PAYG Withholding Calculator Australia
Estimate how much tax an employer withholds from each Australian pay run under ATO PAYG Schedule 1. Compare claiming versus not claiming the $18,200 tax-free threshold, and see withholding with Medicare levy and HELP/HECS.
Paid by your employer on top of your salary — not deducted from your pay. Total package: $106,400.00.
| Pay period | Gross income | Take-home pay | Employer super |
|---|---|---|---|
| Annual | $95,000.00 | $74,080.00 | $11,400.00 |
| Monthly | $7,916.67 | $6,173.33 | $950.00 |
| Fortnightly | $3,653.85 | $2,849.23 | $438.46 |
| Weekly | $1,826.92 | $1,424.62 | $219.23 |
Estimated PAYG Withholding per Pay Run
| Pay run | Income tax | Medicare | HELP | Total withheld |
|---|---|---|---|---|
| Weekly (52 runs) | $365.77 | $36.54 | $0.00 | $402.31 |
| Fortnightly (26 runs) | $731.54 | $73.08 | $0.00 | $804.62 |
| Monthly (12 runs) | $1,585.00 | $158.33 | $0.00 | $1,743.33 |
How Your Pay Is Calculated
- 1.Annualise Gross Pay: Convert your pay cycle amount to annual gross salary using your weekly hours and paid weeks.
- 2.Deduct Pre-Tax Items: Subtract salary sacrifice to super and eligible work deductions to find taxable income.
- 3.Apply ATO Tax Brackets: Calculate marginal income tax for FY 2026–27 and apply LITO if eligible.
- 4.Medicare & HELP: Subtract the 2% Medicare levy and marginal HELP/HECS repayment to arrive at net take-home pay.
- 5.Employer Super (12%): Calculated separately on Ordinary Time Earnings and paid to your super fund.
PAYG withholding is a per-run estimate, not your final annual tax. Unticking "claim tax-free threshold" raises withholding (Scale 1) for second jobs, but the annual assessment still applies the threshold once across your total income.
What PAYG Withholding Actually Is
Pay As You Go withholding is the system where employers collect an estimate of your annual tax from every pay run and remit it to the ATO. Each run annualises that period’s earnings — so an unusually large paycheck withholds as if you earned that amount all year.
Claiming vs Not Claiming the Tax-Free Threshold
Residents normally claim the $18,200 tax-free threshold from their main employer only. If you mark a second job "no tax-free threshold", withholding applies Scale 1 from the first dollar — which is why the comparison below shows a noticeably lower per-run net.
Frequently Asked Questions
Why was so much tax withheld from my bonus pay run?+−
PAYG withholding annualises the payslip: a $2,000 bonus week is treated as a ~$104,000/year salary for that run, so withholding jumps to a higher marginal slice even though your annual bill is unchanged.
Is over-withheld tax refunded?+−
Yes — excess withholding is refunded after you lodge your annual tax return, once the ATO assesses your actual liability on total income minus deductions.
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How employers estimate and remit your income tax from every paycheck under the ATO PAYG system — and why withholding is not your final tax.
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