Your take-home pay on the minimum wage in Australia
For the national minimum wage of $26.44 per hour, the annual take-home pay after income tax and the Medicare levy is approximately $45,200.
Your take-home pay on the minimum wage in Australia
If you earn the national minimum wage in Australia, you receive $26.44 an hour, $1,004.90 a week, or $52,255 a year (based on a 38-hour week, 52 weeks). But what actually lands in your bank account after the Australian Tax Office takes its share? This guide walks you through the deductions and shows how your take-home compares to the average full-time worker.
How much tax and Medicare levy you pay
For the 2026–27 tax year, the Australian Tax Office applies these resident tax rates to your taxable income. On $52,255, you pay:
- First $18,200 tax-free, then 15 cents per dollar up to $45,000, then 30 cents per dollar on the next $7,255. That gives a tax bill of $6,196. The Low Income Tax Offset (LITO) reduces that by up to $700, but at $52,255 you get a reduced offset of about $216, bringing your tax to $5,980. Then the Medicare levy adds 2% of your taxable income – $1,045. Total tax and Medicare: $7,025. Your take-home pay is $52,255 minus $7,025 = $45,230.
How the minimum wage compares to full-time ordinary time earnings
The full-time adult ordinary time earnings (excluding overtime and employer super) are $2,083.70 per week, or $108,352 per year. That is more than double the minimum wage. Your take-home on the minimum wage is about 42% of the full-time ordinary time gross. After tax, the full-time ordinary time earner takes home about $78,000 (estimate), so the minimum wage take-home is about 58% of that.
The role of superannuation
From 1 July 2026, the super guarantee rate is 12% on your ordinary earnings up to $270,270. Your employer must pay this on top of your minimum wage salary. Super is not deducted from your take-home pay – it goes into your super fund. So your take-home is based on the $52,255 salary, not including super. For more on super, see our Super guide.
Medicare thresholds
The Medicare levy applies at 2% of your taxable income. If your income is below $28,011 (single), you pay no levy. Between $28,011 and $35,013, you pay a reduced rate. At $52,255, you pay the full 2%. These thresholds are the latest published single-person figures.
Using the take-home calculator
To see your own take-home pay, use our Take-home pay tool. It includes tax, Medicare, and LITO for the 2026–27 year. Remember, this is an estimate only and does not include HELP/HECS, the Medicare levy surcharge, or salary sacrifice.
Key points
- Minimum wage: $26.44/hr, $1,004.90/wk, $52,255/yr
- Take-home after tax and Medicare: about $45,200/yr
- Full-time ordinary time earnings: $108,352/yr (gross)
- Super is paid on top, not deducted from your pay
For more details on the minimum wage, see our Minimum wage page. For a full breakdown of tax and Medicare, see Tax and Medicare.
Questions
What is the minimum wage in Australia?
The national minimum wage is $26.44 per hour, which equates to $1,004.90 per week or $52,255 per year (based on a 38-hour week, 52 weeks). This rate is set by Fair Work Ombudsman and applies from 1 July 2026.
How much take-home pay can I expect from the minimum wage?
After income tax and the Medicare levy, your take-home pay from the minimum wage is around $45,200 per year. This estimate includes the Low Income Tax Offset (LITO) of about $216. The exact amount that reaches your bank account depends on your residency and whether you have other income or deductions.
How does the minimum wage compare to full-time ordinary time earnings?
Full-time adult ordinary time earnings (excluding overtime and employer super) are $2,083.70 per week, or $108,352 per year. The minimum wage is about 48% of that gross figure. After tax, the gap narrows slightly due to progressive tax rates.