PAYG withholding calculator 2026–27
On a fortnightly pay of $3,461.54 ($90,000 a year), your employer withholds $744 of tax if you claim the tax-free threshold. Over a year that is $19,344, against $19,000 actually due, so about $344 comes back at tax time.
How the withholding formula works
The ATO's Schedule 1 sets the tax to withhold as y = a × x − b, where x is your weekly earnings in whole dollars plus 99 cents, and a and b depend on which band x falls in. The result is rounded to the nearest dollar.
- Fortnightly pay: halve it, work out the weekly amount and double it.
- Monthly pay: multiply by 3 and divide by 13 (adding 1c first if the pay ends in 33c), work out the weekly amount, then multiply by 13 and divide by 3.
- Scale 2 includes the Medicare levy; tax offsets you claim on a withholding declaration reduce it further.
Scale 2 coefficients from 1 July 2026
| Weekly earnings (x) | a | b |
|---|---|---|
| Less than $362 | nil | |
| $362 to less than $538 | 0.1500 | 54.3462 |
| $538 to less than $673 | 0.2500 | 108.2135 |
| $673 to less than $721 | 0.1700 | 54.3473 |
| $721 to less than $865 | 0.1790 | 60.8377 |
| $865 to less than $1,282 | 0.3227 | 185.1935 |
| $1,282 to less than $2,596 | 0.3200 | 181.7319 |
| $2,596 to less than $3,653 | 0.3900 | 363.4627 |
| $3,653 and over | 0.4700 | 655.7704 |
Withheld vs tax actually due
| Salary | Withheld a fortnight | Withheld a year | Tax + Medicare due | Refund |
|---|---|---|---|---|
| $50,000 | $250 | $6,500 | $5,935 | $565 |
| $70,000 | $498 | $12,948 | $12,600 | $348 |
| $90,000 | $744 | $19,344 | $19,000 | $344 |
| $120,000 | $1,114 | $28,964 | $28,600 | $364 |
| $150,000 | $1,524 | $39,624 | $39,180 | $444 |
| $200,000 | $2,304 | $59,904 | $59,400 | $504 |
The 2026–27 schedules only reflect the 15% rate. The $1,000 standard deduction is not built in, so most employees will see a small refund from it when they lodge. The standard scales don't include the Medicare levy surcharge either.
Study loans
If you have a HELP or other study loan, Schedule 8 adds a second amount using the same x. It is nil below $1,337 a week when you claim the tax-free threshold. On $90,000 it adds $118 a fortnight. See the HELP repayment calculator.
Which scale applies
- Scale 2: you claim the tax-free threshold from this employer (normally your main job).
- Scale 1: you don't claim it, for example in a second job. More is withheld because the threshold is used elsewhere.
- Scale 3: foreign residents, from 30% of each dollar.
- Working holiday makers have their own schedule, which is not covered here.
FAQ
Why is more tax withheld than I owe?
Withholding schedules are built to cover the year's tax without the $1,000 standard deduction, which only applies when your return is assessed. On $90,000 that leaves about $344 to come back.
Should I claim the tax-free threshold?
Claim it from one employer only, usually the one that pays you most. If you claim it from two, too little tax is withheld and you will have a bill at tax time.
Does PAYG withholding include the Medicare levy?
Yes. Scales 1 and 2 include it, so the amount withheld covers income tax and the Medicare levy together. Scale 3, for foreign residents, does not include it.
When did the new withholding rates start?
For payments made from 1 July 2026, under the Taxation Administration (Withholding Schedules) Instrument 2026. In 2025–26 the same $3,461.54 fortnightly pay had $754 withheld.