Australia Gross to Net Salary Calculator 2025/2026
Calculate your Australia take-home pay after PAYG. Free, accurate, updated for 2025/2026.
Australia salary calculator
2025/2026Australia income tax rates 2025/2026
| Tax band | Income | Rate |
|---|---|---|
| Tax-free | $0–$18,200 | 0% |
| Resident rate | $18,201–$45,000 | 19% |
| Resident rate | $45,001–$120,000 | 32.5% |
| Resident rate | $120,001–$180,000 | 37% |
| Resident rate | $180,001+ | 45% |
How is salary taxed in Australia?
Australia uses the Pay As You Go (PAYG) withholding system. The ATO (Australian Taxation Office) sets the rates and your employer withholds tax from each pay period.
The tax-free threshold is AUD $18,200. On income above that, rates increase progressively up to 45% for very high earners. A Medicare Levy of 2% applies to most taxpayers to fund Australia's public health system. High earners without private hospital cover may also pay the Medicare Levy Surcharge.
The Low Income Tax Offset (LITO) provides a tax reduction of up to $700 for taxable incomes below $37,500, phasing out at $66,667. This calculator includes the LITO in its estimates.
Note: Superannuation (11.5% employer contribution for FY2024-25, rising to 12% in FY2025-26) is paid on top of your agreed salary and does not reduce your take-home pay. However, you can make voluntary salary sacrifice contributions to super to reduce your income tax.