The monthly tax table helps employers avoid withholding too much or too little from pay. On a monthly basis, tax is calculated using ATO tax tables and PAYG rules. These tables help employers use the tax-free threshold, tax offsets, Medicare levy adjustments, and foreign resident rates correctly.
They also guide withholdings for allowances, irregular payments, and higher education loan program debts. Because rates and thresholds change across income tax cuts and financial years, mistakes can distort tax withheld. This guide explains the monthly table, related calculations, and practical payroll use.
What is a Monthly Tax Table?
A monthly tax table helps Australian employers calculate Pay As You Go (PAYG) withholding from monthly employee payments. It translates annual income tax rates into practical monthly withholding amounts for payroll. This matters because correct withholding helps workers avoid large tax bills later. It also supports consistent pay runs, tax file number reporting, and compliance.
Employers can use it alongside the ATO tax withheld calculator for checks. The Australian Taxation Office publishes these tables for withholding tax purposes every year. Monthly tables cover regular wages, allowances, and some other employee payments.
How to Use an ATO Monthly Tax Table?
First, match the employee’s payment frequency to the monthly tax table correctly. Then, locate the earnings band at or below the gross monthly pay figure. Compare the withholding column with or without the tax-free threshold claim. Use the nearest lower row when an exact figure is missing there. Then, enter that amount into payroll before Single Touch Payroll reporting starts.
You can also consider using the Withholding Lookup Tool available on the official ATO website. This helps you work out the withholding amount faster and more efficiently.
Monthly Tax Table 2024
ATO’s 2024 monthly tax table applies from 1 July 2024 through 30 June 2025. Below is a short excerpt of the published schedule for monthly pay runs. The table rises in small increments, so payroll teams often automate calculations. Employers should still cross-check allowances and unusual payments before withholding manually.
| Taxable Income | Tax Rate | Tax Payable |
| $0-$18,200 | 0% | Nil |
| $18,201-$45,000 | 16% | 16c for each $1 over $18,200 |
| $45,000-$135,000 | 30% | $4,288 plus 30c for each $1 over $45,000 |
| $135,000-$190,000 | 37% | $31,288 plus 37c for each $1 over $135,000 |
| $190,001 and above | 45% | $51,638 plus 45c for each $1 over $190,000 |
These tax rates exclude the 2% Medicare Levy and any debts.
Monthly Tax Table 2025
The ATO says no changes have been applied to regular Schedule 1 monthly withholding for 2025-26. Instead, the 1 July 2024 monthly table (NAT 1007) continued to apply from 1 July 2025. The 2025 PAYG update mainly affected study and training support loan withholding tables. So, 2025 follows 2024 for regular monthly payroll withholding calculations overall.
Monthly Tax Table 2026
As of 3 June 2026, the ATO says the 2026 PAYG withholding tables are available. The software developers’ newsroom listed the release on 19 May 2026. That means employers should use the current 2026 table instead of waiting. Below is an excerpt of the most recent monthly tax table released by the ATO.
| Taxable Income | Tax Rates |
| $0-$18,200 | 0% |
| $18,201-$45,000 | 15% |
| $45,000-$135,000 | 30% |
| $135,000-$190,000 | 37% |
| $190,001 and above | 45% |
This table shows that changes have been made to the previous tax table for 2024-25. According to this table, Australians earning $18,201-$45,000 fall in the 15% annual tax bracket now compared to the previous table, where the tax bracket for the same income range was 16%. Therefore, employers must update their payroll software to accommodate this adjustment for the income year commencing 1 July 2026.
Monthly PAYG Withholding Amount and Payment
The ATO produces tax tables to work out withholding from employees and payees. Its tax withheld calculator covers weekly, fortnightly, monthly, and quarterly payments too. Payroll systems then apply the correct amount during each pay run cycle. Employers report withheld amounts through Single Touch Payroll and keep declaration records.
Study and training support loan tables changed from 24 September 2025 onward. Regular monthly withholding stayed aligned with the 2024 table into the 2025-26 cycle. That consistency simplifies payroll comparisons across months and financial years for employers.
Medicare Levy and Adjustments
The ATO says no Medicare levy applies below $2,166.67 in monthly earnings for most payees. It also directs employers to round monthly earnings down first, then calculate 2%. When more than ten children are claimed, column A becomes $7,687 plus $368 for each extra child. Employers should use the separate Medicare levy adjustment monthly tax table before monthly PAYG withholding. It helps payroll calculate the correct amount for employees or other payees.
| Condition | Monthly rule |
|---|---|
| No Medicare levy payable | Monthly earnings below $2,166.67 |
| Rounding method | Round earnings down, then apply 2% |
| More than ten children | $7,687 plus $368 for each extra child |
Tax Offset:
The monthly tax table includes a tax offset ready reckoner on page 12. Employers use the nearest lower earnings row whenever exact monthly earnings do not appear. The ATO rounds calculated withholding amounts to the nearest dollar, with 50 cents moving up. This method keeps tax offsets aligned with monthly payroll and PAYG withholding.
