PAYG Tax Calculator

Estimate 2025–26 income tax and take-home pay. The result includes the Medicare levy (a charge that helps fund Medicare) and LITO (a tax discount for lower incomes).

Enter taxable income (the yearly income used to work out tax) before tax is taken out.

Tax residency

Estimated 2025–26 result

Income tax
$0.00
Medicare levy
$0.00
LITO
−$0.00
Total tax
$0.00
Annual take-home
$0.00
Monthly
$0.00
Fortnightly
$0.00
Weekly
$0.00
Effective tax rate
0.00%

What is the PAYG Tax Calculator?

The PAYG Tax Calculator estimates the annual income tax that may apply to Australian taxable income for the 2025–26 financial year. For Australian residents, it also estimates the Medicare levy and Low Income Tax Offset, then shows total tax and take-home pay by year, month, fortnight and week.

PAYG stands for Pay As You Go. Employers generally withhold amounts from salary or wages during the year and send them to the Australian Taxation Office. The withheld amount is a prepayment toward the employee’s final tax position, not a separate tax.

How PAYG withholding works

Your employer normally uses ATO withholding schedules and the information in your tax file number declaration to determine how much to withhold each pay cycle. At the end of the financial year, your income, deductions, offsets and tax already withheld are reconciled through the tax return process.

This calculator works from annual taxable income and is designed for planning rather than payroll processing. It does not model deductions, HELP repayments, salary packaging, superannuation, private health insurance adjustments, Medicare levy surcharge or every withholding declaration choice.

Australian resident income tax rates 2025–26

Taxable incomeIncome tax
$0–$18,200Nil
$18,201–$45,00016c for each $1 over $18,200
$45,001–$135,000$4,288 + 30c for each $1 over $45,000
$135,001–$190,000$31,288 + 37c for each $1 over $135,000
$190,001 and over$51,638 + 45c for each $1 over $190,000

Medicare levy and LITO

For a single Australian resident under the supplied thresholds, the Medicare levy is fully exempt at taxable income up to $27,222. It shades in between $27,223 and $34,027, then reaches the standard 2% of taxable income. Family thresholds, seniors and pensioners, dependants and partial-year circumstances are not modelled.

The Low Income Tax Offset is up to $700 for taxable income of $37,500 or less. It reduces above that level and reaches zero at $66,668. LITO can reduce tax payable but does not create a cash refund by itself. Non-residents receive no tax-free threshold under the supplied rates and this calculator does not apply Medicare levy or LITO to them.

Worked example: $100,000 Australian resident income

Income tax is $20,788: $4,288 plus 30% of the $55,000 above $45,000. The full Medicare levy is $2,000 and LITO is zero at this income, so tax before offsets and other adjustments is $22,788. Estimated annual take-home pay is $77,212, or about $6,434.33 per month.

Non-resident tax calculation

For the non-resident option, the calculator applies 30% from the first dollar up to $135,000, 37% from $135,001 to $190,000, and 45% above $190,000. It applies no tax-free threshold, Medicare levy or LITO. Tax residency can be complex, so confirm your status before relying on a non-resident estimate.

Disclaimer: this PAYG tax estimate is general information, not personal tax advice or a payroll withholding calculation. It excludes deductions, HELP debt, Medicare levy surcharge and many individual circumstances. Confirm an important figure with the ATO, a registered tax agent or your payroll team.

Frequently asked questions

Is PAYG withholding the same as my final tax?

No. PAYG withholding is paid toward your expected liability during the year. Your final position is worked out after income, deductions, offsets and amounts already withheld are reconciled.

Does the PAYG Tax Calculator include Medicare levy?

Yes for Australian residents, using the supplied single-person exemption and shade-in thresholds. It does not model family, senior or pensioner thresholds, and it excludes Medicare levy surcharge.

How is LITO calculated?

The calculator applies up to $700 at $37,500 or less, phases it down across the relevant income ranges and reduces it to zero at $66,668.

Does the calculator include HECS or HELP repayments?

No. HELP repayment income and thresholds are separate. Use a dedicated HELP repayment calculator when that tool becomes available.

Why might my payslip differ?

Payroll withholding is calculated per pay period and may reflect declaration choices, rounding, allowances, bonuses or other adjustments. This tool starts with an annual figure and estimates annual tax.

Can a non-resident use this calculator?

Yes. Select non-resident to apply the supplied 30%, 37% and 45% rates with no tax-free threshold, Medicare levy or LITO.