Net Salary Calculator: Estimate Your Take-Home Pay After Tax and Medicare in Australia

Understanding Your Net Salary

Your net salary—the amount that reaches your bank account—is your gross pay minus income tax and the Medicare levy. This guide helps you estimate your take-home pay using the 2026–27 tax rates. Remember, this is an estimate only and does not account for HELP/HECS repayments, the Medicare levy surcharge, salary sacrifice, or payroll tax-table rounding.

How Tax Brackets Work

The Australian Tax Office applies a progressive tax system. For the 2026–27 year, the rates for residents 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

To calculate your tax, find the bracket your taxable income falls into, then apply the formula. For example, if you earn $80,000, you pay $4,020 plus 30% of ($80,000 - $45,000) = $4,020 + $10,500 = $14,520 in tax.

Medicare Levy and Thresholds

The Medicare levy is 2% of your taxable income, but you may be exempt or pay a reduced amount if your income is below certain thresholds. For single people, the latest published 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 10 cents per dollar over the lower threshold. Above $35,013, you pay the full 2%. For example, on $30,000, the levy is 10% of ($30,000 - $28,011) = $198.90.

Low Income Tax Offset (LITO)

The Low Income Tax Offset reduces the tax you pay. For 2026–27, the maximum offset is $700 for taxable incomes up to $37,500. It then reduces by 5 cents per dollar until $45,000, where it becomes $325. After $45,000, it reduces by 1.5 cents per dollar until it reaches zero at $66,667. LITO can only reduce your tax to zero; it does not result in a refund.

Superannuation and Take-Home Pay

Superannuation is not deducted from your take-home pay if your salary is advertised as 'plus super'. From 1 July 2026, the super guarantee rate is 12% on earnings up to a maximum contribution base of $270,830. If your salary is 'including super', the super component is part of your total package and reduces your cash salary. Always check how your salary is quoted.

Comparing Your Pay to Benchmarks

Fair Work sets the national minimum wage at $26.44 per hour and $1,004.90 per week ($52,255 annually). The Australian Bureau of Statistics reports average weekly earnings: all employees (including part-time) average $1,579.20 per week ($82,118 annually), while full-time adult ordinary time earnings average $2,083.70 per week ($108,352 annually). These benchmarks help you see where your gross pay sits. Your net pay will be lower after tax and Medicare.

Using the Net Salary Calculator

To estimate your take-home pay, start with your gross annual salary. Subtract the tax calculated from the brackets above, then subtract the Medicare levy (after applying any shading or exemption). Add back any LITO if applicable. The result is your net annual salary. Divide by 26 for fortnightly pay or by 52 for weekly pay. For a quick estimate, use our After-tax salary guide or the Clearance tool for a more detailed calculation. Remember, this is not a tax assessment.

Important Notes

• This guide uses resident tax rates only. Non-residents have different rates.
• The Medicare levy surcharge applies if you do not have appropriate private hospital cover and your income exceeds certain thresholds. This guide does not include that.
• Salary packaging, such as novated leases, can reduce your taxable income. See our Salary packaging guide for more.
• The Tax and Medicare page has more details on thresholds and offsets.

Use the Benchmarks page to compare your pay to national averages. For minimum wage details, see Minimum wage. Your take-home pay is what you actually receive, so understanding these calculations helps you plan your budget.