Weekly Tax Table 2025–26 (2026) | ATO PAYG Withholding Rates

The weekly tax table is the most commonly used PAYG withholding reference in Australia. If you are paid weekly, your employer uses this table to determine how much income tax (plus Medicare levy) to withhold from each pay before depositing the remainder into your bank account. The table below reflects the 2025–26 financial year tax rates, which apply from 1 July 2025. It assumes you are an Australian resident for tax purposes and have claimed the tax-free threshold on your TFN declaration.

Whether you are a full-time employee, part-time worker, or casual earning weekly pay, this table gives you a quick reference for your approximate take-home pay.

Weekly withholding checks are especially useful for casual, shift-based, and labour-hire roles where hours can move around each week. When overtime or penalty rates change your gross pay, the weekly table helps you spot-check whether your payslip withholding is moving in roughly the right direction.

Weekly Tax Table 2025–26

The following table shows the approximate PAYG withholding for Australian residents who have claimed the tax-free threshold. Amounts include the 2% Medicare levy. They do not include HELP/HECS repayments or the Medicare levy surcharge.

Withholding figures are calculated using the 2025–26 marginal tax rates, 2% Medicare levy, and the low income tax offset (LITO). Actual ATO withholding may differ slightly due to rounding conventions and LITO adjustments in the official Schedule 1 coefficients.

Note: These figures are approximate and are calculated by applying the 2025–26 marginal tax rates, 2% Medicare levy, and low income tax offset (LITO) to the annualised weekly earnings, then dividing by 52. The official ATO weekly tax table (NAT 1005) uses Schedule 1 coefficient formulas that may produce slightly different rounding. Always refer to the ATO’s published table for payroll purposes. For incomes below approximately $33,000, the actual Medicare levy may be reduced or eliminated under the low-income threshold rules, resulting in a smaller tax bill at lodgement.

How to Read the Weekly Tax Table

Using the weekly tax table is straightforward. Follow these steps:

1. Find your weekly gross pay. This is your total pay before any deductions — the amount your employer calculates based on your salary or hourly rate multiplied by hours worked. It includes overtime, allowances, and any bonuses paid in that week.

2. Locate the nearest row. If your exact gross pay is not listed, round down to the nearest amount shown in the table. For example, if you earn $1,175 per week, use the $1,150 row as a minimum guide.

3. Read the withholding amount. The “Tax Withheld” column shows the approximate amount your employer deducts for PAYG income tax and Medicare levy combined.

4. Calculate your take-home pay. Subtract the withholding from your gross pay. The result is your approximate net pay deposited into your bank account.

Worked Example: $1,200 Per Week

Sarah earns a gross salary of $1,200 per week ($62,400 per year). She has claimed the tax-free threshold and has no HELP debt.

• Annual income tax: The first $18,200 is tax-free. The next $26,800 (from $18,201 to $45,000) is taxed at 16% = $4,288. The remaining $17,400 (from $45,001 to $62,400) is taxed at 30% = $5,220. Total income tax = $9,508.
• Medicare levy: 2% of $62,400 = $1,248.
• Low income tax offset (LITO): At $62,400 income, the LITO has almost fully phased out. The reduction is approximately $64 (the LITO begins at $700, reduces by 5 cents per dollar above $37,500 to $45,000, then by 1.5 cents per dollar above $45,000 until it reaches zero at $66,667).
• Total annual withholding: $9,508 + $1,248 - $64 = $10,692.
• Weekly withholding: $10,692 / 52 = approximately $206 per week.
• Weekly take-home pay: $1,200 - $206 = approximately $994 per week.

This means Sarah keeps about 83% of her gross pay after tax and Medicare.

2025–26 Income Tax Brackets

The withholding amounts in the weekly tax table are derived from the following marginal tax rates for Australian residents. These rates apply for the full 2025–26 financial year (1 July 2025 to 30 June 2026).

These rates do not include the 2% Medicare levy, which applies to most taxpayers on their full taxable income. The weekly tax table incorporates Medicare automatically.

The Tax-Free Threshold

Every Australian resident is entitled to a tax-free threshold of $18,200 per year. This means the first $350 per week of earnings is not subject to income tax. You claim the tax-free threshold by ticking the relevant box on your Tax File Number (TFN) declaration when starting a new job.

You can only claim the tax-free threshold from one employer. If you have multiple jobs, you should claim it from the employer that pays you the most. Your other employers will withhold at the “no tax-free threshold” rate (see below).

Low Income Tax Offset (LITO)

The low income tax offset is a non-refundable tax offset that reduces the tax payable for individuals earning up to $66,667. For 2025–26:

• Full offset: $700 for taxable incomes up to $37,500.
• Phase-out 1: Reduces by 5 cents for each dollar over $37,500 up to $45,000.
• Phase-out 2: Reduces by 1.5 cents for each dollar over $45,000 up to $66,667.
• Zero offset: Incomes above $66,667 receive no LITO benefit.

