How to Calculate Take-Home Pay in Australia (2026–27)
CalculatorQuest Editorial Team
Australian Tax & Finance Specialists
Take-home pay is what hits your bank account after income tax, the Medicare levy, and (if you have a student loan) HECS/HELP. This guide shows the exact 2026–27 steps so you can check a payslip, negotiate a salary, or sanity-check an offer — then verify with our free pay calculator.
The take-home pay formula
Employer super (12% SG) sits on top — not in this formula.
Step 1: Start with annual taxable income
Convert weekly, fortnightly or monthly pay to an annual figure (×52, ×26 or ×12). For a standard PAYG job, taxable income is usually close to your gross salary before salary sacrifice. Bonus, overtime and most allowances count. For a personalised estimate including sacrifice and private health, use the Australian pay calculator.
Step 2: Apply 2026–27 income tax brackets
Tax each slice of income at the matching rate. Full table in our Australian tax brackets 2026–27 guide. Key change this year: income from $18,201 to $45,000 is taxed at 15% (was 16%).
Progressive rates: you only pay each rate on income inside that band. Lower bracket is 15% from 1 July 2026 (was 16% in 2025–26).
Step 3: Subtract the Medicare levy
Most residents pay a 2% Medicare levy on taxable income. Low-income reductions and exemptions exist. Separately, the Medicare Levy Surcharge (1–1.5%) can apply above $93,000 for singles without private hospital cover — see Medicare levy & surcharge explained.
Step 4: Subtract HECS/HELP if you have a debt
Compulsory repayments start when repayment income reaches $67,000. Rates rise in bands up to 10%. Details: HECS repayment 2026–27 guide and the HECS debt calculator.
Step 5: Remember super is on top
Your employer must pay 12% Superannuation Guarantee into your fund. That money is yours, but it is not part of weekly take-home. Salary sacrifice into super reduces take-home now to grow retirement savings tax-effectively — compare options in salary sacrifice calculator.
Worked example: $85,000 salary (2026–27)
Near the average full-time wage — a useful benchmark when reading job ads.
| Item | Annual | Monthly |
|---|---|---|
| Gross salary | $85,000 | $7,083 |
| Income tax (15% + 30% bands) | −$16,020 | −$1,335 |
| Medicare levy (2%) | −$1,700 | −$142 |
| Take-home (no HECS) | $67,280 | $5,607 |
| Employer super (12% SG) | $10,200 | $850 |
Illustrative split using current ATO resident rates. Super (12% SG) is paid by your employer on top and is not deducted from take-home.
More salary levels: $85k breakdown, $75k, $120k.
Common mistakes
- Using last year's 16% lower bracket instead of 15% for 2026–27.
- Assuming a raise into a higher bracket reduces total take-home (it never does — only the marginal dollar is taxed higher).
- Forgetting HECS when comparing offers.
- Treating package (including super) as cash salary.