Your take-home pay on the au minimum wage: after tax and Medicare

How to work out what reaches your bank account

When you earn the au minimum wage in Australia, your employer pays you $26.44 an hour or $1,004.90 a week. But the amount that lands in your bank account is less because the Australian Tax Office deducts income tax and the Medicare levy. This guide explains how a resident employee can estimate their take-home pay using the 2026–27 rates.

Income tax brackets for residents

The Australian Tax Office applies a progressive tax scale. For the 2026–27 year, the rates are:

• Up to $18,200: nil
• $18,201 to $45,000: 15 cents for each dollar over $18,200
• $45,001 to $135,000: $4,020 plus 30 cents for each dollar over $45,000
• $135,001 to $190,000: $31,020 plus 37 cents for each dollar over $135,000
• Over $190,000: $51,370 plus 45 cents for each dollar over $190,000

The Low Income Tax Offset (LITO)

LITO reduces your tax. The maximum is $700 at taxable income up to $37,500. It then reduces by 5 cents per dollar until $45,000, then by 1.5 cents per dollar until $66,667. LITO can only reduce your tax to zero, not create a refund.

Medicare levy

You pay 2% of your taxable income as the Medicare levy, unless you are below the thresholds. For a single person, the latest published thresholds are $28,011 (lower) and $35,013 (upper). If your income is below $28,011 you pay nothing. Between $28,011 and $35,013 you pay 10 cents per dollar over the lower threshold. Above $35,013 you pay the full 2%.

Example: full-time worker on the au minimum wage

A full-time employee works 38 hours per week, 52 weeks per year. At $26.44 per hour, the annual salary is $52,255 (rounded from 38 × 52 × 26.44 = 52,255.04). This is the taxable income.

Step 1 – Income tax

• First $18,200: nil
• Next $26,800 (from $18,201 to $45,000): 15c × $26,800 = $4,020
• Remaining $7,255 (from $45,001 to $52,255): 30c × $7,255 = $2,176.50
• Gross tax before offsets: $4,020 + $2,176.50 = $6,196.50

Step 2 – LITO

Taxable income $52,255 is above $45,000 so LITO is $325 minus 1.5c per dollar over $45,000. Excess = $52,255 – $45,000 = $7,255. Reduction = 1.5c × $7,255 = $108.825. LITO = $325 – $108.825 = $216.175 (rounded to $216). So tax after LITO = $6,196.50 – $216 = $5,980.50.

Step 3 – Medicare levy

Taxable income $52,255 is above $35,013, so full 2% applies: $52,255 × 0.02 = $1,045.10.

Step 4 – Total deductions

$5,980.50 (tax) + $1,045.10 (Medicare) = $7,025.60.

Step 5 – Take-home pay

$52,255 – $7,025.60 = $45,229.40 per year. That is about $3,769 per month or $869 per week (assuming 52 weeks).

Note: This is a resident estimate only. It excludes HELP/HECS, the Medicare levy surcharge, salary sacrifice, and payroll tax-table rounding. It is not a tax assessment.

Super is not deducted from your take-home

Your employer must pay 12% super on top of your salary from 1 July 2026. If a job ad says “$52,255 plus super”, that $52,255 is your before-tax salary and super is extra. Super goes into your super fund, not your bank account. For more on how super works, see our Super guide.

How to get a personalised estimate

Every person’s situation is different. You may have other income, deductions, or offsets. Use our Clearance tool to enter your own numbers. You can also check the Take-home pay page for more examples.