How is take-home pay calculated in Australia?
Your take-home (net) pay is your gross salary minus income tax, Medicare Levy (2%), any HECS/HELP repayment, and the Medicare Levy Surcharge if applicable. Employer superannuation (12% from 1 July 2025) is paid on top of your salary and does not reduce take-home pay. This calculator applies FY 2026–27 rates, including the 15% bracket from 1 July 2026 and the Low Income Tax Offset (LITO).
What is the difference between gross pay and net pay?
Gross pay is your salary before any deductions — the number on your employment contract. Net pay (take-home pay) is what actually lands in your bank account after income tax, Medicare Levy and any other compulsory deductions are withheld by your employer. For most Australian residents, net pay is 70–85% of gross pay depending on income level.
Does superannuation come out of my pay?
No. Employer superannuation contributions (12% from 1 July 2025 under the Superannuation Guarantee) are paid by your employer in addition to your salary. They do not reduce your take-home pay. However, if you make voluntary salary sacrifice contributions to super, those amounts do reduce your pre-tax salary and therefore your take-home pay.
What is the Medicare Levy Surcharge (MLS)?
The Medicare Levy Surcharge is an additional 1%–1.5% tax that applies to singles with income for MLS purposes over $105,000 in 2026–27 (1% to $123,000, 1.25% to $164,000, 1.5% above) who do not hold private hospital cover. It is separate from the standard 2% Medicare Levy. Taking out a compliant private hospital insurance policy removes the surcharge — often for less than the surcharge itself. Tick the 'no private hospital cover' box in the calculator to include MLS in your estimate.
How does HECS/HELP repayment affect my take-home pay?
If you have a HECS/HELP debt, your employer withholds additional tax at source once your repayment income exceeds $69,528 (2026–27). Repayments are marginal: 15c for each $1 above $69,528, rising to 17c above $129,717, and 10% of total income above $186,050. This reduces your net pay in the same way as income tax. Tick 'I have a HECS/HELP debt' to include this in your calculation.
How much tax do I pay on $100,000 in Australia (2026–27)?
On a gross salary of $100,000 in FY 2026–27: income tax = $20,520 (no LITO at this income). Medicare Levy = $2,000 (2%). Total deductions = $22,520. Take-home pay = $77,480 per year, or about $6,457 per month. Effective tax rate ≈ 22.5%. Plus your employer pays $12,000 in super on top.
What are the tax rates for working holiday makers in Australia?
Working holiday makers on a 417 or 462 visa pay 15% on the first $45,000 of Australian income, then 30% from $45,001 to $135,000, 37% from $135,001 to $190,000 and 45% above $190,000 (ATO working holiday maker rates, 2026–27). No tax-free threshold or LITO applies. Select 'Working holiday (417 / 462)' in the residency dropdown.