Couples tax calculator: combined take-home, HELP and MLS
Enter both salaries to see your combined take-home, HELP repayments and Medicare Levy Surcharge.
Each partner pays income tax and makes compulsory HELP repayments from their own income. One person's lower salary does not reduce the other person's tax rate or HELP repayment.
The Medicare Levy Surcharge (MLS) works differently. The ATO combines both partners' income for MLS purposes to choose a family tier. The rate is then applied separately to each liable partner's income when the family does not have appropriate hospital cover.
Salary sacrifice usually reduces taxable income. The contribution is added back when the ATO works out HELP repayment income and the family MLS test income. It can still reduce income tax and the amount of MLS charged.
Calculate your household position
Enter both annual salaries separately. Switch HELP on for each debt holder, set the family's hospital-cover position and try the same salary sacrifice through either partner. The result shows combined take-home pay alongside the two individual assessments.
Couple tax, HELP and MLS calculator
Two individual tax assessments, joined only where the family MLS rules require it. Annual cash salary excludes employer super.
1Partner 1
Repayment assessed individually
2Partner 2
Repayment assessed individually
Appropriate hospital cover for both partners and all dependants
No child adjustment
$158,213
$13,184 per month after tax, levies and HELP
$238,000
$28,000 over the $210,000 family threshold
$2,280
1% family tier, charged to each partner
$15,227
The sum of two separate individual assessments
Per-partner assessment
The MLS rate is shared; the taxable and HELP amounts are not.
| Person | Taxable income | Income tax + levy | MLS | HELP | Take-home |
|---|---|---|---|---|---|
| Partner 1$10,000 sacrificed | $139,000 | $35,280 | $1,390 | $12,306 | $91,024 |
| Partner 2 | $89,000 | $19,000 | $890 | $2,921 | $67,189 |
What the $10,000 sacrifice changes
Partner 1 gives up $6,000 of household cash. It adds an estimated $8,500 after contributions tax, before fees and investment returns.
Household cash change
−$6,000
Net into super
+$8,500
Income tax + levy saved
$3,900
MLS saved
$100
HELP change: $0. The sacrificed amount is added back to that partner's repayment income.
Family MLS test income remains $238,000. The $100 reduction comes from charging the unchanged 1% rate to a smaller taxable-income base.
Same contribution, different partner
This is a cash-flow comparison, not a recommendation. Preservation, balances, insurance, investment options and each person's cap position can matter more than the tax difference.
Partner 1 sacrifices
Partner 2 sacrifices
The calculator treats the whole family as not appropriately covered for the full year. Part-year cover, Medicare exemptions, reportable fringe benefits, net investment losses and relationship changes need a day-by-day or full-return calculation.
Estimate only for two Australian residents claiming the tax-free threshold. Uses 2026–27 resident rates, the automatic $1,000 work-related deduction for each salary earner, the marginal HELP schedule, 12% employer SG and the $32,500 concessional cap. HELP balances are not entered, so calculated repayments are not capped at the remaining debt.
What stays separate and what combines
| Amount | How it is assessed |
|---|---|
| Income tax | Separately for each partner |
| 2% Medicare levy | Usually separately; family low-income rules can interact |
| HELP repayment | Separately for each debt holder |
| Medicare Levy Surcharge | A combined family test followed by a separate charge for each liable partner |
| Concessional super cap | Separately for each partner |
A combined salary cannot give you the full answer. A $200,000 household split evenly can have a different tax and HELP result from one split $150,000 and $50,000. This is why the calculator asks for two salaries.
HELP stays with each debt holder
Each compulsory repayment uses that person's repayment income. Their partner's salary and HELP balance do not enter the calculation. Adding the two repayments gives you a household cash-flow figure without creating a joint debt.
The ATO caps a compulsory repayment at the debt still owing. The calculator does not ask for balances, so its HELP result can be too high when someone is close to paying off their loan.
HELP Repayment CalculatorCheck each partner's compulsory repayment and remaining debt separately.Open calculatorwww.hecscalculator.com.au/?utm_source=moneytoolkit&utm_medium=internal-linkMLS uses a family income test
The base family threshold for 2026–27 is $210,000. The family rates are 1% from $210,001, 1.25% from $246,001 and 1.5% from $328,001. Each boundary rises by $1,500 for every dependent child after the first.
The ATO adds both partners' income for MLS purposes to select one rate. It then applies that rate to each liable partner's own surcharge base. A partner whose own MLS income is $28,011 or less is protected by the low-income family-member rule, even when the family crosses a threshold.
Hospital cover needs to include the whole family
Both partners and all MLS dependants need appropriate private patient hospital cover for the relevant days. One couples or family policy can cover everyone. Extras-only cover does not qualify.
