After-tax estimator
What your leave pay is worth after tax
20 days, $4,019 before tax
4 weeks, so about $83,077 of salary this year
You keep
$2,733
of $4,019 Parental Leave Pay, about $137 a day after tax.
- Tax on it
- $1,286
- income tax plus Medicare levy
- Your top rate
- 30%
- plus 2% Medicare, 2026-27
- Plus super
- +$482
- 12% paid into your fund later
At work, those 4 weeks would normally put about $4,708 in your account after tax.
Budget for a gap of $1,975.
Unless your employer tops it up with paid parental leave of its own.
Estimate for an Australian resident with no HELP debt, no other income or deductions and no Medicare levy surcharge, with everything falling in 2026-27. Parental Leave Pay at $200.94 a day. Your actual tax is worked out when you lodge.
Why it is taxed at your top rate
Parental Leave Pay is taxable income. It does not get its own tax-free threshold; it is added to your salary for the financial year. So if you already earn enough to be in the 30% bracket, every Parental Leave Pay dollar is taxed at 30%, plus the 2% Medicare levy.
That is why two dads taking the same 20 days keep very different amounts. Here are the 20 reserved days at the 2026-27 rate, taken while off work for 4 weeks:
| Salary | Parental Leave Pay | Tax on it | You keep |
|---|---|---|---|
| $60,000 | $4,019 | $1,346 | $2,673 |
| $90,000 | $4,019 | $1,286 | $2,733 |
| $120,000 | $4,019 | $1,286 | $2,733 |
| $180,000 | $4,019 | $1,567 | $2,451 |
The lower salary paying a little more is not a typo. Below $66,667 the low income tax offset shrinks as your income rises, so each extra dollar of Parental Leave Pay also costs you some of that offset.
2026-27 rates used
| Taxable income | Rate on each dollar in the band |
|---|---|
| $0 to $18,200 | 0% |
| $18,201 to $45,000 | 15% |
| $45,001 to $135,000 | 30% |
| $135,001 to $190,000 | 37% |
| $190,001 and over | 45% |
Plus the Medicare levy of 2%, phased in above $28,011 (the 2025-26 threshold, the latest published). The low income tax offset of up to $700 applies below $66,667.
Avoiding a surprise at tax time
Tax may or may not be withheld from each payment, depending on who pays you and what you put on your tax file number declaration. If little or nothing is being withheld, set aside the tax figure above so the bill does not arrive with a baby.
Want to split the days differently? Use the split planner or the leave planner, then come back here with the number of days.
Verified 26 September 2026. General information, not tax advice.
Tax questions
Is paternity leave pay taxed in Australia?
Yes. Parental Leave Pay is a taxable payment. It is added to your other income for the year and taxed at your usual rates, plus the Medicare levy.
How much tax will I pay on Parental Leave Pay?
It depends on your other income. On a $90,000 salary, the 20 days reserved for you are taxed at about 32 cents in the dollar in 2026-27. If your total income for the year is under about $22,867 there is no tax on it at all.
Why does Parental Leave Pay feel like it is taxed so heavily?
Because it sits on top of your salary for the year, so every dollar is taxed at your highest rate, not your average rate.
Is super paid on Parental Leave Pay?
For babies born or adopted from 1 July 2025, yes. The ATO pays 12% of your Parental Leave Pay into your super after the financial year ends.