Pay Calculator · FY 2026-27
Take-home pay, broken down to the cent
Australian pay calculator with full Medicare, MLS, HELP / HECS, LITO, super, salary sacrifice, and novated lease coverage. Updated for the Stage 3+ second-phase cut (16% → 15%) from 1 July 2026.
Your numbers
| Item | Annual | Monthly | Fortnightly | Weekly | Daily | Hourly |
|---|---|---|---|---|---|---|
| Gross income | $85,000 | $7,083 | $3,269 | $1,635 | $327 | $43.02 |
| Income tax | $16,020 | $1,335 | $616 | $308 | $62 | $8.11 |
| Medicare levy | $1,700 | $142 | $65 | $33 | $7 | $0.86 |
| Take-home pay | $67,280 | $5,607 | $2,588 | $1,294 | $259 | $34.05 |
| Super (employer) | $10,200 | $850 | $392 | $196 | $39 | $5.16 |
Visualised
Where each dollar of gross goes
Annual breakdown, showing only non-zero components.
- Take-home$67,28079.2%
- Income tax$16,02018.8%
- Medicare levy$1,7002.0%
Where your tax dollars go
Based on 2025-26 Federal BudgetYour federal tax of $17,720 split by the Australian Government's 2025-26 expenditure mix.
- Social Security & Welfare$5,19229%
- NDIS$1,1877%
- Health$2,83516%
- Education$1,4188%
- General Government Services$1,2407%
- Defence$1,0636%
- Public Debt Interest$8865%
- Transport & Infrastructure$7094%
- Other Government Functions$3,19018%
Source: Budget Paper 1, Statement 6 (Expenses by Function), 2025-26 Budget.
Marginal rate — your position on the curve
Every extra dollar you earn above $85,000 keeps you 70¢ (marginal rate 30%).
Insights
Quick wins for your situation
Rule-based hints from your inputs — not personal advice. Speak to an accountant before acting on anything material.
- Opportunity
Salary-sacrifice more into super
~$2,970/yrYou have roughly $19,800 of headroom under the $30,000 concessional super cap this year. Sacrificing the rest is taxed at 15% inside super instead of your marginal rate.
- Opportunity
EV novated lease worth a look
~$6,500/yrElectric vehicles under the luxury car tax fuel-efficient threshold are FBT-exempt when packaged through a novated lease — typical net savings are $5,000–$8,000 per year if you are due for a vehicle.
Where you sit on the income distribution
You earn more than ~67% of Australians.
- Median income
- $58,000
- Top 10% starts at
- $155,000
- Your decile
- 7 of 10
Source: ATO Taxation Statistics 2022-23, Individuals (taxable income).
Future
Super at retirement
Compounded from this year's contributions of $10,200. Nominal projection — does not adjust for inflation.
Real vs nominal take-home
Inflation (~2.5% p.a.) shrinks the buying power of every dollar.
- Nominal take-home (2026-27)
- $67,280
5-year projection (no real wage growth)
Take-home growing only with CPI. Real value stays flat by definition.
Pay rise impact (bracket creep)
How much of an extra dollar reaches your pocket after tax + inflation.
- Pay rise
- $5,000
- Extra take-home (nominal)
- $3,400
- In real (CPI-adjusted) dollars
- $3,317
You keep 66% of the rise in real terms after tax and inflation.
Compare
How we calculate your take-home pay
The Pay Calculator is built on the same ATO bracket logic that powers our income tax calculator, extended with the levies, offsets, and deductions that determine what actually lands in your bank account each pay period:
- Gross income — annualised from whichever period you enter (annual, monthly, fortnightly, weekly, daily, or hourly with a configurable hours-per-week assumption).
- Pre-tax adjustments — salary sacrifice contributions to super and novated lease pre-tax payments are subtracted before tax is calculated.
- Income tax — applied using the resident, non-resident, or Working Holiday Maker bracket schedule for the selected financial year.
- Medicare levy — 2% of taxable income for residents above the low-income threshold, with a shade-in zone and family / senior / dependent adjustments.
- Medicare Levy Surcharge — 1% / 1.25% / 1.5% on top of the standard levy for residents without private hospital cover whose income exceeds the tiered thresholds.
- HELP / HECS repayment — for FY 2025-26 onwards, applied as a marginal 15% on income above $67,000 (rising to 17% above $125,000), per the 2024 reform.
- Low Income Tax Offset — up to $700, phasing out at 5c per dollar above $37,500 and then 1.5c per dollar above $45,000.
- Super Guarantee — 12% from 1 July 2025 (held at cap). Salary sacrifice contributions are tracked separately as additional concessional contributions.
- Novated lease impact — pre-tax reduces taxable income; post-tax ECM offsets FBT 1:1; EVs below the LCT fuel-efficient threshold attract a full FBT exemption.
