employee social security contributions the way many countries deduct pension or health insurance from workers’ wages.
Your superannuation is the big exception people get wrong: the 12% super guarantee is paid by your employer on top of your salary, not taken out of it. A job advertised at $85,000 “plus super” really costs your employer $95,200 — and the $10,200 goes into your super fund without ever reducing your payslip. The calculator shows this amount as a green “+” line so you can see what you’re accumulating. (If your contract is “including super”, the sums work differently — divide your package by 1.12 to find your base salary first.)
This calculator applies the 2026–27 resident tax brackets — including the new 15% rate on income between $18,201 and $45,000 that took effect on 1 July 2026 — plus the low income tax offset (LITO), which quietly wipes up to $700 off the tax bill of anyone earning under $66,667. If you have a HELP/HECS debt, your employer also withholds compulsory study-loan repayments; those thresholds are published by the ATO and are not part of this calculator, so your actual take-home will be lower than shown.
How Your Take-Home Pay is Computed
| Component | Rate | How it works |
|---|---|---|
| Income tax | 0–45% | Marginal brackets — each rate hits only the slice inside its bracket |
| Low income tax offset | up to $700 | Automatic; full $700 under $37,500, gone at $66,667 |
| Medicare levy | 2% | Nil under $27,222, shaded in to $34,027, then 2% of the lot |
| Super guarantee | +12% | Paid by your employer on top — never deducted from your pay |
Medicare levy reduction thresholds ($27,222 / $34,027) are the amounts currently legislated in the Medicare Levy Act 1986; parliament typically indexes them retrospectively in the following budget. The levy surcharge for high earners without private hospital cover is not included.
Income Tax Brackets 2026–27
Australia taxes residents on a marginal scale: crossing into a higher bracket never reduces your take-home pay, because the higher rate applies only to the dollars above the threshold. These are the resident rates for 2026–27 from the Income Tax Rates Act 1986 as in force — the bottom rate dropped from 16% to 15% on 1 July 2026 and is legislated to fall again to 14% from 1 July 2027.
| Taxable Income | Tax on This Income |
|---|---|
| 0 – $18,200 | Nil |
| $18,201 – $45,000 | 15c for each $1 over $18,200 |
| $45,001 – $135,000 | $4,020 + 30c for each $1 over $45,000 |
| $135,001 – $190,000 | $31,020 + 37c for each $1 over $135,000 |
| $190,001 and over | $51,370 + 45c for each $1 over $190,000 |
Excludes the 2% Medicare levy and any HELP/HECS repayments. Foreign residents and working holiday makers use different scales.
Frequently Asked Questions
Why is my actual fortnightly pay slightly different from this?
Your employer withholds tax each payday using the ATO’s PAYG withholding schedules, which are built to slightly over-collect for most people. This calculator shows your true annual position divided by 26 — the withholding difference comes back to you (or is settled) when you lodge your tax return. Bonuses, salary sacrifice and deductions will also move the real figure.
Does this include my HELP/HECS repayment?
No. If you have a study loan, your employer withholds compulsory repayments once your income passes the repayment threshold — under the marginal system that started 1 July 2026, only the income above the threshold attracts a repayment. Those thresholds are published by the ATO and aren’t covered here, so treat this result as your take-home before loan repayments.
Is superannuation deducted from my pay?
Not unless you choose to. The 12% super guarantee is your employer’s obligation, paid on top of your wage. The only super that reduces your payslip is voluntary salary sacrifice you set up yourself — which lowers your taxable income and can cut your tax bill, since those contributions are taxed at 15% in the fund instead of your marginal rate.
What is the low income tax offset?
LITO is an automatic tax reduction of up to $700 for anyone with taxable income under $66,667. You don’t apply for it — the ATO applies it when your return is assessed. It’s why someone on $25,000 pays almost no tax: the offset wipes out most of the 15% bracket’s bill. It can reduce your tax to zero but never generates a refund by itself.
📋 Rates verified — Official sources: Income Tax Rates Act 1986 · ITAA 1997 s 61-115 (LITO) · Medicare Levy Act 1986 · Moneysmart (ASIC)
⚠️ 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.
