Calculate exactly how much PAYG tax to withhold from any employee's wages. Covers all residency types, pay frequencies, Medicare levy, HECS/HELP and LITO — using FY2025-26 ATO Schedule 1 rates. Free, instant, no login required.
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Enter your gross income above to see the full breakdown
Estimate only based on ATO Schedule 1 FY2025-26. Does not account for salary sacrifice, FBT or other adjustments. Verify with your payroll software.
Scale 2 (Threshold claimed): Most employees — Australian residents who claim the tax-free threshold on their TFN declaration.
Scale 4 (No threshold): Residents who don't claim it (e.g. second job).
Scale 3 (Foreign resident): No tax-free threshold, no LITO, no Medicare.
Scale 6 (Working holiday): 15% flat on first $45,000, then resident rates.
Compulsory repayments begin when income exceeds $54,435 (FY2025-26). Rates run from 1% at the entry threshold up to 10% above $150,901. Employers withhold alongside PAYG and remit to the ATO. Under or over payments are corrected at tax return time.
Australian residents pay 2% Medicare levy, included in PAYG withholding. It phases in for low-income earners below ~$26,000. Exemptions apply to certain visa holders and those with a medical certificate. Foreign residents and WHMs pay 0%.
| Taxable Income | Tax on this bracket | Marginal rate |
|---|---|---|
| $0 – $18,200 | Nil | 0% |
| $18,201 – $45,000 | 16c for each $1 over $18,200 | 16% |
| $45,001 – $135,000 | $4,288 + 30c for each $1 over $45,000 | 30% |
| $135,001 – $190,000 | $31,288 + 37c for each $1 over $135,000 | 37% |
| $190,001+ | $51,638 + 45c for each $1 over $190,000 | 45% |
Plus 2% Medicare levy. LITO (max $700) reduces tax for incomes under $66,667. Source: ATO Schedule 1 (Stage 3 tax cuts).
Annualise the employee's gross pay, apply the ATO Schedule 1 tax scale for their residency type (resident with threshold, resident without threshold, foreign resident, or working holiday maker), add the 2% Medicare levy where applicable plus any HECS/HELP repayment, then divide the annual total back to the pay period. This calculator does all steps automatically using the exact FY2025-26 ATO formulas.
Scale 2 applies to Australian residents who claim the tax-free threshold ($18,200) on their TFN declaration — this is most employees. Scale 4 applies to residents who do not claim the threshold, typically those with a second job. Scale 4 withholds more tax from the first dollar of income since no tax-free threshold is applied.
Yes, for Australian residents. The Medicare levy is 2% of taxable income and is built into the PAYG withholding calculation. The levy phases in for low-income earners below approximately $26,000. Foreign residents and working holiday makers are exempt from the Medicare levy entirely.
When an employee notifies their employer of a HECS/HELP debt on their TFN declaration, the employer withholds an additional amount each pay period. Compulsory repayments start once annual income exceeds $54,435 in FY2025-26, with rates from 1% to 10% depending on income. Enable the HECS/HELP toggle in the calculator to see the exact additional amount.
Working holiday makers on 417 or 462 visas are taxed at a flat 15% on their first $45,000 of Australian income, then standard resident rates apply above $45,000. They are not entitled to the tax-free threshold, LITO, or the Medicare levy exemption.
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OrtúsPro Global's outsourced payroll service handles PAYG withholding, STP Phase 2, super remittance and ATO correspondence.