How much tax do I pay on my salary in Australia?

Australian income tax for residents is calculated on a progressive scale for 2025-26: $0-$18,200 is tax-free, $18,201-$45,000 is taxed at 16%, $45,001-$135,000 at 30%, $135,001-$190,000 at 37%, and income above $190,000 at 45%. On top of this, you pay a 2% Medicare levy on your total taxable income.

What is the Medicare levy?

The Medicare levy is a 2% tax on your taxable income that helps fund Australia's public healthcare system (Medicare). Most Australian residents pay the Medicare levy. Low-income earners may receive a reduction or exemption. High-income earners without private hospital cover may also pay the Medicare levy surcharge (an additional 1-1.5%).

Do I have to pay HECS-HELP from my salary?

If you have a HECS-HELP (or other HELP) debt and your repayment income exceeds the minimum repayment threshold ($54,435 for 2025-26), your employer is required to withhold compulsory repayments from your pay. The repayment rate ranges from 1% to 10% of your total income, depending on how much you earn. These repayments reduce your take home pay.

How is take home pay calculated in Australia?

Take home pay is your gross salary minus all deductions: income tax (based on ATO tax brackets), the Medicare levy (2%), and any HECS-HELP compulsory repayments. Your employer withholds these amounts from each pay and sends them to the ATO on your behalf. The remaining amount is your net (take home) pay. Superannuation is paid on top of your salary by your employer and does not reduce your take home pay.

Take Home Pay Calculator

Calculate your after-tax take home pay in Australia, including income tax, Medicare levy, and optional HECS-HELP repayments.

Last verified: 1 July 2025

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General information and estimates only — not financial, tax, or legal advice. Always verify with a licensed adviser or the ATO.

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