How Australian take-home pay works (2025/26)
In Australia, take-home pay is your salary minus income tax and the 2% Medicare levy. This calculator uses the 2025/26 resident rates. Your employer also pays superannuation of 12% on top of your salary — it goes into your super fund, not your pocket, so it does not reduce take-home.
Income tax is progressive, and the first $18,200 is tax-free. A salary-sacrifice contribution to super is taken before income tax, so it lowers the amount taxed at your marginal rate (though it is taxed at 15% inside the fund).
| Taxable income | Rate |
|---|---|
| 0 to $18,200 | 0% |
| $18,201 to $45,000 | 16% |
| $45,001 to $135,000 | 30% |
| $135,001 to $190,000 | 37% |
| Over $190,000 | 45% |
Common questions
Is superannuation taken out of my take-home pay?
No. The 12% Super Guarantee for 2025/26 is paid by your employer on top of your salary, straight into your super fund. It does not reduce the take-home shown here unless your salary is quoted as a 'package including super'.
What is the Medicare levy?
It is a 2% levy on taxable income that helps fund Australia's public health system. Most taxpayers pay it; there is a reduction or exemption for low incomes.
Does this use the resident tax rates?
Yes. It uses the 2025/26 rates for Australian residents for tax purposes, which include the tax-free threshold. Non-residents are taxed from the first dollar at different rates.
Does it include the Medicare Levy Surcharge?
No. The surcharge applies to higher earners without adequate private hospital cover and ranges from 1% to 1.5%. Since it depends on your insurance, it is left out of this estimate.
Educational estimate for an Australian resident. It excludes the Medicare Levy Surcharge, HECS/HELP repayments, and offsets.
- 1.Individual income tax rates — Australian Taxation Office
- 2.Super guarantee percentage — Australian Taxation Office