Free PAYG withholding calculator for Australian employers. Calculate the correct amount of tax to withhold from employee wages based on ATO tax tables for FY 2024-25 and 2025-26. Supports tax-free threshold claims, HELP/HECS debt, and all pay frequencies.
Tax to Withhold
$0.00
Per fortnightly pay period
Net Pay
$0.00
Effective rate: 0.0%
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As an employer, you're required to withhold tax from payments to employees under the PAYG withholding system. The amount to withhold is determined by the ATO's tax tables, which take into account the employee's income level, residency status, tax-free threshold claim, and any HELP debt.
The ATO publishes weekly, fortnightly, and monthly tax tables that show exactly how much to withhold for each income range. Our calculator uses the official marginal rate formula to calculate withholding, which closely matches the published tax table amounts.
The method behind the tax tables, in plain terms:
Annual tax = income tax on the annualised gross (using the FY 2025-26 resident brackets) − Low Income Tax Offset (LITO) + 2% Medicare levy + any HELP/STSL repayment. Withholding for the period = annual tax ÷ number of pay periods in the year (52 weekly, 26 fortnightly, 12 monthly).
The FY 2025-26 resident rates are: nil up to $18,200; 16% from $18,201 to $45,000; 30% from $45,001 to $135,000; 37% from $135,001 to $190,000; and 45% above $190,000. Where no TFN is quoted, you instead withhold a flat 47% on every dollar.
An employee earns $1,500 gross per week and claims the tax-free threshold, with no HELP debt. Annualised, that is $1,500 × 52 = $78,000. Using the FY 2025-26 brackets, income tax on $78,000 is $4,288 + 30% of ($78,000 − $45,000) = $4,288 + $9,900 = $14,188 before offsets. After applying LITO and adding the 2% Medicare levy, the calculator divides the result across 52 weekly pay periods to produce the amount to withhold each week. Switching the pay frequency to fortnightly or monthly re-divides the same annual tax across 26 or 12 periods.
Report amounts withheld on your BAS at label W1 (total salary/wages paid) and W2 (total amount withheld). At the end of the financial year, you also need to complete payment summaries for each employee and lodge an annual PAYG withholding report.
Take the employee's gross pay for the period, identify whether they claim the tax-free threshold and whether they have a HELP debt, then look up the withholding amount in the ATO weekly, fortnightly, or monthly tax table for that scale. The table figure is the tax to withhold; you pay the employee the net difference and remit the tax to the ATO. This calculator does the lookup for you by annualising the pay, applying the FY 2025-26 marginal rates, LITO, and Medicare levy, then converting back to the pay period.
PAYG (Pay As You Go) withholding is the system where employers withhold tax from payments to employees and send it to the ATO. The amount withheld depends on the employee's income level, whether they claim the tax-free threshold, and whether they have a HELP debt.
If an employee doesn't provide a Tax File Number (TFN) within 28 days of starting work, you must withhold tax at the top marginal rate of 47% (including Medicare levy) from every dollar of their pay. No tax-free threshold applies.
Most small to medium employers remit PAYG withholding quarterly through their BAS. Large employers (withholding $25,000+ per month) remit monthly. The ATO notifies you of your reporting cycle.
Generally no, unless the contractor doesn't quote an ABN. If no ABN is quoted, you must withhold 47% from the payment. Contractors manage their own tax obligations.
When an employee claims the tax-free threshold on their TFN declaration, the first $18,200 of annual income is tax-free, so less is withheld each pay. Employees should only claim it from one employer at a time — usually the one paying the highest, most regular income — to avoid a tax bill at year end.
Sources & methodology
This calculator estimates PAYG withholding by annualising the gross pay for the chosen frequency, applying the ATO's marginal resident (or no-tax-free-threshold) rates, the low income tax offset, the Medicare levy, and any HELP/HECS repayment for the selected FY (default FY 2025-26), then converting back to the pay period — 47% is withheld where no TFN is provided. Figures are computed in your browser and closely match the ATO's published tax tables.
Authoritative sources
Reviewed by Bishal Shrestha — Founder of OneBookPlus, 10+ years building tools with Australian tax-agent and BAS-agent practices. Last reviewed and updated: May 2026.
Disclaimer: This calculator produces estimates only and is not tax advice. Tax outcomes depend on your individual circumstances. For decisions that affect your tax position, consult a registered tax agent or the ATO directly.
OneBookPlus handles invoicing, GST tracking, BAS prep, and ATO lodgement automatically.