Updated for 2026–2027
Tax Withheld Calculator: Schedule 1 PAYG Withholding
See how much PAYG tax comes out of a weekly, fortnightly or monthly payslip under the ATO's own Schedule 1 formula — plus the Schedule 8 STSL component if there's a HELP/HECS debt. Works whether you're checking your own pay or withholding for an employee, and shows the payslip amount, not your final tax bill for the year.
Tax Withheld
Pay details
Pay frequency
This calculator uses the full Medicare levy withholding scales (Scale 1 — threshold not claimed, Scale 2 — threshold claimed). It does not model the Medicare levy exemption, half-levy, foreign-resident or no-TFN scales (ATO Scales 3–6).
Withholding Breakdown
Net pay
$1,201
out of $1,500 gross per week
Scale 2 — tax-free threshold claimed
- Total withheld
- $299
- Schedule 1 withholding
- $299
Per-Pay Breakdown
- Gross pay per week
- $1,500
- Schedule 1 withholding
- $299
- Total PAYG withheld
- $299
- Net pay
- $1,201
Related tools
This is the amount an employer withholds from a payslip under the ATO Schedule 1 statement of formulas — it is a per-pay-period estimate, not your final tax liability. Your actual tax owing is worked out at lodgment using the annual income tax brackets, and any difference between withholding and tax owed is reconciled with a refund or a bill. This is not financial advice. Sources: ATO Schedule 1 — PAYG withholding.
Weekly and fortnightly tax withheld examples
Schedule 1 (Scale 2) withholding in 2026–2027 for common gross pay amounts — tax-free threshold claimed, no study loan.
| Weekly Gross | Tax Withheld | Net Pay | % Withheld |
|---|---|---|---|
| $1,000 | $138 | $862 | 13.8% |
| $1,500 | $299 | $1,201 | 19.9% |
| $2,000 | $459 | $1,541 | 22.9% |
| $2,500 | $619 | $1,881 | 24.8% |
| $3,000 | $807 | $2,193 | 26.9% |
Fortnightly pay
| Fortnightly Gross | Tax Withheld | Net Pay | % Withheld |
|---|---|---|---|
| $2,000 | $276 | $1,724 | 13.8% |
| $3,000 | $598 | $2,402 | 19.9% |
| $4,000 | $918 | $3,082 | 22.9% |
| $5,000 | $1,238 | $3,762 | 24.8% |
| $6,000 | $1,614 | $4,386 | 26.9% |
How PAYG withholding is calculated
Employers work out how much tax to take from each payslip using ATO Schedule 1, a published set of formulas keyed to the pay period's gross amount and whether the tax-free threshold is claimed. This calculator implements that formula directly — including the ATO's own truncation and rounding rules — rather than approximating it from the annual tax brackets, so it should match a compliant payroll system to the dollar.
The same formula works from either side of the payslip. If you're an employer or bookkeeper working out how much to withhold from an employee's pay, enter their gross pay, pay frequency, and the tax-free threshold and study-loan answers from their Tax File Number declaration — the result is the Schedule 1 amount to withhold, with any STSL component itemised separately.
If you carry a HELP, VSL, SSL, TSL or AASL study loan, your employer adds a separate STSL component from ATO Schedule 8 on top of the income-tax withholding — it's calculated on the same gross amount using its own coefficient table, then added to the total withheld.
Withholding is not your final tax bill. It's an estimate taken out progressively so you don't owe a large lump sum at the end of the year. Your actual liability is worked out at lodgment on your total annual income — the tax return calculator estimates that figure, and the tax refund guide explains how the reconciliation works.
This calculator covers the two scales that apply to the large majority of employees: Scale 1 (tax-free threshold not claimed) and Scale 2 (tax-free threshold claimed), both using the full Medicare levy. It does not model the Medicare levy exemption or half-levy scales, foreign-resident withholding, or the no-TFN rate.
For your complete annual position — including the Medicare Levy Surcharge, Low Income Tax Offset, and superannuation — see the take-home pay calculator. If you have a study loan, the HECS calculator projects how your repayments change over time.
Frequently Asked Questions
What does tax withheld mean?
Tax withheld is the amount your employer takes out of each pay and sends to the ATO on your behalf — in Australia this system is called PAYG (Pay As You Go) withholding, and it exists so you don't face one large tax bill at the end of the year. It's calculated using the ATO Schedule 1 statement of formulas (NAT 1004) applied to that pay period's gross amount, not your full annual income. For a $1,500 weekly payslip claiming the tax-free threshold, Schedule 1 withholds $299 in 2026–2027, leaving $1,201 net. The "total tax withheld" on your income statement is simply the year-to-date sum of these per-pay amounts. Enter your own gross pay above to see the figure for your pay cycle.
