PAYG Withholding Calculator
Work out exactly how much tax to withhold from an employee's pay. Updated for the 2026-27 ATO withholding schedules.
- Withholding is calculated per pay event. The schedules annualise each payment, so irregular pay can withhold more than the annual tax due.
- If an employee doesn't provide a TFN, you must withhold at the top rate of 47% from every dollar.
| Weekly | Fortnightly | Annually | |
|---|---|---|---|
| Gross pay | $1,800 | $3,600 | $93,600 |
| Income tax | −$358 | −$715 | −$18,600 |
| Medicare levy | −$36 | −$72 | −$1,872 |
| Take-home pay | $1,406 | $2,813 | $73,128 |
Tax bracket breakdown
| Bracket | Rate | Taxable | Tax |
|---|---|---|---|
| $0 – $18,200 | 0% | $18,200 | $0 |
| $18,200 – $45,000 | 15% | $26,800 | $4,020 |
| $45,000 – $135,000 | 30% | $48,600 | $14,580 |
| Income tax | $18,600 |
Tax by bracket
Where your gross goes
- Take-home pay78%
- Income tax20%
- Medicare levy2%
Weekly vs fortnightly withholding
The same salary produces slightly different withholding depending on pay frequency, because the ATO rounds each schedule separately. On a $90,000 salary the difference is small but real, and it always evens out at tax time.
What is PAYG withholding?
PAYG withholding is the system that requires employers to take tax out of payments to workers and send it to the ATO. If you pay wages, you must register, withhold the right amounts, report through Single Touch Payroll each payday, and remit the withheld tax to the ATO.
- Register first, before the first payment to any employee
- Withhold per the schedules: the amount depends on pay, frequency and the employee's TFN declaration
- Report and remit through STP each payday; payment is monthly or quarterly depending on size
The amounts come from the ATO's withholding schedules. See how PAYG is calculated and the 2026-27 tax tables for the underlying maths, or the complete withholding guide for registration details.
Withholding rate scales 2026-27
Tax-free threshold claimed
| $0 – $18,200 | 0% |
| $18,201 – $45,000 | 15% |
| $45,001 – $135,000 | 30% |
| $135,001 – $190,000 | 37% |
| $190,000+ | 45% |
No threshold / no TFN
| No threshold: $0 – $45,000 | 15% |
| $45,001 – $135,000 | 30% |
| $135,001+ | 37–45% |
| No TFN provided (resident) | 47% |
| No TFN provided (foreign) | 45% |
Do you need to withhold?
You MUST withhold from
- Salary, wages, allowances and bonuses paid to employees
- Directors' fees and payments to office holders
- Payments to workers who don't quote an ABN
- Termination payments and unused leave payouts
You do NOT withhold from
- Payments to genuine contractors quoting an ABN
- Reimbursements of actual business expenses
- Payments to suppliers for goods and services
- Super guarantee contributions (paid to the fund, not the worker)
Withholding at common salaries
Resident employees claiming the tax-free threshold, no HELP debt, using 2026-27 scales including Medicare levy.
| Annual salary | Weekly gross | Weekly withheld | Weekly net | Annual withheld |
|---|---|---|---|---|
| $45,000 | $865 | $88 | $777 | $4,595 |
| $55,000 | $1,058 | $153 | $905 | $7,945 |
| $65,000 | $1,250 | $217 | $1,033 | $11,295 |
| $75,000 | $1,442 | $279 | $1,163 | $14,520 |
| $85,000 | $1,635 | $341 | $1,294 | $17,720 |
| $95,000 | $1,827 | $402 | $1,425 | $20,920 |
| $110,000 | $2,115 | $495 | $1,621 | $25,720 |
| $135,000 | $2,596 | $648 | $1,948 | $33,720 |
| $160,000 | $3,077 | $836 | $2,241 | $43,470 |
Figures are annual liabilities divided across 52 weeks; per-payday schedule amounts vary by a few dollars due to ATO rounding.
Employee has a HELP debt or no TFN?
Two situations change the standard withholding amounts:
- HELP/HECS debt declared: add the study-loan component on top of tax: nothing below $69,528, 15c per dollar to $129,717, 17c above. The employee declares the debt on their TFN declaration.
- No TFN within 28 days: withhold at 47% (resident) or 45% (foreign resident) from every dollar with no threshold and no exceptions.
Both cases are handled by the calculator above. Tick the HELP option or compare with the no-threshold scale.
Frequently asked questions
How much tax do I withhold from a $1,500 weekly wage?
When do I have to register for PAYG withholding?
How often do I pay withheld amounts to the ATO?
What happens if I withhold too much?
What if I fail to withhold?
Do I withhold from contractors?
Is withholding the same as the employee’s final tax?
Narelle Hartigan is a CPA-qualified tax accountant with over a decade of experience in Australian personal taxation and payroll. She founded PAYG Calculator Australia to make tax withholding easy for every Australian worker to understand.