Your in hand salary calculator: how tax brackets, Medicare levy and super change your fortnight

Your in hand salary calculator: what changes your fortnight

When you look at your payslip, the amount that lands in your bank account – your take-home pay – is not simply your hourly rate times hours worked. Several deductions and offsets change what you actually receive each fortnight. This guide acts as your in hand salary calculator, breaking down the three main factors: tax brackets, the Medicare levy, and superannuation.

How tax brackets affect your fortnight

Australia uses a progressive tax system. For the 2026–27 tax year, the Australian Taxation Office sets these resident tax rates:

• Up to $18,200: no tax
• $18,201 to $45,000: 15c for each dollar over $18,200
• $45,001 to $135,000: $4,020 plus 30c for each dollar over $45,000
• $135,001 to $190,000: $31,020 plus 37c for each dollar over $135,000
• Over $190,000: $51,370 plus 45c for each dollar over $190,000

Your employer withholds tax from each pay based on these brackets. The Low Income Tax Offset (LITO) can reduce the tax you pay. For 2026–27, LITO gives a maximum of $700 at a taxable income of $37,500, then reduces by 5c per dollar until $45,000. From $45,001 to $66,667, the offset is $325 minus 1.5c per dollar over $45,000. LITO can only reduce your tax to zero – it cannot create a refund by itself.

For example, if you earn the national minimum wage – $26.44 per hour, $1,004.90 per week, or $52,255 per year – your tax before offsets would be about $5,108. After LITO of around $216, your tax falls to about $4,892. That is before the Medicare levy.

The Medicare levy and its thresholds

The Medicare levy is an additional 2% on your taxable income, used to fund Australia’s public health system. The latest published single-person thresholds are $28,011 (lower) and $35,013 (upper). If your income is below $28,011, you pay no levy. Between $28,011 and $35,013, you pay 10c per dollar over the lower threshold. Above $35,013, you pay the full 2%.

For a full-time worker on the minimum wage ($52,255), the full 2% applies, adding about $1,045 to your annual tax bill. That brings total tax and Medicare to roughly $5,937. Your annual take-home would be around $46,318, or about $1,781 per fortnight. Remember, this is an estimate – your actual withholding may vary due to rounding and other factors.

For lower incomes, the shading rule means you pay less or nothing. If you earn between $28,011 and $35,013, your Medicare levy is only 10c per dollar over $28,011, not the full 2%.

Superannuation: what it means for your take-home

Superannuation is money your employer pays into a super fund for your retirement. From 1 July 2026, the compulsory rate is 12% of your ordinary time earnings, up to a maximum contribution base of $270,830 per year.

Crucially, for most employees, super is paid on top of your salary. Job advertisements often say “$80,000 plus super” – meaning the $80,000 is your base salary, and the employer adds 12% ($9,600) to your super account. In that case, super does not reduce your take-home pay. Your bank account receives the full $80,000 (minus tax and Medicare).

However, if your contract states a total package “inclusive of super”, then the super component is deducted from your gross pay before you receive the remainder. Always check your employment agreement to know which arrangement applies.

Putting it all together: your in hand salary calculator

To estimate your fortnightly take-home, start with your gross annual salary. Subtract the income tax (using the brackets and LITO) and the Medicare levy (using the thresholds). Then divide by 26 fortnights. Remember that super is usually not deducted, so it does not affect the number in your bank account.

Use our Take-home pay guide for more examples, and see the Tax and Medicare page for detailed rates. If you earn at or near the minimum wage, check the Minimum wage page for exact figures.

This guide is a resident estimate only. It excludes HELP/HECS repayments, the Medicare levy surcharge, salary sacrifice, and payroll tax-table rounding. It is not a tax assessment. For a personalised calculation, use the ATO’s online tools or speak to a tax professional.