What's the difference between Scale 1 and Scale 2 withholding?
Scale 2 is the withholding scale used when you claim the tax-free threshold on a payer's Tax File Number declaration — the usual choice for your main job. Scale 1 is used when you don't claim it, and it withholds more from the same gross pay because none of it is treated as tax-free — the typical setting for a second job. On the same $1,500 weekly gross, Scale 2 withholds $299 while Scale 1 withholds $409 — a difference that gets reconciled at lodgment either way, since you only get one tax-free threshold across all your income for the year.
What is the STSL component on my payslip?
STSL stands for Study and Training Support Loans — HELP (HECS), VSL, SSL, TSL and the Australian Apprenticeship Support Loan (AASL) are all covered. If you've told your employer you have one of these debts, they add a separate Schedule 8 (NAT 3539) component on top of your income tax withholding, calculated on the same pay-period gross. On a $1,500 weekly payslip with the threshold claimed, that adds $25 to the $299 income tax withholding, for $324 total withheld. Toggle the study loan option above to see your own STSL component.
Should I use this or the ATO's tax withheld calculator?
Both implement the same published formulas, so for everyday employee payslips they produce the same figure. This calculator applies the current Schedule 1 (NAT 1004) and Schedule 8 (NAT 3539) coefficients directly — including the ATO's truncation and rounding rules — and unlike the ATO's tool it shows the full breakdown on one screen: income tax withholding, the STSL component, and net pay side by side, with worked examples for common pay amounts. The ATO's own calculator covers extra situations this one doesn't model, such as foreign-resident withholding, the no-TFN rate, and Medicare levy exemptions or reductions. If one of those applies to you, use the ATO tool; otherwise this page gives the same answer with more context.
Why doesn't my payslip withholding match my tax return?
Withholding and your final tax liability are two different calculations. Withholding uses the Schedule 1 per-pay-period formula on that single payslip in isolation; your actual tax is worked out at lodgment on your whole year's income using the annual tax brackets, after offsets like LITO and any deductions. The two rarely land on the same number — if you were withheld more than you owed across the year you get a refund, and if you were withheld less you get a bill. The $1,500-a-week Scale 2 example above works out to $15,548 withheld over a full year on a stable income, which is designed to sit close to (but rarely exactly at) the actual annual tax owed for 2026–2027 — the tax return calculator on this site estimates that final figure.
How is monthly withholding different from weekly and fortnightly?
The ATO formula is defined on a weekly-equivalent earnings figure. For a fortnightly payslip, the gross is halved before the formula is applied, then the rounded weekly result is doubled. For a monthly payslip, the gross is converted to its weekly equivalent (roughly ×3÷13) before the formula runs, then the rounded weekly result is scaled back up. Because of the rounding at each step, monthly withholding isn't simply weekly withholding × 4.33 — it's the ATO's own conversion method. A $6,500 monthly payslip claiming the threshold withholds $1,296 under Schedule 1 in 2026–2027, compared with $598 on a $3,000 fortnightly payslip covering roughly the same annual income.
Does this calculator handle the Medicare levy exemption or foreign residents?
Not in this version. This calculator uses the full Medicare levy Schedule 1 scales — Scale 1 (threshold not claimed) and Scale 2 (threshold claimed) — which cover the large majority of employees. It does not model the Medicare levy exemption or half-levy scales, foreign-resident withholding, or the no-TFN rate (the ATO's Scales 3 to 6). If any of those apply to you, use the ATO's own withholding lookup tool for an exact figure, or the take-home pay calculator on this site for your full annual position including the Medicare Levy Surcharge.
Is PAYG withholding the same as my marginal tax rate?
No — withholding is designed to approximate your average annual tax rate across the year, not tax each dollar at your top marginal rate. The Schedule 1 coefficients build in the effect of the tax-free threshold and the progressive brackets so that, for a stable income paid every period, total withholding across the year lands close to (though rarely exactly at) the actual tax owed. A one-off change to your pay for a single period — like a bonus — can distort this, which is a separate calculation covered by the bonus tax calculator on this site.
How do I work out how much tax to withhold from an employee's pay?
The same Schedule 1 formula applies from the employer's side of the payslip. Enter the employee's gross pay for the period, their pay frequency, and the tax-free threshold and study-loan answers from their Tax File Number declaration — the result is the amount to withhold, with any STSL component itemised separately. It's also a quick way to check payroll software: this engine implements the published Schedule 1 and Schedule 8 formulas (including the ATO's exact truncation and rounding rules) rather than an approximation, so it should match compliant payroll software to the dollar for the covered scales. If a payslip differs, check whether extra factors apply — a Medicare levy variation, a HELP debt not yet reported, or salary sacrifice reducing the taxable gross.
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