How to Calculate Take Home Pay in Australia 2025-26

If you want to know how to calculate take home pay in Australia, you need to start with your gross salary and then subtract income tax, the Medicare levy, and any HECS/HELP repayments. What lands in your bank is your net (take-home) pay. For the 2025-26 financial year, tax rates and thresholds are set by the ATO, and many employers also put 11.5% of your ordinary time earnings into super. This guide walks you through each step so you can work out your take-home pay—or you can use our free Australian pay calculator for instant results.

Step 1: Start with your gross income

Your gross income is your salary or wages before any tax or other deductions. It might be quoted as an annual, monthly, fortnightly or weekly amount. For consistency, many people work in annual figures: multiply weekly pay by 52, fortnightly by 26, or monthly by 12 to get your yearly gross.

Step 2: Apply the 2025-26 tax brackets

Australian residents have a tax-free threshold of $18,200 for 2025-26. Above that, income is taxed in brackets. Above that: 16% on $18,201–$45,000; 30% on $45,001–$135,000; 37% on $135,001–$190,000; and 45% on income above $190,000. You work out the tax on each slice and add them. Our pay calculator does this automatically using the latest ATO rates.

Step 3: Add the Medicare levy

Most Australian residents pay a Medicare levy of 2% of taxable income. There are reductions or exemptions for lower incomes and some visa holders. If your income is above the Medicare levy surcharge thresholds and you don’t have an appropriate level of private hospital cover, you may also pay the Medicare Levy Surcharge (between 1% and 1.5% depending on income). Both are included in our calculator when you enter your details.

Step 4: Subtract HECS/HELP repayments if you have a debt

If you have a HECS or HELP debt, the ATO uses your repayment income and the 2025-26 repayment thresholds to work out a compulsory repayment. That amount is withheld by your employer (or paid when you lodge your return if you’re self-employed). Repayment rates start at 1% and increase with income. Our HECS debt calculator shows how much is withheld at different income levels.

Step 5: Superannuation (doesn’t reduce take-home pay)

For 2025-26 the Superannuation Guarantee (SG) rate is 11.5%. Your employer must pay this on top of your gross salary (on ordinary time earnings). So your take-home pay is not reduced by super—super is an extra amount paid into your fund. When comparing jobs, remember that “total package” may include super on top of salary.

Putting it together

Take-home pay = Gross salary (or wages) minus income tax minus Medicare levy (and surcharge if applicable) minus HECS/HELP repayments. Super is additional. For a quick result, use our free pay calculator: enter your salary, pay frequency, and whether you have HECS and private health cover to see your estimated net pay and a full breakdown.