PAYG Withholding Calculator Australia
Calculate how much PAYG tax should be withheld from your pay each period. Enter weekly, fortnightly, or monthly gross pay to estimate withholding using current ATO tax tables.
Based on 2025–26 ATO tax rates. Your actual withholding may vary slightly due to rounding in ATO tables.
Most people claim this from one employer
Enter your gross pay to calculate withholding
How PAYG withholding works
When you start a job, you complete a TFN declaration telling your employer:
- Your tax file number (TFN)
- Whether you're claiming the tax-free threshold
- Whether you have a HELP, VSL, or other study debt
Your employer uses this information along with ATO tax tables to calculate how much to withhold from each pay. They send this money to the ATO on your behalf throughout the year.
Tax-free threshold explained
The tax-free threshold means the first $18,200 of your annual income is tax-free. When you claim the threshold, your employer withholds less tax because they account for this tax-free amount.
When to claim the tax-free threshold
- One job: Always claim it
- Multiple jobs: Only claim from your main (highest-paying) employer
- Second job: Don't claim it — you'll already be using the threshold elsewhere
Warning: If you claim the tax-free threshold from multiple employers, you'll likely end up with a tax bill at the end of the year. Each employer assumes you'll earn the threshold tax-free, resulting in under-withholding.
PAYG withholding tables
The ATO publishes detailed withholding tables that employers use. Here's an example of approximate withholding amounts for common fortnightly pay levels (claiming tax-free threshold, no HELP):
| Fortnightly Gross | Annual Equivalent | Tax Withheld | Net Pay |
|---|---|---|---|
| $2,000 | $52,000 | ~$324 | ~$1,676 |
| $2,500 | $65,000 | ~$474 | ~$2,026 |
| $3,000 | $78,000 | ~$624 | ~$2,376 |
| $3,500 | $91,000 | ~$774 | ~$2,726 |
| $4,000 | $104,000 | ~$924 | ~$3,076 |
Amounts are approximate. Actual withholding uses detailed ATO tables with specific amounts for each dollar of income.
HELP/HECS withholding
If you have a HELP debt and tick the box on your TFN declaration, your employer will withhold additional amounts once your income exceeds the threshold.
From 2025-26, HELP uses a marginal rate system:
- $0 – $67,000: No withholding
- $67,001 – $125,000: 15% on income above $67,000
- $125,001 – $179,285: $8,700 + 17% on income above $125,000
- $179,286+: 10% of total income
FAQ
What is PAYG withholding?
PAYG (Pay As You Go) withholding is the tax your employer deducts from your wages and sends to the ATO. It's calculated each pay period based on your annualised income and TFN declaration.
What is the tax-free threshold?
The tax-free threshold is $18,200 of annual income on which you pay no tax. When you claim it from an employer, they withhold less tax to account for this amount.
Why is my actual pay different from this calculator?
ATO tax tables use specific lookup values for each pay amount, with built-in rounding. This calculator uses the underlying tax formulas, so small differences are normal.
Should I claim the tax-free threshold from both jobs?
No. Only claim the tax-free threshold from one employer (usually your main job). Claiming it from both will result in under-withholding and a tax bill at the end of the year.
How do I change my PAYG withholding?
Complete a new TFN declaration form with your employer. You can also ask the ATO to vary your withholding if you have deductions or expect a different tax outcome.
Tax Accuracy & Sources
Estimates PAYG withholding from pay inputs using current tax settings. Employers may apply table rounding and payroll-specific rules that create small differences.
Uses 2025-26 ATO rates.
Need the payroll paperwork behind the withholding estimate?
After you estimate PAYG withholding, move into payslips, timesheets, expense claims, and follow-up payroll records. This is the clearest next step for payroll operations traffic.