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PAYG Tax Withheld Calculator Australia

Calculate how much PAYG tax should be withheld from wages for any pay period. Based on 2025–26 ATO withholding tables. For employers processing payroll and employees checking their payslips.

2025–26 ATO Rates All pay periods Includes Medicare levy LITO included
💰 PAYG Withholding Calculator 2025–26
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Tax to Withhold This Pay Period
$0
Gross pay
$0
Net take-home
$0
Annual tax withheld
$0
Effective rate
0%

What Is PAYG Withholding?

PAYG (Pay As You Go) withholding is a system where employers collect income tax from employees' wages on behalf of the ATO throughout the year. The amounts withheld are sent to the ATO and credited against the employee's final tax liability when they lodge their annual tax return.

Getting withholding right matters: under-withholding leaves employees with an unexpected tax bill at tax time, while over-withholding means they've given the ATO an interest-free loan for the year. Correct withholding means a small refund or small bill — neither a shock.

Which Scale Applies to Your Employee?

  • Scale 1 (most common): Australian tax residents who have lodged a valid TFN declaration with their employer. Standard tax brackets apply.
  • Scale 2 (no TFN): Residents who have not provided their TFN. The top marginal rate of 47% applies to all income (income tax + Medicare levy).
  • Scale 3 (non-residents): Foreign residents for tax purposes. No tax-free threshold or LITO. Rates start at 32.5%.
  • Scale 4 (working holiday makers): Workers on a 417 or 462 visa. 15% on the first $45,000, then standard rates above that.

2025–26 Resident Tax Brackets (Scale 1)

Taxable IncomeRateTax on This Band
$0 – $18,2000%Nil
$18,201 – $45,00016%Up to $4,288
$45,001 – $135,00030%Up to $27,000
$135,001 – $190,00037%Up to $20,350
$190,001+45%—

Plus: 2% Medicare levy (above low-income threshold). LITO reduces tax by up to $700.

How to Use This Calculator

  1. Select the pay period — weekly, fortnightly, monthly, or annual.
  2. Enter the gross pay for that period (before any tax or super is deducted).
  3. Select the withholding scale — Scale 1 is correct for most Australian resident employees with a TFN on file.
  4. Medicare exemption — most employees pay the full 2%. Only select an exemption if the employee has an ATO exemption certificate.
  5. Click Calculate and the result shows how much to withhold from that pay run.

Note: This calculator does not account for HECS/HELP debt repayments, salary sacrifice arrangements, multiple jobs, or other adjustments. For complex situations, use the ATO's official Tax Withheld Calculator or consult your payroll software.

Frequently Asked Questions

How do I calculate PAYG withholding for my employee? ▾
The ATO method: multiply the weekly pay by 52 to get the annual equivalent income, apply the tax brackets for that income level (including Medicare levy and LITO), then divide the annual tax by 52 to get the weekly withholding amount. Our calculator does this automatically. For fortnightly pay, multiply by 26; for monthly, multiply by 12.
What happens if I withhold too little? ▾
If you withhold too little from an employee, the employee will owe the difference when they lodge their tax return. Employers who consistently under-withhold may also face scrutiny from the ATO. If an employee has multiple jobs, they may choose to withhold more from one of their employers to avoid a tax bill — they can request this by adjusting their TFN declaration.
Does PAYG withholding include superannuation? ▾
No. PAYG withholding is tax only — it does not include the 11.5% superannuation guarantee (SG) contribution. Super is paid separately by the employer on top of wages and is not deducted from the employee's pay. You withhold PAYG from the gross wage, then pay the SG contribution on top of that gross wage.
Do I withhold PAYG from contractor payments? ▾
Generally no — contractors are responsible for their own tax. However, if a contractor does not provide their ABN on their invoice, you are required to withhold 47% (top rate) from the payment and remit it to the ATO. This is called "no-ABN withholding." If a contractor has a PAYG voluntary agreement in place, you can also withhold for them — but this is optional and must be mutually agreed.
How often do I need to pay PAYG withholding to the ATO? ▾
Your payment frequency depends on your total annual withholding. Small withholders (less than $25,000 per year) pay quarterly through their BAS. Medium withholders ($25,000 to $1 million) pay monthly. Large withholders (over $1 million) pay the ATO within a few days of each payroll run. Your classification is set by the ATO when you register for PAYG withholding and can change as your business grows.

Disclaimer: This calculator uses 2025–26 ATO tax brackets and withholding parameters. Results are estimates and may differ from your payroll software output due to rounding rules, HECS/HELP repayments, or other adjustments. Always verify with the ATO's official Tax Withheld Calculator or a registered BAS/tax agent.

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