PAYG Withholding Calculator Australia 2025-26
About to start a new job, or just want to know what you actually take home.
Estimate how much tax your employer withholds each pay period. Based on ATO 2025-26 tax tables, including Medicare levy and HELP debt.
PAYG is an estimate of annual income tax withheld each period. Difference settled at tax time.
Select the question that matches where you are right now.
PAYG withholding is the amount your employer deducts from each pay and sends to the ATO on your behalf. It is an estimate of your income tax liability — any difference between amounts withheld and actual tax owed is settled at tax time.
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Not professional financial advice, not a guarantee of any specific outcome, and not a substitute for qualified advice for significant decisions.
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How PAYG withholding is calculated in Australia
Weekly vs fortnightly vs monthly
PAYG withholding is calculated based on the annualised equivalent of each pay period. A weekly salary of $1,923 is annualised to $100,000 and taxed accordingly. The ATO provides withholding tables and a tax withheld calculator for each payment frequency.
| Annual salary | Monthly withholding | Fortnightly | Weekly |
|---|---|---|---|
| $50,000 | $700 | $350 | $175 |
| $70,000 | $1,192 | $596 | $298 |
| $80,000 | $1,492 | $746 | $373 |
| $100,000 | $2,183 | $1,092 | $546 |
| $120,000 | $2,775 | $1,388 | $694 |
How tax offsets reduce PAYG withholding
Low Income Tax Offset (LITO)
Employees earning below ~$66,667 receive a reduction in withholding equal to the LITO value (up to $700/year, or $13.46/week). This is automatically applied when you claim the tax-free threshold on your TFN declaration.
Claiming the tax-free threshold
If you have one job, you should claim the tax-free threshold on your TFN declaration with your primary employer. This reduces withholding significantly for low and middle incomes. Do not claim the threshold from a second employer or the ATO will under-withhold.
HECS/HELP additional withholding
How HECS is withheld
If you declare an active HECS-HELP debt on your TFN declaration, your employer increases withholding by the applicable HECS repayment rate on top of your regular income tax. At $90,000 income: standard withholding is approximately $1,900/month; with HECS (3.75%), an additional $281/month is withheld.
End of year reconciliation
If your employer withholds too much or too little HECS during the year (e.g., you changed jobs or income changed mid-year), the correct amount is calculated and reconciled in your tax return.
Withholding when no TFN is provided
The no-TFN withholding rate
If an employee or contractor does not provide their Tax File Number (TFN) to their employer, the employer must withhold at the top marginal rate plus Medicare levy: currently 47% of the total payment. This is regardless of the employee's actual tax bracket.
Fixing a no-TFN situation
Once the employee provides their TFN, normal withholding resumes. The excess withheld in prior periods is reconciled in the employee's tax return as a credit. The ATO will refund any over-withheld amounts.
❓ Frequently asked Frequently asked questions
What is PAYG withholding?
PAYG (Pay As You Go) withholding is the tax your employer deducts from your gross pay and sends to the ATO. It is an estimate of your income tax liability for the year. Any difference between amounts withheld and your actual tax bill is settled when you lodge your tax return.
Should I claim the tax-free threshold?
Yes — if this is your primary (or only) job, you should claim the tax-free threshold on your TFN declaration with that employer. This significantly reduces withholding for incomes below $66,667. Do not claim the threshold from two employers simultaneously, or you will end up with a tax debt at year end.
What happens if I have two jobs?
Claim the tax-free threshold from your primary (higher paying) employer only. Your second employer must withhold at the no tax-free threshold rate. This prevents under-withholding — if each employer withheld as if you had only one income, the combined withholding would be too low.
What is the withholding rate if I don't provide my TFN?
If you do not provide your TFN to your employer, they must withhold at 47% (the top marginal rate plus Medicare levy) of the total payment, regardless of your actual income.
Where these figures come from
Every threshold and tax rate on this page is taken from the Australian Taxation Office (ATO) — the source of record for Australian income tax, Medicare levy, HECS/HELP repayment, and capital gains tax.
- Individual income tax rates (2025–26, Stage 3) — ATO — Individual income tax rates.
- Medicare levy & surcharge — ATO — Medicare levy.
- HECS/HELP repayment thresholds — ATO — Study and training support loans.
- Capital gains tax rules — ATO — Capital gains tax.
- GST rules — ATO — GST.
- Tax offsets & LITO/LMITO — ATO — Tax offsets.
Last checked: April 2026. Rates and thresholds are reviewed against the source of record each November, when annual adjustments for the following tax year are published.