Results across common income splits
The table keeps the main assumptions fixed while changing both salaries. It shows how family MLS moves through its tiers and how total HELP changes when one or both partners have a debt.
| Salary split | Combined salary | MLS without cover | Total HELP |
|---|---|---|---|
| $80,000 + $80,000 | $160,000 | $0Tier 0 | $2,842both have debt$1,421 if higher earner only |
| $110,000 + $90,000 | $200,000 | $0Tier 0 | $8,842both have debt$5,921 if higher earner only |
| $130,000 + $90,000 | $220,000 | $2,1801% tier | $11,842both have debt$8,921 if higher earner only |
| $150,000 + $100,000 | $250,000 | $3,1011.25% tier | $16,727both have debt$12,306 if higher earner only |
| $180,000 + $100,000 | $280,000 | $3,4761.25% tier | $21,827both have debt$17,406 if higher earner only |
| $200,000 + $150,000 | $350,000 | $5,2201.5% tier | $32,206both have debt$19,900 if higher earner only |
Compare the $130,000 + $90,000 and $150,000 + $100,000 rows. After the two automatic deductions, combined MLS income rises from $218,000 to $248,000. That crosses into the 1.25% tier and lifts the surcharge from $2,180 to about $3,101. The higher rate is charged on the full surcharge base.
What salary sacrifice changes
Salary sacrifice redirects future pay into the same person's super account. A $10,000 sacrifice usually has four effects:
- Taxable income falls by $10,000. Income tax, the ordinary Medicare levy and the amount of MLS charged may fall.
- HELP repayment income usually stays the same. The reportable super contribution is added back.
- Family MLS test income usually stays the same. The same contribution is added back when the family tier is selected.
- About $8,500 reaches super after 15% contributions tax. This is before fees, investment returns and any Division 293 or contribution-cap treatment.
At a 1% MLS rate, reducing one partner's taxable income by $10,000 cuts their surcharge by $100. The family remains in the same tier because the reportable contribution is included in the income test.
Which partner should salary sacrifice?
In the calculator's $150,000 + $90,000 example, putting $10,000 into super through the higher earner costs about $6,000 of household take-home. Using the other partner costs about $6,700. Either choice adds about $8,500 to super after contributions tax.
The difference comes from their marginal tax rates. The higher earner's sacrificed pay would otherwise face more income tax. The tax result is only one part of the choice. Check:
- employer super and other concessional contributions already made for each partner;
- unused carry-forward cap amounts that either partner can access;
- age, access to super, insurance, fees and investment choices; and
- accessible savings and how the contribution affects each retirement balance.
Each person has their own $32,500 concessional cap. At a $200,000cash salary, estimated employer super of $24,000 leaves $8,500 of ordinary cap room. A $10,000 sacrifice would exceed the standard cap unless unused carry-forward amounts or another exception applied.
Salary Sacrifice CalculatorCheck one partner's tax saving, employer super and concessional-cap position in more detail.Open calculatorwww.salarysacrificecalc.com.au/?utm_source=moneytoolkit&utm_medium=internal-linkWhat to check before acting
The calculator covers two salaries, HELP, family MLS and one salary sacrifice. Check these details against your records:
- reportable fringe benefits, net investment losses, trust income, deductible personal super contributions and other amounts included in the MLS or HELP income tests;
- relationship changes and the exact dates each family member held appropriate hospital cover;
- contributions actually received by each super fund, including amounts that may fall in a different financial year; and
- policy costs, exclusions, waiting periods and expected healthcare use when comparing hospital cover with the surcharge.
Common questions
Sources and assumptions
Every figure on this page is computed for the 2026-27 financial year using the rates and thresholds published by the sources below, and was last regenerated on 2 August 2026. Rates change each year; check the source before relying on a number.
- ATO — Medicare levy surcharge income, thresholds and rates
- ATO — Family and dependants for Medicare levy surcharge purposes
- ATO — Reportable super contributions and the income tests they affect
- ATO — Study and training loan repayment thresholds and rates
- ATO — Salary sacrificing super
- ATO — Concessional contributions cap and carry-forward rules
- ATO — Individual income tax rates
Further guidance
Supporting legislation
- Federal Register of Legislation — Higher Education Support Act 2003, Division 154
- Federal Register of Legislation — Medicare Levy Act 1986
- Federal Register of Legislation — 2026 Medicare levy low-income threshold amendments
- Federal Register of Legislation — A New Tax System (Medicare Levy Surcharge—Fringe Benefits) Act 1999
- Federal Register of Legislation — Private Health Insurance Act 2007, excess limits