Why use this calculator
Knowing your take-home pay before you accept a job offer — or before you push for that pay rise — changes everything. This calculator applies Australia's 2025-26 ATO tax brackets, the Low Income Tax Offset (LITO), the Medicare levy, and optional HECS/HELP repayment rates to give you the most accurate possible estimate of what actually lands in your bank account each week, fortnight, month, and year.
How to use it
Enter your annual gross salary. Optionally add any salary sacrifice to super (which reduces your taxable income). Choose whether you pay the Medicare levy (most residents do). If you have a HECS or HELP debt, switch that on and optionally enter your balance to see an estimated repayment period. Results update instantly.
The formula
Taxable Income = Gross Salary − Salary Sacrifice. Income Tax = ATO 2025-26 brackets applied to taxable income, minus LITO. Medicare Levy = 2% of taxable income. HECS Repayment = repayment income × ATO repayment rate (1%–10% depending on income). Take-Home = Taxable Income − Income Tax − Medicare Levy − HECS Repayment.
Worked examples
$85,000 gross, Medicare levy, no HECS
~$63,800 take-home per year ($5,317/month)
$120,000 gross, Medicare levy, HECS debt of $30,000
~$83,900 take-home per year ($6,992/month)
$65,000 gross, $5,000 salary sacrifice to super, Medicare levy
~$50,300 take-home per year ($967/week)
When people use it
- Evaluating a job offer and understanding actual take-home
- Planning a budget around your real net income
- Seeing how a pay rise affects your after-tax pay
- Calculating whether salary sacrifice to super is worthwhile
- Estimating HECS repayment timeline and impact on cash flow
Tips
- LITO is automatically applied — it saves low-income earners up to $700 in tax
- HECS repayments are not a tax — they're withheld by your employer and reduce your debt
- Salary sacrifice to super reduces your taxable income, which lowers your HECS repayment rate too
- This calculator uses 2025-26 ATO rates; always verify with the ATO or a tax agent for your specific situation
- The Medicare Levy Surcharge (extra 1–1.5%) applies if your income is over $93,000 and you don't have private hospital cover
Questions people ask
- What is the tax-free threshold in Australia for 2025-26?
- The tax-free threshold is $18,200. You pay no income tax on the first $18,200 of your income. Above that, the 16% rate applies up to $45,000, then 30% up to $135,000.
- What is LITO and do I get it automatically?
- LITO (Low Income Tax Offset) reduces your tax bill by up to $700 if your income is under $37,500. It phases out between $37,500 and $66,667. Your employer applies it automatically via your tax withheld, and it's included in this calculator.
- How are HECS / HELP repayments calculated?
- Repayments are based on your repayment income (roughly your taxable income) and range from 1% at $54,435 up to 10% for incomes over $166,000. Your employer withholds the amount — it's not optional and it doesn't appear as a tax on your tax return.
- Does salary sacrifice reduce my HECS repayment?
- Yes. Salary sacrifice into super reduces your taxable income, which can push you into a lower HECS repayment bracket. For example, reducing taxable income from $85,000 to $80,000 drops the HECS rate from 4.5% to 4.0% — a saving of about $500 per year.
- Is the Medicare levy the same as the Medicare Levy Surcharge?
- No. The 2% Medicare levy applies to most taxpayers. The Medicare Levy Surcharge (MLS) is an additional 1–1.5% that only applies if your income is over $93,000 and you don't hold private hospital insurance. This calculator includes the basic levy but not the MLS.