Australia Net Salary Calculator

About This Calculator

This Australia Net Salary Calculator estimates your take-home pay after federal income tax and the Medicare levy. Australia has no state or territory income tax, so your deductions are simpler than in many other countries. The calculator uses official ATO rates for the selected financial year (July–June). You can add pre-tax deductions (e.g. health insurance) and salary sacrifice super to get a more accurate result. Employer super (12% from July 2025) is shown for reference but is not deducted from your salary—it is paid on top by your employer.

How Is Take-Home Pay Calculated in Australia?

Federal income tax is calculated using progressive brackets. For 2025-26, the tax-free threshold is $18,200. Above that, rates apply as follows: 16% on income up to $45,000, 30% up to $120,000, 37% up to $180,000, and 45% above $180,000. The Medicare levy is 2% of taxable income for most taxpayers (with low-income thresholds: nil below about $24,800, phased in to $31,000).

Your gross salary is reduced by any pre-tax deductions (e.g. health insurance, salary sacrifice super). The remaining amount is your taxable income. Federal tax and Medicare levy are calculated on this figure. Net salary = gross salary minus federal tax, Medicare levy, and any salary sacrifice super.

Superannuation: Employers contribute 12% (from July 2025) on top of your salary. This is not deducted from your take-home pay. Salary sacrifice contributions reduce your taxable income and thus your tax bill. The calculator provides estimates only; for official rates, see the Australian Taxation Office (ATO).