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Ever looked at your payslip and wondered why the tax withheld doesn’t quite add up? You’re not alone. Knowing how your employer calculates weekly withholding helps you catch errors early and plan your finances with confidence.
This guide covers the weekly tax table 2025–26, what it is, the current brackets, how to read withholding figures, and the key rules every employer and employee should know.
What Is the ATO Weekly Tax Table?
The ATO weekly tax table (NAT 1005) is a reference schedule that tells employers how much income tax and Medicare levy to withhold from an employee’s weekly gross pay, a process known as PAYG (Pay As You Go) withholding.
The PAYG weekly tax table covers:
- Salary and wages, allowances, leave loading
- Paid parental leave
- Directors’ fees
- Labour-hire payments
- Government training payments
- Compensation or sickness payments at a periodic rate
- Payments to foreign residents
So whether you’re a full-time employee, a labour-hire worker, or receiving paid parental leave, your employer is using the same tax table weekly reference to calculate withholding amounts.
2025–26 Income Tax Brackets: The Foundation of Weekly Withholding
All weekly withholding amounts are calculated from Australia’s current marginal income tax rates for the 2025–26 Financial Year (1 July 2025 to 30 June 2026). , the tax brackets for Australian residents are:
| Taxable Income | Tax Rate |
| $0 – $18,200 | 0% (tax-free threshold) |
| $18,201 – $45,000 | 16% |
| $45,001 – $135,000 | 30% |
| $135,001 – $190,000 | 37% |
| $190,001 and above | 45% |
Note: These rates do not include the 2% Medicare levy, which is factored separately into the weekly withholding amounts.
Weekly Withholding at a Glance: Key Earnings Levels
The table below shows approximate weekly PAYG withholding for Australian residents who have claimed the tax-free threshold. Figures include the 2% Medicare levy.
| Weekly Gross | Annual Equivalent | Tax Withheld | Take-Home Pay |
| $350 | $18,200 | $0 | $350 |
| $500 | $26,000 | $22 | $478 |
| $750 | $39,000 | $78 | $672 |
| $1,000 | $52,000 | $143 | $857 |
| $1,200 | $62,400 | $208 | $992 |
| $1,500 | $78,000 | $304 | $1,196 |
| $2,000 | $104,000 | $464 | $1,536 |
| $2,500 | $130,000 | $624 | $1,876 |
| $3,000 | $156,000 | $812 | $2,188 |
Note: These are approximate figures based on 2025–26 marginal rates, 2% Medicare levy, and LITO.
How to Calculate Your Weekly Withholding: Step by Step
Step 1: Calculate total weekly earnings.
Add all allowances, overtime, and irregular payments to normal weekly earnings. Ignore any cents; the table works in whole dollars only.
Step 2: Match the figure to the withholding table.
Input the weekly amount into the NAT 1005 – Weekly Tax Table.
Step 3: Choose the right column.
- Column 2: Employee is claiming the tax-free threshold
- Column 3: Employee is not claiming the tax-free threshold (e.g., this is a second job)
Step 4: Apply any tax offset.
If you’ve submitted a Withholding Declaration claiming a tax offset, use the ATO’s Ready Reckoner for Tax Offsets to find the weekly value and subtract it from the Column 2 amount.
Step 5: Apply any Medicare levy adjustment.
If you’ve lodged a Medicare Levy Variation Declaration, adjust accordingly using the Medicare levy adjustment weekly tax table.
Step 6: Add HELP/HECS debt repayments if applicable.
If you have an outstanding study loan, add the extra withholding amount from the Study and Training Support Loans weekly tax table.
Worked Example
If you earn $563 in a given week and claim the tax-free threshold, your employer will withhold $39.
If you were not claiming the tax-free threshold, your employer would withhold $114 instead, a difference of $75 per week that reflects the value of the tax-free threshold spread across the 52-week financial year.
What Happens in a 53-Pay Week Year?
The weekly tax table is calibrated for 52 pay periods. When a financial year generates 53 weekly pays, the extra pay can result in slightly less total tax being withheld.
The ATO recommends withholding additional amounts to cover the gap:
| Weekly Earnings | Additional Withholding |
| $875 to $2,574 | $3 per week |
| $2,575 to $3,649 | $6 per week |
| $3,650 and above | $12 per week |
Note: Actual additional withholding may vary depending on payroll software and employee circumstances.
How Does the Tax-Free Threshold Work?
Every Australian resident can earn up to $18,200 per year or about $350 per week, before any income tax applies.
1. To access this, you tick “Yes” on your Tax File Number (TFN) declaration form when starting a job. It applies automatically from that pay period onwards.
2. You can only claim the tax-free threshold from one employer. If you have a second job, that employer withholds at the higher “no threshold” rates.
3. There’s also the Low Income Tax Offset (LITO), which further reduces tax for lower earners:
- Full offset of $700 applies to incomes of $37,500 or less
- $37,501 – $45,000, $700 minus 5 cents for every $1 above $37,500
- $45,001 – $66,667, $325 minus 1.5 cents for every $1 above $45,000
- Fully phased out above $66,667 (no offset)
HELP/HECS Debt and the Weekly Tax Table
From 1 July 2025, HELP repayments moved to a marginal system, meaning you only repay on income above each threshold, not on your entire income.
The minimum repayment threshold also rose significantly, from $54,435 (in 2024–25) to $67,000 (2025–26).
For example:
If you earn $62,400 annually ($1,200 per week), you now make no compulsory HELP repayments.
For someone earning $1,400 per week ($72,800 annually):
- Income above threshold: $72,800 − $67,000 = $5,800
- Annual HELP repayment: 15% × $5,800 = $870
- Weekly HELP withholding: approximately $17 per week
Under the old flat-rate system, the same person would have paid around $56 per week, a saving of over $2,000 per year under the new approach.
Your employer adds this HELP withholding on top of standard PAYG, based on what you declared on your TFN declaration form.
If you want to estimate your annual refund or compare weekly withholding outcomes, you can also use a tax return calculator to project your overall tax position for the year.
What If the TFN Hasn’t Been Provided?
If you do not provide your Tax File Number (TFN) within 28 days of starting work, your employer must withhold at the top marginal rate: 47% for Australian residents (45% tax + 2% Medicare levy) and 45% for foreign residents, on every dollar earned. No tax-free threshold applies.
Incorrect withholding declarations, undeclared income, or inconsistent payroll reporting can sometimes contribute to common ATO tax return audit red flags, making accurate PAYG withholding especially important.
Need Help With Your Tax & Payroll?
At TaxByte, we help Australian employees, sole traders, and businesses stay on top of payroll, PAYG obligations, tax compliance, and reporting requirements with practical advice and reliable support.
Book a consultation or contact our team today.
This article is for general information purposes only and does not constitute tax or financial advice. Always refer to the ATO’s current published tables or consult us for advice specific to your situation.