FY 2026-27 income tax brackets
The Stage 3+ second-phase cut (Budget 2026-27) reduces the marginal rate on the $18,201 – $45,000 band from 16% to 15% from 1 July 2026. Higher brackets are unchanged.
| Taxable income | FY 2025-26 | FY 2026-27 |
|---|---|---|
| $0 – $18,200 | 0% | 0% |
| $18,201 – $45,000 | 16% | 15% |
| $45,001 – $135,000 | 30% | 30% |
| $135,001 – $190,000 | 37% | 37% |
| $190,001+ | 45% | 45% |
See our Budget 2026-27 explainer for the full set of announced changes.
Medicare levy and surcharge
Australian residents pay a 2% Medicare levy on taxable income. Below the low-income threshold ($27,222 for singles in FY 2025-26) the levy is waived; between the lower and upper thresholds it shades in at 10c per dollar. Seniors, families, and households with dependent children use uplifted thresholds.
The Medicare Levy Surcharge (MLS) is an extra 1% / 1.25% / 1.5% charge that applies only to residents without an appropriate level of private hospital cover. Holding private hospital cover for the full year zeroes the surcharge regardless of income.
HELP / HECS repayments under the 2024 reform
From 1 July 2025, study loan repayments switched to a marginal system: nothing on income below $67,000, then 15c per dollar between $67,000 and $125,000, and 17c per dollar above $125,000. This replaces the old 18-bracket whole-of-income schedule, which generated cliffs where small pay rises pushed people into significantly higher repayment rates.
Super Guarantee at 12%
The SG rate reached its legislated cap of 12% on 1 July 2025 and holds there in subsequent years. Super is calculated on Ordinary Time Earnings — generally your salary plus loadings, but excluding overtime. Salary sacrifice contributions sit on top of the SG and count towards your concessional contribution cap of $30,000 per year (2024-25 and 2025-26).
Salary sacrifice vs novated lease
Salary sacrifice to super is the simplest pre-tax saving — every dollar reduces taxable income at your marginal rate, subject to your concessional cap. A novated lease can deliver a larger saving for a vehicle you would buy anyway, especially if it is an eligible electric vehicle (below the LCT fuel-efficient threshold of around $96k for FY 2025-26). For non-EVs, the Fringe Benefits Tax cost typically offsets most of the tax saving unless you use the Employee Contribution Method post-tax payment to zero the FBT.
For a more detailed comparison including lease term, balloon, and running costs, use our dedicated novated lease calculator.
Real vs nominal income
Inflation steadily erodes the buying power of every nominal dollar. A 4% pay rise in a 3% inflation environment is really a 1% rise in real terms — and after marginal tax, you might keep only 0.7% of it. The bracket-creep tool above shows this dynamic at your specific income level.
Frequently asked questions
How is my take-home pay calculated?
We start from your gross income, subtract any pre-tax deductions (salary sacrifice, novated lease pre-tax), apply the ATO income tax brackets for the selected year, then deduct Medicare levy, Medicare Levy Surcharge (if you do not hold private hospital cover), and HELP/HECS repayments. The Low Income Tax Offset reduces tax payable for incomes under $66,667. We never assume PAYG over-withholding — these are your true entitlements at year end.
Why does this differ from my actual payslip?
Payslips withhold tax under simplified PAYG schedules that round to the cent at each pay period and can over- or under-withhold across a full year. The figures here are the legally-correct annualised amounts you would settle at tax time.
What changed in the 2026-27 tax year?
The second-phase of the Stage 3+ cuts: the marginal rate on income between $18,201 and $45,000 dropped from 16% to 15% from 1 July 2026. Every resident taxpayer earning above $18,200 saves $268 per year compared with FY 2025-26.
How is the Medicare Levy Surcharge calculated?
The MLS is a tiered 1% / 1.25% / 1.5% surcharge on top of the standard 2% Medicare levy. It applies to Australian residents who do not hold private hospital cover with income above the singles threshold ($101,000 for FY 2025-26). Family thresholds double the bracket and are uplifted by $1,500 for each dependent child after the first.
Why are Working Holiday Makers taxed differently?
WHMs are taxed at 15% from $0 (no tax-free threshold), and do not pay the Medicare levy or surcharge. The remaining brackets (30 / 37 / 45%) mirror the resident schedule.
How does a novated lease lower my tax?
The pre-tax component reduces your taxable income — at a 32% marginal rate, every $1,000 of pre-tax deduction saves $320 in tax. For electric vehicles below the LCT fuel-efficient threshold, the FBT exemption means the full pre-tax saving lands in your pocket. For non-EVs, an Employee Contribution Method (ECM) post-tax payment offsets the Fringe Benefits Tax liability.
Does this include HECS indexation?
No — indexation is applied to the outstanding HELP debt balance separately each 1 June (capped at WPI or CPI, whichever is lower). This calculator focuses on the in-year compulsory repayment deducted from your pay.