PAYG Withholding Calculator Australia 2026-27
Calculate your PAYG withholding tax for any pay frequency using the official ATO 2026-27 brackets. Covers income tax, Medicare levy (2%) and the Low Income Tax Offset (LITO). Works as a PAYG tax calculator, ATO PAYG calculator, and PAYG withholding estimator.
Total PAYG Withholding
$17,720
per year
Annual gross: $85,000
Annual net (after PAYG): $67,280
Effective rate: 20.85%
Frequently Asked Questions
What is PAYG withholding?
PAYG (Pay As You Go) withholding is the tax your employer deducts from your wages each pay period and sends to the ATO on your behalf. When you lodge your tax return, the ATO reconciles your actual tax liability against what was withheld — giving you a refund if too much was withheld, or a bill if too little was.
How is PAYG withholding calculated in Australia?
Your employer annualises your income, applies the resident tax brackets, subtracts the Low Income Tax Offset (LITO), adds the 2% Medicare levy, then divides by the number of pay periods. The result is your PAYG withholding per period.
What is the difference between PAYG withholding and PAYG instalments?
PAYG withholding is deducted by your employer from wages. PAYG instalments are quarterly payments you make yourself if you earn income not subject to withholding — such as business income, investment income, or rental income.
Can my employer withhold too little PAYG tax?
Yes. If you have multiple jobs, significant investment income, or haven't updated your TFN declaration, your employer may withhold too little. You can ask for extra withholding by requesting a variation from the ATO.
What is the ATO PAYG tax calculator?
The ATO provides withholding tables and an online calculator for employers. This page replicates those calculations using the official 2026-27 brackets, LITO, and Medicare levy thresholds.