PAYG Withholding Calculator
Estimate the PAYG tax an Australian employer should withhold from a resident employee's pay each period, based on ATO tax brackets.
Your results
Actual payroll withholding uses ATO withholding schedules, which round slightly differently to this bracket-based estimate.
Calculation breakdown
- Annualise
- Annual income = pay per period × pay periods per year
- Tax
- Tax = resident bracket tax + estimated Medicare levy
- Per period
- Withholding = annual tax ÷ pay periods per year
Worked example
A worker paid $2,000 gross fortnightly earns $52,000 a year. Applying the 2026–27 resident tax brackets and Medicare levy estimate gives roughly $7,160 annual tax, or about $275 withheld each fortnight.
Assumptions
- Assumes the tax-free threshold is claimed with a single employer.
- Uses annual resident tax brackets and the single-person Medicare levy estimate.
- Does not replicate exact ATO withholding schedule rounding.
Sources
Rates effective 1 July 2026.
How this calculator works
This calculator estimates the Pay As You Go (PAYG) withholding amount an employer would take from a resident employee's gross pay. It annualises the pay period, applies the resident tax brackets and the Medicare levy, then converts the annual withholding back to the chosen pay frequency. Treat it as an estimate only, since real payroll uses ATO withholding schedules that round differently.
Rates sourced from the Australian Taxation Office for the 2026–27 financial year. Last reviewed 14/08/2026.
Frequently asked questions
Is this the exact amount my employer will withhold?
No. The ATO uses published withholding schedules with their own rounding, which can differ slightly from this bracket-based estimate.
Does this include the Medicare levy?
Yes, a standard 2% Medicare levy is added on top of income tax, with no exemptions or reductions modelled.
Does it account for the tax-free threshold?
Yes, it assumes the tax-free threshold is claimed, which is the most common payroll setting for a primary employer.
Editorial review and responsibility
Reviewed by the CalcAussie editorial team on 21 September 2026. Review scope: Method, Australian terminology, material assumptions, source links and user-facing limitations.
Calculator results remain estimates based on the figures entered. Check material decisions against current official information and report a suspected error so it can be reproduced and corrected.
Rates and thresholds are configured for the 2026–27 Australian financial year and should be reviewed when government settings change.