The LITO is built into the ATO’s withholding coefficients, which is why low-income earners see proportionally less tax withheld than the marginal rates alone would suggest. You do not need to claim the LITO separately — it is applied automatically.

Weekly Tax Table Without Tax-Free Threshold

If you have not claimed the tax-free threshold — typically because this is your second or subsequent job — your employer withholds at higher rates. The first $18,200 of annual income (normally tax-free) is taxed at 16%, the same rate as the $18,201-$45,000 bracket.

Here are some example withholding amounts for employees who have not claimed the tax-free threshold:

Note: The difference between the “with threshold” and “without threshold” columns is approximately $56 per week at most income levels. This reflects the tax-free threshold benefit of $18,200 x 18% (including Medicare) / 52 weeks.

If you have two jobs, the total tax collected across both employers should approximate the correct amount at the end of the year. However, if your combined income pushes you into a higher bracket, you may still have a tax bill at lodgement. Conversely, if too much has been withheld overall, you will receive a refund.

HELP/HECS Debt and the Weekly Tax Table

If you have a Higher Education Loan Programme (HELP) debt — previously known as HECS — your employer must withhold additional amounts on top of the standard PAYG tax shown in the table above. This applies to HELP, VET Student Loans (VSL), Student Financial Supplement Scheme (SFSS), and Trade Support Loans (TSL).

New Marginal Repayment System (From 2025–26)

The HELP repayment system changed significantly from 1 July 2025. Previously, once your income crossed the threshold, you repaid a flat percentage of your entire repayment income. From 2025–26, repayments are calculated on a marginal basis — you only repay on income above each threshold, similar to how income tax brackets work. This means most borrowers will make smaller repayments.

2025–26 HELP repayment thresholds:

The minimum repayment threshold increased from $54,435 (2024–25) to $67,000 (2025–26). This is a major change: if you earn $1,200 per week ($62,400 annually), you no longer make compulsory HELP repayments under the new thresholds.

Worked Example: HELP Debt at $1,400 Per Week

David earns $1,400 per week ($72,800 per year) and has a HELP debt. Under the new marginal system:

• Standard PAYG withholding: approximately $271 per week
• HELP repayment income above threshold: $72,800 - $67,000 = $5,800
• Annual HELP repayment: 15% x $5,800 = $870
• Weekly HELP withholding: $870 / 52 = approximately $17 per week
• Total weekly deductions: $271 + $17 = approximately $288 per week
• Take-home pay: approximately $1,112 per week

Under the old system (2024–25), David would have repaid 4% of his entire $72,800 income = $2,912 per year ($56 per week). The new marginal system saves him about $2,042 per year ($39 per week).

Your employer calculates the additional withholding based on your weekly earnings and the HELP repayment schedule. You indicate that you have a HELP debt on your TFN declaration, and your employer adjusts withholding accordingly.

The ATO publishes separate HELP/SFSS repayment thresholds and rates each financial year. Refer to the ATO HELP repayment thresholds for the current schedule.

Stage 3 Tax Cuts: Impact on Weekly Take-Home Pay

The Stage 3 tax cuts took effect on 1 July 2024 and continue through the 2025–26 financial year. These changes reduce PAYG withholding for almost every Australian worker.

What this means in weekly terms. A worker earning $1,000 per week ($52,000/year) pays approximately $139 in withholding under the 2025–26 rates. Under the pre-Stage 3 rates, the same worker would have paid approximately $169 — a saving of roughly $30 per week (about $1,560 per year).

A worker earning $2,000 per week ($104,000/year) saves approximately $53 per week ($2,756 per year).

Future rate change (subject to legislation). The government has announced that from 1 July 2026, the 16% bracket will be reduced to 15%, and from 1 July 2027 to 14%. These changes are subject to legislation being passed and may be amended before taking effect.

Medicare Levy and the Weekly Tax Table

The standard 2% Medicare levy is built into the withholding amounts shown in the main table. You do not need to calculate it separately. However, there are edge cases worth understanding:

Low-income exemption. If your annual taxable income is below $27,222 (singles) or $43,846 (families), you may pay a reduced Medicare levy or no levy at all. The weekly tax table may slightly overstate withholding for lower-income earners. The difference is corrected when you lodge your tax return.

Medicare levy surcharge (MLS). If you earn above $93,000 (singles) or $186,000 (families) and do not hold an appropriate level of private hospital cover, you may be liable for the MLS of 1% to 1.5%. The MLS is not included in the weekly tax table — it is assessed at tax time or can be voluntarily withheld.

