After-Tax Pay by State Calculator

After-tax pay, commonly known as take-home pay or net income, is the portion of your salary that remains after all mandatory deductions have been made by your employer. In Australia, this primarily includes income tax (PAYG withholding), the Medicare levy, and any compulsory student loan repayments (like HECS-HELP). It's the actual amount that gets deposited into your bank account each pay cycle.

The calculation starts with your gross annual salary and subtracts federal deductions. Australia does not have state-based income taxes; all income tax is federal. The key components are: 1) **PAYG Tax:** Calculated based on tax brackets set by the Australian Taxation Office (ATO). 2) **Medicare Levy:** A 2% levy on your taxable income to fund the public healthcare system. 3) **HECS-HELP Repayment:** If you have a student loan, a percentage of your income is withheld once you earn above a certain threshold. State-specific costs, like stamp duty or vehicle registration, are not deducted from your pay but affect your overall financial position, which this calculator highlights.

• Your Tax File Number (TFN) Declaration form is crucial. It informs your employer of your circumstances (e.g., claiming the tax-free threshold) to ensure the correct amount of tax is withheld. An incorrect declaration can lead to a large tax bill or refund.
• While income tax is federal, the 'best' state for your take-home pay often comes down to indirect costs and lifestyle factors. States with lower property-related taxes (stamp duty, land tax) or cheaper vehicle registration can leave more money in your pocket.
• Superannuation is not a tax but a compulsory saving for retirement. Your employer must contribute a percentage (the Super Guarantee, currently 11%) of your ordinary time earnings into your super fund. This is on top of your salary and doesn't reduce your take-home pay, but it's a key part of your total remuneration package.

• Review your pay slip each pay period. Check that your gross pay, tax withheld, and superannuation contributions are correct. Report any discrepancies to your payroll department immediately.
• Consider making pre-tax salary sacrifice contributions to your superannuation. This reduces your taxable income, meaning you pay less tax, and boosts your retirement savings at the same time.
• Use the ATO's myTax portal to pre-fill your annual tax return. It automatically gathers information from employers, banks, and government agencies, making it easier to lodge your return accurately and claim any deductions you're entitled to.