Australia PAYG Tax Calculator
Calculate your take-home pay in Australia after PAYG income tax and Medicare levy.
Monthly take-home pay
A$5,584.33
A$2,577.38 fortnightly · A$1,288.69 weekly
Annual net
A$67,012.00
Total tax
A$17,988.00
Effective rate
21.2%
Annual breakdown
| Item | Annual | Monthly |
|---|---|---|
| Gross income | A$85,000.00 | A$7,083.33 |
| Income Tax (PAYG) | -A$16,288.00 | -A$1,357.33 |
| Medicare levy (2%) | -A$1,700.00 | -A$141.67 |
| Take-home pay | A$67,012.00 | A$5,584.33 |
Income Tax brackets
Australia PAYG Tax Calculator: understand your take-home pay
The PAYG (Pay As You Go) system is Australia's method of withholding income tax. Your employer deducts tax from your salary each pay period and remits it to the ATO. For the 2025/26 financial year, the tax brackets are: 0% up to A$18,200, 16% from A$18,201 to A$45,000, 30% from A$45,001 to A$135,000, 37% from A$135,001 to A$190,000, and 45% above A$190,000.
In addition to income tax, Australian residents pay the Medicare levy of 2% on total taxable income. This levy funds Australia's public healthcare system, Medicare. Low-income earners may qualify for a Medicare levy reduction or exemption. Non-residents do not pay the Medicare levy but also do not receive the A$18,200 tax-free threshold.
This calculator shows your net pay on a monthly, fortnightly and weekly basis after income tax and Medicare. Australian tax brackets are marginal, meaning only the income within each band is taxed at that rate, not your entire income. Calculations are based on current ATO rates for 2025/26.
Frequently asked questions
What is PAYG in Australia?
PAYG (Pay As You Go) is the Australian system where your employer withholds tax from your salary each pay period and sends it to the ATO (Australian Taxation Office) on your behalf.
How much is the Medicare levy in Australia?
The Medicare levy is 2% of your taxable income. It funds Australia's public health system. Low-income earners may qualify for a reduction or exemption.
What is the tax-free threshold in Australia?
The first A$18,200 of annual income is tax-free for Australian residents. Non-residents are taxed from the first dollar earned.
What are the Australian tax brackets for 2025/26?
The rates are: 0% up to A$18,200, 16% from A$18,201 to A$45,000, 30% from A$45,001 to A$135,000, 37% from A$135,001 to A$190,000, and 45% above A$190,000.