Calculator
PAYG Withholding Calculator Australia
Estimate the income tax your employer withholds each pay period - and why it can look high.
Short answer
PAYG withholding is the income tax your employer deducts each pay and sends to the ATO. The amount depends on your gross pay, pay cycle, residency, whether you claim the $18,200 tax-free threshold and any study loan above $69,528. Without a TFN, withholding is at the top rate of 47%.
Withheld per fortnight
$620.00
Withheld per year
$16,120
Effective 20.2%
This is an annualised estimate. Employers use ATO withholding schedules with rounding, so your actual per-pay figure can differ by a few dollars. Not claiming the threshold or omitting your TFN raises withholding.
Why your PAYG can look high
Withholding is calculated as if each pay continues all year. A one-off bonus or extra hours can over-withhold, and not claiming the tax-free threshold raises the rate. You may get some back at tax time.
TFN declaration matters
Lodging a TFN declaration lets your employer use normal rates and apply the tax-free threshold. Without it, the no-TFN rate of 47% applies. Australia does not use UK-style tax codes - see tax codes explained.
Frequently asked questions
Is PAYG the same as my final tax?+
No. PAYG is an estimate withheld during the year. Your final tax is worked out when you lodge your return, and you may receive a refund or owe more.
What is the no-TFN withholding rate?+
If you have not provided a TFN, residents are withheld at 47%. Lodge a TFN declaration to be taxed at normal rates.
Why does my fortnightly tax differ from this?+
Employers use rounded ATO withholding tables. This tool annualises the calculation, so it can differ by a few dollars per pay.
Sources & methodology
- ATO - Personal income tax: new tax cuts (15% rate from 1 July 2026)
- Income Tax Rates Act 1986 (legislation.gov.au)
- ATO - Study and training loan repayment thresholds and rates
- ATO - Super guarantee
- ATO - Contribution caps
- ATO - Payday Super and the annual maximum contribution base
- ATO - Medicare levy
- ATO - Medicare levy surcharge income thresholds and rates
- Fair Work Ombudsman - Pay slips
- How we calculate these estimates
Last updated 13 August 2026. Figures use the 2026-27 financial year.
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