AU Pay & Tax

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How to estimate your take-home pay in Australia

Learn how to estimate take-home pay in Australia using hourly or weekly earnings, 2025–26 PAYG tax brackets, and the 2% Medicare levy.


Estimating take-home pay matters because offers, rosters, and overtime are usually quoted before tax. A quick estimate helps you budget, compare roles, and spot payslip errors early.

Quick answer: use a pay and tax calculator. The main calculator on this site converts your hourly or weekly pay into weekly, fortnightly, and annual figures with PAYG tax and a simple 2% Medicare levy. Enter your hourly rate and hours per week, and it does the rest.

Step 1 – Start from your hourly or weekly pay: If you’re paid hourly, note your base rate and typical hours per week (e.g., 38). If you’re paid weekly, use that figure directly. Exclude superannuation unless you salary sacrifice.

Step 2 – Convert to annual income: Annual gross = hourly rate × hours per week × 52. If you have a weekly figure already, multiply by 52. Fortnightly is simply weekly × 2.

Step 3 – Apply tax brackets and Medicare levy: Use the 2025–26 resident brackets (0%, 16%, 30%, 37%, 45%). Tax is progressive—each band only taxes income inside that band. Then add a 2% Medicare levy to taxable income (this calculator applies it when the tax-free threshold toggle is on).

Example calculation using $45/hour and 38 hours per week: Annual gross ≈ $45 × 38 × 52 = $88,920. Tax: $4,288 on $18,201–$45,000 plus $13,176 on $45,001–$88,920 ≈ $17,464. Medicare levy: 2% of ($88,920 – $18,200) ≈ $1,414. Estimated take-home: ~$70,042 per year (before any offsets or deductions).

Common reasons your payslip looks different: HELP/HECS repayments, additional withholding your employer applies, salary sacrifice into super, offsets or deductions not captured here, rounding differences per pay cycle, and other pre- or post-tax benefits (e.g., novated leases).

Call to action: Try the Australian Pay & Tax Calculator on this site to see weekly, fortnightly, and annual take-home figures with PAYG tax and Medicare levy side by side.

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