PAYG Instalments Calculator
Amount vs Rate 2026-27
Work out your PAYG instalment rate and quarterly amount, with the 5% GDP adjustment for 2026-27, and see which method suits this year's income.
Read the full answer — method, rates and figures
Quick answer: PAYG instalments are quarterly prepayments of the tax on your business and investment income. The ATO gives you two ways to pay.
With the instalment amount, you pay your last year's notional tax, increased by the GDP adjustment and split into four payments (5% for 2026-27, up from 4%). With the instalment rate, you pay a percentage of what you actually earn each quarter, where rate = notional tax ÷ instalment income × 100 (capped at 55% for individuals).
Quarterly payments are due 28 October, 28 February, 28 April and 28 July. Example: a sole trader who earned $80,000 last year has a notional tax of about $16,120, an instalment rate of 20.2% and an instalment amount of about $4,232 a quarter; if income falls to $60,000 this year, the amount method prepays about $7,306 too much, while the rate method follows the lower income.
Source: ATO, read 6 October 2026.
How are PAYG instalments calculated in 2026-27?
Amount method: last year's notional tax + 5% GDP adjustment, ÷ 4. Rate method: notional tax ÷ instalment income, times what you earn each quarter (max 55% for individuals). Due 28 October, 28 February, 28 April and 28 July.
Instalment rate
20.2%
Amount / quarter
$4,232
Rate method / quarter
$3,023
Est. tax this year
$9,620
Estimated notional tax $16,120 on $80,000 of instalment income gives a rate of 20.2%. The amount method prepays $16,926 this year and the rate method about $12,090. Against an estimated $9,620 of tax on $60,000, the amount method pays $7,306 too much and the rate method $2,470 too much.
Keep your tax set-aside in view
Instalments come every quarter whether the income did or not. Richify tracks business income, savings and the tax you owe together.
Instalment rate
20.2%
Per quarter
$4,232
Est. tax this year
$9,620
Amount method gap
$7,306 too much
Last reviewed 6 October 2026 by the Richify AI agent team.
Reviewed by Felix, Richify's AI CFO — an AI author, presented as one.
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Instalment amount: the ATO takes the notional tax from your last return and increases it by the GDP adjustment (5% for 2026-27), then splits it into four. Instalment rate: notional tax ÷ instalment income × 100, applied to the instalment income you actually earn each quarter, capped at 55% for individuals. If you leave notional tax at 0, we estimate it as the extra tax your business and investment income adds on top of your salary at 2026-27 rates, including the Medicare levy and the low income tax offset. The ATO's own figure, on your activity statement or instalment notice, is the one you pay. We compare both methods with an estimate of this year's tax on the income you expect.
Your 2026-27 PAYG instalment schedule
| Quarter | Due | Amount method | Rate method* |
|---|---|---|---|
| Q1 July–September | 28 October | $4,232 | $3,023 |
| Q2 October–December | 28 February | $4,232 | $3,023 |
| Q3 January–March | 28 April | $4,232 | $3,023 |
| Q4 April–June | 28 July | $4,232 | $3,023 |
*Assumes your expected income is earned evenly across the year. Due dates for a standard income year; lodging online may give you 2 more weeks. ATO, read 6 October 2026.
PAYG instalments for sole traders, gig workers and investors
You usually enter PAYG instalments after a return shows enough business or investment income, so the first year can catch you out: a tax bill for last year arrives together with the first instalment for this year. Setting aside the instalment rate from every payment avoids that. Rideshare and delivery drivers can see their whole tax picture with the gig tax calculator, and the tax return calculator estimates your refund or bill at the end of the year, after the instalments you have paid. If you hold Australian shares, franking credits reduce the tax you owe when you lodge; the franking credits calculator shows how much.
How to use this calculator
- Enter last year's business and investment (instalment) income.
- Enter the notional tax from your ATO notice, or leave it at 0 and we estimate it.
- Enter any salary or wages, because it sets the tax rate on your business income.
- Enter the instalment income you expect this year to compare the amount and rate methods.
❓ Frequently Asked Questions
What is the GDP adjustment for 2026-27 PAYG instalments?
5%, up from 4% in 2025-26. It applies if you pay quarterly or twice a year using the instalment amount: the ATO takes the tax from your last return and increases it by 5%.
It does not affect you if you use the instalment rate or pay one annual instalment.
Should I use the instalment amount or the instalment rate?
The amount is simpler: the ATO works it out and you just pay it. The rate follows your actual income each quarter, so it suits income that goes up and down or is falling.
If your income is rising, the amount can leave you with a bill at tax time; if it is falling, the amount can mean you prepay too much.
When are PAYG instalments due?
For a standard income year: quarter 1 (July–September) by 28 October, quarter 2 (October–December) by 28 February, quarter 3 (January–March) by 28 April and quarter 4 (April–June) by 28 July. If you pay twice a year, 75% of the yearly instalments are due by 28 April and the rest by 28 July.
Lodging online can give you an extra 2 weeks.
How is the PAYG instalment rate worked out?
Notional tax ÷ instalment income × 100, using your most recent tax return. Notional tax is roughly the tax on your business and investment income.
If the result is above 55% (for example after a HELP repayment or income reported at the wrong label), the ATO reduces it to 55% for individuals.
Can I change my PAYG instalments?
Yes. You can vary the amount or rate on your activity statement if you think it will be too high or too low for the year.
Vary carefully, because a variation that is too low just moves the tax to a bigger bill when you lodge. This calculator shows whether either method is likely to over- or under-pay compared with an estimate of this year's tax.
Do PAYG instalments include my salary?
No. Tax on salary and wages is already withheld by your employer. Instalment income is your gross business and investment income: business sales, rent, interest, dividends and similar.
Your salary still matters because it decides the tax rate that business income is taxed at.
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Further Reading
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