Salary After Tax: How Your Take-Home Pay Varies by State and Industry in Australia

What Does “Salary After Tax” Mean?

When Australians talk about salary after tax, they mean the money that actually lands in your bank account each pay cycle after the Australian Tax Office (ATO) takes out income tax and the Medicare levy. It’s your take-home pay, the figure you use to budget for rent, groceries, and savings. Your gross salary—the number on your contract—is only half the story. The other half is how much of it you keep.

At Salary Index we measure gross full-time adult ordinary-time earnings against a national benchmark of 100, which equals $108,352 per year (based on ABS Average Weekly Earnings, May 2026). But because tax is progressive, your salary after tax doesn’t move in a straight line with your gross pay. A worker on index 150 doesn’t take home 50% more than someone on index 100—they keep a smaller share of each extra dollar.

How State Differences Affect Your Take-Home Pay

Your state matters for gross pay, and therefore for salary after tax. The Salary Index shows clear geographic patterns. The Australian Capital Territory leads at index 109.9 ($119,090 annual), followed by Western Australia at 106.9 ($115,825). At the other end, Tasmania sits at 88.6 ($96,008) and South Australia at 94.6 ($102,450). New South Wales is close to the national line at 101.2 ($109,658), while Victoria is slightly below at 98 ($106,137).

To see what this means after tax, let’s compare two workers—one in WA on the state index, one in TAS on the state index—using the 2026–27 resident tax rates and a flat 2% Medicare levy.

• WA worker (index 106.9, $115,825 gross): Tax on the first $18,200 is nil. From $18,201 to $45,000, tax is 15% = $4,020. From $45,001 to $115,825, tax is 30% = $21,247.50. Total income tax = $25,267.50. Medicare levy = $2,316.50. Total deductions = $27,584. Take-home = $88,241.
• TAS worker (index 88.6, $96,008 gross): Tax: nil to $18,200; 15% on $18,201–$45,000 = $4,020; 30% on $45,001–$96,008 = $15,302.10. Total income tax = $19,322.10. Medicare levy = $1,920.16. Total deductions = $21,242.26. Take-home = $74,766.

The WA worker takes home about $13,500 more per year—a real difference in living standards. But remember, these are estimates. They ignore HELP repayments, salary sacrifice, or the Medicare levy surcharge. For a deeper look at state patterns, visit our states page.

Industry Differences: From Mining to Retail

Industry is an even bigger driver of salary after tax. The Salary Index captures gross ordinary-time earnings by sector. Mining tops the list at 154.7, meaning a typical full-time adult in mining earns about 55% more than the national average. At the other end, Accommodation and food services sits at 72.5, and Retail trade at 75.9. Professional, scientific and technical services is above average at 114.7, while Health care and social assistance is close to the line at 97.8.

Let’s compare a mining worker and a retail worker to see the after-tax gap.

• Mining worker (index 154.7, $167,500 gross): Tax: nil to $18,200; 15% on $18,201–$45,000 = $4,020; 30% on $45,001–$135,000 = $27,000; 37% on $135,001–$167,500 = $12,025. Total income tax = $43,045. Medicare levy = $3,350. Total deductions = $46,395. Take-home = $121,105.
• Retail worker (index 75.9, $82,200 gross): Tax: nil to $18,200; 15% on $18,201–$45,000 = $4,020; 30% on $45,001–$82,200 = $11,160. Total income tax = $15,180. Medicare levy = $1,644. Total deductions = $16,824. Take-home = $65,376.

The mining worker takes home nearly $56,000 more per year. That’s a massive gap, driven by the industry’s high gross pay. But it’s not just about the top end. Even within the same state, choosing a higher-paying industry can lift your salary after tax significantly. For more on sector benchmarks, see our industries page.

How the Salary Index Helps You Compare After-Tax Pay

The Salary Index is a simple tool: your yearly gross divided by the national line ($108,352) times 100. It lets you see where a pay figure sits against the national average. But because tax is progressive, the index alone doesn’t tell you your take-home. That’s why we provide resident estimates with the standard tax rates and Medicare levy.

For example, a worker on the national minimum wage (index 48.2, $52,255 annual) would have a salary after tax of roughly $44,500. That’s a much higher retention rate (about 85%) than someone on index 150, who keeps about 72%. The progressive system means lower-income workers keep a larger share of their gross pay.

To calculate your own salary after tax, you can use the ATO’s tax tables or our how the index works page, which explains the formula. Remember that your actual take-home may differ if you have HELP debt, salary sacrifice arrangements, or are eligible for the Medicare levy reduction.

Practical Takeaways for Your Pay

When you’re evaluating a job offer or negotiating a raise, always think about salary after tax, not just the headline number. A $10,000 gross increase might only add $6,000–$7,000 to your take-home, depending on your tax bracket. And if you’re comparing roles across states or industries, the gap can be even larger.

For instance, a move from retail (index 75.9) to professional services (index 114.7) could boost your after-tax pay by $25,000–$30,000 a year. Similarly, relocating from Tasmania to Western Australia could add $13,000 or more to your take-home, even before considering industry effects.

Our pay guides offer more detailed breakdowns for specific roles and award classifications. And if you’re curious about how your own pay compares, check the topics section for tailored analyses.

The Bottom Line

Salary after tax is what you actually live on. It depends on your gross pay, which varies by state and industry, and on the federal tax system. The Salary Index gives you a quick way to benchmark gross earnings, but always run the numbers through a tax calculator to see your true take-home. Whether you’re in mining in WA or retail in TAS, understanding your after-tax pay helps you make smarter career and financial decisions.