Updated for 2026-27 tax rates
Calculatax

Pay calculator: your take-home pay after tax 2026-27

This pay calculator turns a salary or hourly rate into take-home pay per week, fortnight, month and year. It applies 2026-27 ATO resident tax rates (opens in a new tab) and the 2% Medicare levy. An $85,000 salary plus super leaves $67,280 a year.

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Take-home per pay

$2,587.69

Breakdown

How this was worked out
Gross pay a year$85,000
Income tax before offsets$16,020
Low income tax offset$0
Medicare levy$1,700
Take-home a year$67,280
Take-home per year
$67,280
Per month
$5,606.67
Per fortnight
$2,587.69
Per week
$1,293.85
PAYG withheld on the payslip
$682
Income tax and Medicare levy, per year
$17,720
Employer super per year
$10,200

Key insights

  • About $681.54 comes out of each fortnight pay for income tax and the Medicare levy.
  • Your employer also pays $10,200 a year in super guarantee, on top of this salary.
  • Each extra $1,000 a year adds about $680 to your take-home pay.

It models income tax, the low income tax offset (LITO), the Medicare levy, HELP repayments, salary sacrifice and employer super. The other salary and pay calculators cover single pay cycles, raises and part-time work in more detail.

Where each dollar of gross pay goes

On $85,000, each dollar of gross pay splits three ways, and your employer adds super on top.

Take-home pay
79.15 cents
Income tax$16,020 a year
18.85 cents
Medicare levy2% of $85,000, or $1,700
2 cents
Employer superPaid into your fund, on top of the dollar
12 cents

The average rate is 20.85%, yet the next dollar you earn costs 32 cents: 30 cents of tax and 2 cents of Medicare. The tax calculator shows the bracket-by-bracket working for any income.

How the $16,020 of income tax is worked out

It's $4,020 for the income up to $45,000, plus 30 cents for each dollar from $45,001 to $85,000. The LITO is nil because it cuts out at $66,667.

If you're a foreign resident, paid by the hour or repaying HELP

Residency changes the split. A foreign resident on $85,000 pays 30% from the first dollar, or $25,500, with no tax-free threshold and no Medicare levy. Take-home pay is $59,500, which is $7,780 less than a resident keeps.

If you enter an hourly rate, the calculator multiplies it by your weekly hours and by 52. At 38 hours a week, $85,000 works out to $43.02 an hour across 1,976 hours.

With a HELP debt, the compulsory repayment on $85,000 is $2,320.80. That's 15 cents for each dollar above $69,528, and it cuts take-home pay to $64,959.20.

Package or base salary: is super inside the number?

Ask first whether a quoted figure includes super, because it changes take-home pay by thousands. A "package" or "total remuneration" figure usually includes the 12% super guarantee. A "base salary plus super" figure doesn't. Choosing between two jobs? Try the job offer comparison.

Two offers that both say $85,000

A: $85,000 including super

Base salary
$75,892.86
Super (12%)
$9,107.14
Tax and Medicare
$14,805.72
Take-home a year
$61,087.14
Take-home a week
$1,174.75

B: $85,000 plus super

Base salary
$85,000.00
Super (12%)
$10,200.00
Tax and Medicare
$17,720.00
Take-home a year
$67,280.00
Take-home a week
$1,293.85
2026-27 resident rates, no HELP debt. Source: ATO.

Offer A's base salary is $85,000 ÷ 1.12. Offer B puts $6,192.86 more a year in your bank account, about $119.09 a week. It also adds $1,092.86 more to super, so the combined gap is $7,285.72 a year.

Turning a package into a base salary, and how Payday Super works

To turn any package that includes super into a base salary, divide it by 1.12. A $100,000 package, for example, is a base salary of $89,285.71 with $10,714.29 of super.

Since 1 July 2026, Payday Super means your employer pays super within 7 business days of each payday. It's calculated on "qualifying earnings", which replaced ordinary time earnings. Once qualifying earnings reach the annual maximum contribution base of $270,830, your employer can stop paying the minimum super guarantee for the rest of the year.

Pre-tax deductions: salary sacrifice and novated leases

Salary sacrifice moves part of your pay before tax. Your taxable income falls, so income tax and Medicare fall too. The novated lease calculator compares a car with no lease.

Sacrificing $5,000 a year into super on an $85,000 salary drops taxable income to $80,000. Your pay falls by less than you put in, because the 32-cent marginal rate no longer applies to the sacrificed amount.

$5,000 sacrificed on an $85,000 salary
StepAmountRunning total
Sacrificed into super−$5,000-$5,000
Tax and Medicare saved$17,720 falls to $16,120+$1,600-$3,400
Change in take-home pay−$3,400

The $5,000 counts towards the concessional contributions cap of $32,500 for 2026-27, together with the $10,200 of employer super. Your fund deducts contributions tax when the money arrives, which the pay calculator doesn't show.