Study and Training Support Loan:
The ATO updated the monthly study and training support loans table on 24 September 2025. Employers withhold the STSL loan component from taxable allowances, bonuses, and irregular payments too. The updated monthly table applies through 30 June 2026 for monthly payroll. The table below helps in calculating the correct amount before Single Touch Payroll reporting each month.
| Repayment Income | Repayment Rate |
| $0 to $69,528 | Nil |
| $69,528 to $129,716 | 15% of the amount over $69,528 |
| $129,717 and above | 17% of the amount over $129,717 (plus $8,700 or 10%) of the total repayment income (whichever is lower) |
Monthly Tax Calculation for Different Workers
Monthly calculations change across worker types, residency status, and withholding declaration details each month. Employers add normal monthly earnings, taxable allowances, and irregular payments before withholding. They ignore cents and use the nearest lower row in the PAYG withholding tax tables. Then they apply tax-free threshold claims, TFN declarations, and Medicare adjustments where required. These rules help employers estimate the correct amount of taxes for their employees.
Foreign Resident Withholding:
Foreign resident withholding uses separate 2025-26 rates for payroll. Employers should apply this table whenever residency rules make the payee a foreign resident.
| Taxable income | Tax on this income |
|---|---|
| 0 – $135,000 | 30c for each $1 |
| $135,001 – $190,000 | $40,500 plus 37c for each $1 over $135,000 |
| $190,001 and over | $60,850 plus 45c for each $1 over $190,000 |
Tax-Free Threshold:
Australian residents keep the $18,200 tax-free threshold under the resident rates in Australia. Income from $18,201 to $45,000 is taxed at 16% for residents. Income from $45,001 to $135,000 is taxed at 30% for residents again. The resident schedule then moves to 37% and 45% later. Foreign residents generally do not get the threshold on ordinary salary income.
Tax File Number (TFN):
Employees should lodge a TFN declaration before the first payroll run each month. If no TFN arrives within 28 days, withhold 47% from resident payments. Foreign resident payments without a TFN attract 45% withholding under ATO rules. The ATO uses this declaration to calculate the correct amount for payroll. Employers should keep the TFN record with payroll and Single Touch Payroll files.
| TFN situation | Withholding rule |
|---|---|
| Resident employee, no TFN after 28 days | 47% |
| Foreign resident, no TFN | 45% |
Allowance and Superannuation:
Taxable allowances join normal monthly earnings before withholding calculations in payroll. Common examples include travel, shift, and tool allowances for employees and payees. Irregular payments also enter the calculation when they are taxable. Superannuation contributions follow separate rules and usually do not change withholding. Special superannuation lump sums use separate ATO tables instead.
Monthly vs Weekly Tax Table
Monthly and weekly tax tables serve the same PAYG purpose, but they convert pay periods differently. Employers use the monthly tax table for monthly pay runs and the weekly table for weekly payroll cycles. Both ATO tax tables reflect the same resident and foreign resident tax rules, yet the conversion step changes withholding amounts. Choosing the wrong table can distort withholding, so payroll teams should match the table to payment frequency.
Conclusion
The monthly tax table gives payroll teams a clear path for withholding, reporting, and adjustments. Using the correct schedule protects employees, payees, and employers from avoidable payroll errors. It also keeps PAYG tax aligned with resident rates, foreign resident rates, and declarations.
When pay runs include allowances, Medicare levy items, or study loan deductions, accuracy matters. Good payroll practice means checking the ATO table before each monthly calculation. Which monthly withholding rule do you check most often in your payroll process?
FAQs
1. When should I use the Medicare levy adjustment table?
Use the separate monthly Medicare levy adjustment table only when the employee qualifies. The ATO applies it before final withholding, alongside the monthly PAYG schedule.
2. Does the tax-free threshold apply to foreign residents?
Foreign residents usually do not receive the tax-free threshold on salary income. Resident rates and thresholds apply only when the payee is an Australian resident.
3. What happens if an employee does not give a TFN?
If no TFN arrives within 28 days, resident withholding can rise to 47%. Foreign resident no-TFN payments generally attract 45% withholding instead.
4. Do allowances and irregular payments affect withholding?
Taxable allowances and irregular payments add to normal monthly earnings before withholding. That includes many employee payments, so payroll should calculate the amount carefully.
5. Can I use the ATO calculator to work out withholding?
The ATO tax withheld calculator works for weekly, fortnightly, monthly, and quarterly payments. It helps employers work out how much to withhold before running payroll.