Weekly Medicare levy component. For a worker earning $1,200 per week ($62,400/year), the Medicare levy component is approximately $24 per week ($1,248 per year) of the total $206 withholding. At this income level, the full 2% applies.

PAYG Withholding Variation for Investment Property Owners

If you own an investment property alongside your employment income, the weekly tax table may over-withhold. The ATO allows you to apply for a PAYG withholding variation (form NAT 2036) if your allowable deductions (such as negative gearing losses) will significantly reduce your taxable income.

Example. Sarah earns $1,200 per week ($62,400/year) and owns a negatively geared investment property with annual rental losses of $8,000. Without a variation, she receives the $8,000 benefit as a tax refund after lodging. With a withholding variation, her weekly withholding drops by approximately $46 per week ($8,000 x 30% marginal rate / 52 weeks), increasing her take-home pay from $994 to about $1,040 per week.

This is particularly valuable for property investors who would rather use that cash flow throughout the year than wait for a lump-sum refund in October.

Common Questions About Weekly Tax Withholding

When Does the New Weekly Tax Table Apply?

The ATO publishes updated tax tables each financial year, effective from 1 July. The 2025–26 table applies to all pay periods commencing on or after 1 July 2025. Employers are required to implement the new withholding rates from the first full pay period in the new financial year. If you notice your take-home pay changes slightly in early July, this is your employer applying the updated rates.

What Happens If Your Employer Over-Withholds?

If too much tax has been withheld throughout the year, you will receive a tax refund when you lodge your annual tax return. This is common when:

• You worked for only part of the year (the weekly table assumes you earn that amount for the full 52 weeks)
• You have deductions that reduce your taxable income (such as rental property losses, work-related expenses, or donations)
• You changed jobs mid-year and had overlapping tax-free threshold claims corrected

Most Australian employees receive a refund at tax time. The ATO reports the average refund is typically around $2,500-$3,500, though this varies widely depending on individual circumstances.

How Are Casual and Part-Time Workers Treated?

Casual and part-time employees are treated the same as full-time workers for PAYG withholding purposes. The weekly tax table applies based on the gross amount paid in each weekly pay period, regardless of how many hours were worked.

However, because the tax system is designed around annual income, casual workers who earn varying amounts each week may find they have too much or too little withheld over the year. If you have irregular income:

• High-earning weeks may push withholding into a higher bracket than your actual annual income warrants. You will likely receive a refund at tax time.
• Low-earning weeks may result in less withholding than ultimately needed. Keep this in mind if your total annual income ends up higher than expected.

What If You Do Not Provide a TFN?

If you start a job and do not provide your Tax File Number within 28 days, your employer is required to withhold at the highest marginal rate — 45% plus 2% Medicare levy (47% total) — on every dollar earned. There is no tax-free threshold applied. Providing your TFN promptly avoids this penalty withholding.

Related Tax Tools

Looking for more detail or a different pay cycle? These resources can help:

• Fortnightly tax table — If you are paid every two weeks, the fortnightly table shows withholding amounts for fortnightly gross earnings.
• PAYG tax table guide — An overview of all ATO PAYG withholding schedules, including weekly, fortnightly, and monthly tables.
• Weekly tax calculator — Enter your weekly earnings for an estimated breakdown of income tax, Medicare levy, LITO, and HELP repayments.
• Income tax calculator — Full Australian income tax calculator with Medicare levy, MLS, and the new 2025–26 HELP marginal repayment system.
• GST calculator — If you also run a business, calculate GST on goods and services.
• BAS calculator — Estimate your quarterly Business Activity Statement obligations.

For Property Investors

If you earn employment income and also own investment property, your PAYG withholding interacts with your rental income and deductions at tax time. Negative gearing losses reduce your taxable income, which may result in a larger tax refund — or better yet, a PAYG withholding variation can put that money in your pocket each week rather than waiting for a lump-sum refund. Use these tools to model the full picture:

• Negative gearing calculator — Calculate the after-tax cost of holding a negatively geared property, including the PAYG refund benefit.
• Capital gains tax calculator — Estimate CGT on the sale of an investment property, including the 50% discount for assets held longer than 12 months.
• Investment property calculator — All-in-one tool combining rental yield, negative gearing, depreciation, and cash flow analysis.
• Land tax calculator — Check your state land tax liability across all Australian states and territories.
• Property depreciation calculator — Estimate Div 40 and Div 43 depreciation deductions for investment property.
• Rental yield calculator — Calculate gross and net rental yield on your investment property.
• Rentvesting calculator — Compare renting where you live and buying an investment property versus buying your own home.
• EOFY tax planning guide — Strategies to reduce your tax bill before 30 June, including prepaid interest and depreciation.

Understanding your weekly PAYG withholding is the starting point. Combine it with your investment property deductions to see the true impact on your annual tax position.