How a novated lease compares

A novated lease also uses pre-tax pay for car costs, with some payments made after tax. The pre-tax share lowers taxable income in the same way. The fringe benefits tax treatment depends on the car and the lease, so ask your lease provider for the split before you enter it.

Same salary, three pay cycles: why weekly withholding differs

The tax you owe for the year doesn't depend on how often you're paid. The amount withheld each payday does, by a few dollars, because Schedule 1 rounds every pay to a whole-dollar weekly figure.

2026-27 Schedule 1, scale 2 (tax-free threshold claimed). Source: ATO.
$85,000 salaryGross per payPAYG withheld per payWithheld over the yearGap to actual tax of $17,720
Weekly (52)$1,634.62$341$17,732$12 over
Fortnightly (26)$3,269.23$682$17,732$12 over
Monthly (12)$7,083.33$1,478$17,736$16 over

The gaps are small and come back in your tax return. Larger gaps appear in years with 53 weekly or 27 fortnightly paydays. The PAYG withholding calculator shows the withholding on a single pay for any scale.

A second job is different. If you don't claim the tax-free threshold there, scale 1 applies, and a $1,634.62 week has $452 withheld instead of $341.

How Schedule 1 converts each pay cycle

The ATO formula ignores cents in weekly earnings and adds 99 cents. Fortnightly pay is halved, worked out as a week, rounded, then doubled.

Monthly pay is multiplied by 3 and divided by 13 to get a week. The weekly amount withheld is then multiplied by 13 and divided by 3 (ATO working out the weekly earnings (opens in a new tab)).

Take-home pay at common salaries

2026-27 resident rates including LITO and the 2% Medicare levy. Base salary with super paid on top, no HELP debt. Source: ATO.
SalaryTax and MedicareTake-home a weekTake-home a fortnightTake-home a monthTake-home a yearSuper on top
$55,000$7,945$904.90$1,809.81$3,921.25$47,055$6,600
$70,000$12,920$1,097.69$2,195.38$4,756.67$57,080$8,400
$85,000$17,720$1,293.85$2,587.69$5,606.67$67,280$10,200
$100,000$22,520$1,490.00$2,980.00$6,456.67$77,480$12,000
$120,000$28,920$1,751.54$3,503.08$7,590.00$91,080$14,400
$150,000$39,570$2,123.65$4,247.31$9,202.50$110,430$18,000

At $55,000 the LITO is still $175, which trims tax to $7,945. From $66,667 the offset is gone, so every salary above that point has a flat 32-cent marginal rate until $135,000.

What the estimate leaves out

The result assumes one job held for the full year, resident tax rates and the tax-free threshold claimed. It will differ from your final tax in these cases:

  • You have deductions, investment income or rental income.
  • You have no private hospital cover and earn over $105,000 as a single, so the Medicare levy surcharge applies.
  • Your income is low enough for a Medicare levy reduction. The calculator uses the latest announced (2025-26) threshold of $28,011 because 2026-27 figures are not yet set.
  • You change jobs or residency during the year.

For 2026-27 you can also claim a $1,000 standard deduction for work-related expenses without receipts, which the calculator doesn't apply by default.

Each pay cycle also has its own tool, and you can start from an hourly rate.

Pay calculator questions: tax on a salary, taxable income and net income

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Last reviewed

How much tax will I pay on my salary?

On $85,000 you pay about $17,720 in 2026-27: $16,020 of income tax and $1,700 of Medicare levy. That's 20.85% of gross pay. If you have two jobs, claim the tax-free threshold from one employer only. Claiming it from both usually leaves too little withheld.

Is taxable income before or after tax?

Before. Taxable income is your assessable income minus deductions, and tax is worked out on it. On an $85,000 salary with $5,000 salary sacrificed into super, taxable income is $80,000. Tax and Medicare on that figure are $16,120.

How do I calculate net income from my salary?

Take gross pay, subtract income tax, add back the LITO, then subtract the 2% Medicare levy and any HELP repayment. On $120,000 that's $120,000 − $26,520 − $2,400 = $91,080. For a casual job, multiply your hourly rate, which already includes the 25% loading, by your hours first.

Is net income after tax?

Yes. Net income, or take-home pay, is what remains after income tax, the Medicare levy and other deductions. On $85,000, net income is $67,280 a year, or $1,293.85 a week.

Estimates only, based on published rates for 2026-27. General information, not tax or financial advice.

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Sources

Provisional: the Medicare levy low-income thresholds ($28,011 and $35,013) are carried over from the previous financial year until the ATO publishes the 2026-27 figures.