How to Work Out Your Take-Home Pay From Your Salary (2026-27)
Most Australians know their gross salary — the number on the contract — but very few can tell you what actually lands in their bank account each fortnight. This guide walks through every deduction the ATO applies in 2026-27 so you can work it out yourself, or jump straight to our Salary Calculator and let it do the maths.
Gross vs take-home pay
Your gross salary is the headline figure — what you earn before any deductions. Your take-home pay (also called net pay) is what's left after income tax, the Medicare Levy and any HECS/HELP repayments are taken out. Superannuation is paid by your employer on top of (or sometimes out of) your gross figure depending on your contract.
A simple way to think about it: gross is the promise, take-home is the reality. The gap between the two grows as you earn more, because Australia's tax system is progressive.
The 2026-27 tax brackets
Income tax in Australia is charged in bands. Only the slice of your income that falls inside each band is taxed at that band's rate — this is what "marginal" means.
| Taxable income | Tax rate |
|---|---|
| $0 – $18,200 | 0% (tax-free threshold) |
| $18,201 – $45,000 | 15% |
| $45,001 – $135,000 | 30% |
| $135,001 – $190,000 | 37% |
| Over $190,000 | 45% |
Worked example: earning $80,000 doesn't mean you pay 30% on the whole lot. You pay nothing on the first $18,200, then 15% on the next $26,800 ($4,020), then 30% on the remaining $35,000 ($10,500) — a total of $14,520 in income tax.
The Medicare Levy
On top of income tax, most Australian residents pay a 2% Medicare Levy on their taxable income to help fund the public health system. Low-income earners may pay a reduced rate or nothing at all, and higher earners without private hospital cover may also pay the Medicare Levy Surcharge (1–1.5%) on top.
For most full-time earners, just add 2% of your taxable income to your tax bill and you'll be close.
Superannuation
The Super Guarantee (SG) rate for 2026-27 is 12%. That's the minimum your employer must contribute to your super fund based on your ordinary time earnings. Super is taxed at 15% inside the fund, not at your marginal rate, which is why salary sacrificing extra into super is so popular.
The big thing to watch when reading a contract: is the figure inclusive or exclusive of super?
- $100,000 + super means $100,000 cash salary plus $12,000 paid into super — a $112,000 package.
- $100,000 inclusive of super means your cash salary is about $89,285 and $10,715 goes to super.
Salary sacrifice and your take-home pay
Salary sacrifice means asking your employer to redirect part of your pre-tax salary somewhere else — most commonly into super. Because that slice never hits your taxable income, you pay less income tax on it, and the contribution is taxed at just 15% inside the super fund instead of your marginal rate.
Two practical catches worth knowing:
- HECS/HELP: sacrificed amounts are added back when the ATO works out your repayment income, so salary sacrificing won't reduce your HECS repayment.
- Division 293: for high earners, sacrificed super counts toward the $250,000 threshold and can attract an extra 15% tax on the portion above it (more below).
HECS/HELP repayments
From 1 July 2025, HECS/HELP switched from the old "stepped" system to a new marginal system. For 2026-27 it works like this:
- No repayment if your repayment income is under $69,528.
- 15c per dollar on the slice of income above $69,528.
- Plus an extra 17c per dollar on the slice above $129,717.
- Or 10% of your total repayment income, whichever is lower.
Outstanding HELP balances are also indexed each year. On 1 June 2026 the indexation rate is 2.8%, applied to whatever's left of your loan before your year's repayments come off.
If you're not a permanent resident
Two common groups are taxed on different scales to Australian residents — and neither gets the $18,200 tax-free threshold or pays the Medicare Levy.
- Foreign residents pay 30% from the first dollar earned in Australia, up to $135,000, then the standard 37% and 45% bands above that.
- Working holiday makers on 417 or 462 visas pay a flat 15% on the first $45,000, then move into the resident marginal rates above that.
Our Salary Calculator lets you switch residency status so the right scale is applied automatically.
Division 293 tax for high earners
If your income plus concessional super contributions exceeds $250,000 in a financial year, an extra 15% Division 293 tax applies to the portion of your concessional contributions sitting above that threshold — not to all of your super. It effectively brings the tax rate on that slice from 15% up to 30%, closer to your marginal rate. The ATO assesses it separately after you lodge your return.
How to convert your salary to an hourly rate
The Australian full-time standard is 38 hours per week — usually five 7.6-hour days. Across a 52-week year that works out to roughly 1,976 hours.
Worked example: a $100,000 gross salary ÷ 1,976 hours ≈ $50.61/hr gross. If you're paid hourly with penalty rates and allowances instead of a flat salary, our Pay Calculator is the better tool — it works bottom-up from your roster and hourly base rate.
Work it out instantly
Doing the maths by hand is great for understanding the moving parts, but for a quick answer use the calculator — it applies all of the above (brackets, Medicare, super, HECS) in real time as you type.
Frequently asked questions
How much tax do I pay on $100,000 in Australia?
For 2026-27, a $100,000 taxable income attracts roughly $5,538 in tax on the first $45,000 (15% of the slice above $18,200) plus 30% on the next $55,000 ($16,500) — about $22,038 in income tax, plus the 2% Medicare Levy ($2,000). That leaves around $75,962 take-home before super and HECS. Your exact take-home depends on offsets, deductions and whether super is included in the $100k.
Does my salary include super?
It depends on your contract. Australian employers must quote whether your salary is 'plus super' (the 12% Super Guarantee is paid on top) or 'inclusive of super' (the headline figure already contains the super contribution). Always check your contract — a $100,000 package inclusive of super is meaningfully less cash in hand than $100,000 plus super.
How do I convert my salary to an hourly rate?
The standard full-time basis in Australia is 38 hours a week, or roughly 1,976 hours a year (38 × 52). Divide your gross annual salary by 1,976 to get a gross hourly rate. For example, $100,000 ÷ 1,976 ≈ $50.61/hr. For a take-home hourly rate, divide your after-tax salary by the same figure.
Do I have to repay HECS on my salary?
Yes — once your repayment income passes $69,528 in 2026-27, HECS/HELP repayments are deducted from your pay via PAYG. The new marginal system charges 15c per dollar above $69,528 and an extra 17c per dollar above $129,717, or 10% of your total repayment income — whichever is lower.
How are working holiday makers taxed in Australia?
Working holiday makers on 417 or 462 visas pay a flat 15% on the first $45,000 of their Australian earnings, then move into the standard resident marginal rates above that ($45,001–$135,000 at 30%, and so on). They don't get the $18,200 tax-free threshold and don't pay the Medicare Levy. Your employer must be registered with the ATO to withhold at the WHM rate; otherwise foreign-resident rates (30% from the first dollar) apply.
This is general information based on 2026-27 ATO rates, not financial advice. Check ato.gov.au for current figures.