A teacher is comparing two job offers with different advertised salaries and wants to know what actually lands in their bank account each fortnight once tax, the Medicare levy and their study loan are accounted for.
Take-home = Gross salary − Income tax − Medicare levy − HELP repayment (AU)
Take-home = Gross salary − Federal tax − FICA − 401(k)/403(b) contribution (US)AU figures use 2024-25 resident tax brackets and the 2026-27 HELP marginal repayment thresholds. US figures use 2024 federal brackets and standard deductions; state and local tax are not included as they vary by state.1 What this calculator does
Estimates a teacher's take-home pay from their advertised gross salary. In Australia this includes income tax, the Medicare levy and — if selected — a compulsory HELP (HECS) repayment on the new marginal system. In the United States it includes federal income tax, FICA (Social Security and Medicare) and any pre-tax 401(k)/403(b) retirement contribution. State and local tax are flagged as excluded since they vary widely by location.
2 Formula & professional reasoning
AU: Take-home = Salary − Income tax − Medicare levy (2%) − HELP repayment
HELP (2026-27): 0% below $69,528 | 15% of excess $69,528-$129,717 | 17% of excess above to $186,050 | 10% flat above $186,050
US: Take-home = Salary − Federal tax − FICA (7.65%) − 401(k)/403(b) contribution
Advertised teacher salaries are gross figures, but the actual amount deposited each pay cycle is what determines whether a job offer, a move between sectors, or taking on a HECS/HELP debt for further study is financially workable. The Australian HELP system moved to a marginal repayment structure from 1 July 2025 — like income tax brackets, only the income above each threshold is taxed at that band's rate, which removes the old "cliff" effect where crossing a threshold by $1 could trigger a much larger jump in the total repayment. In the US, a traditional 401(k)/403(b) contribution reduces taxable income (and therefore federal tax) but not FICA, since FICA is calculated on gross wages before any retirement deduction.
3 Worked examples
⚠️ Illustrative example only — not financial or professional advice.
Tax: 5,092+(75,000-45,000)×0.325=$14,842 | Medicare: 75,000×0.02=$1,500 | Take-home: 75,000-14,842-1,500=$58,658Tax: 5,092+(95,000-45,000)×0.325=$21,342 | Medicare: $1,900 | HELP: (95,000-69,528)×0.15=$3,821 | Take-home: 95,000-21,342-1,900-3,821=$67,937403(b): 68,000×0.08=$5,440 | Taxable: 68,000-5,440-14,600=$47,960 | Federal tax ≈$5,563 | FICA: 68,000×0.0765=$5,202 | Take-home: 68,000-5,563-5,202-5,440=$51,7954 Sanity check
5 Common errors
| Error | Cause | Consequence | Fix |
|---|---|---|---|
| Comparing two job offers by gross salary alone | Ignoring that HELP repayments, Medicare levy tiers and superannuation arrangements can differ between offers | Choosing the lower-paying job in take-home terms while believing it pays more | Always compare take-home pay, not gross salary, especially when one offer includes salary packaging or a different super arrangement. |
| Forgetting the HELP debt when it still shows a balance | Assuming the debt is paid off once payslip deductions stop appearing | An unexpected repayment demand at tax time if the employer under-withheld | Check your HELP balance via myGov each year and always tick the correct box on your TFN declaration for every employer. |
| Using this year’s tax brackets for a multi-year projection | Assuming brackets and thresholds stay fixed over time | Understating future tax as salary grows into higher, unindexed-looking brackets | Rerun the calculation each financial year, since both AU tax brackets and HELP thresholds are indexed or adjusted periodically. |
| Ignoring FICA when estimating US take-home pay | Focusing only on federal income tax and forgetting Social Security and Medicare withholding | Overestimating take-home pay by roughly 7.65% of gross salary | Always include FICA in a US take-home estimate — it applies regardless of how many allowances or deductions are claimed. |
6 Reference & regulatory links
7 Professional workflow
Common tools used alongside this one: