Calculators
Income tax calculator
Work out your Australian income tax, Medicare levy and take-home pay using the 2025–26 or 2026–27 rates.
Based on resident tax rates for the 2026–27 financial year, excluding the Medicare Levy Surcharge and any deductions.
Your estimated take-home pay
$91,080.00
after $28,920.00 of tax and levies in 2026–27
Income tax
$26,520.00
Medicare levy
$2,400.00
Total payable
$28,920.00
Effective rate
24.1%
Marginal rate
30.0%
Take-home pay by pay cycle
Weekly
$1,751.54
Fortnightly
$3,503.08
Monthly
$7,590.00
How your 2026–27 tax is worked out
Each slice of your income is taxed at its own rate, not your top rate.
| Taxable income | Rate | Your income | Tax |
|---|---|---|---|
| $0 – $18,200 | Nil | $18,200.00 | $0.00 |
| $18,201 – $45,000 | 15% | $26,800.00 | $4,020.00 |
| $45,001 – $135,000 | 30% | $75,000.00 | $22,500.00 |
| $135,001 – $190,000 | 37% | $0.00 | $0.00 |
| $190,001 and over | 45% | $0.00 | $0.00 |
How is income tax calculated in Australia?
Australia uses a progressive marginal tax system. Your taxable income is split across a series of brackets, and each slice is taxed at that bracket’s rate rather than your whole income being taxed at your top rate. The first $18,200 you earn is tax free. On top of the income tax, most residents also pay a 2% Medicare levy, and anyone with a study or training loan makes a compulsory repayment once their income passes the repayment threshold.
What are the tax rates for 2025–26 and 2026–27?
The brackets are unchanged between the two years, but the rate on the second bracket falls. In 2025–26, income between $18,201 and $45,000 is taxed at 16%. From 1 July 2026 that rate drops to 15% under the legislated cost-of-living tax cuts, which is worth up to $268 a year. The 30%, 37% and 45% rates and their thresholds ($45,000, $135,000 and $190,000) stay the same across both years.
What is the Medicare levy and who pays it?
The Medicare levy is 2% of your taxable income and helps fund Australia’s public health system. If you earn under the low-income threshold you pay nothing, and just above it the levy phases in gradually at 10 cents per dollar rather than applying to your full income all at once. High income earners without an appropriate level of private hospital cover may also pay the Medicare Levy Surcharge, which this calculator does not include.
What is the Low Income Tax Offset (LITO)?
LITO is a tax offset of up to $700 for people on lower incomes. It reduces the tax you owe rather than your taxable income, and it is not refundable, so it can bring your tax bill to zero but will never generate a refund on its own. The full $700 applies up to $37,500 of taxable income, then reduces by 5 cents per dollar to $45,000 and by 1.5 cents per dollar after that, cutting out entirely at $66,667.
How are HECS-HELP repayments calculated?
Compulsory study and training loan repayments now work marginally, the same way income tax does. Rather than a single percentage applied to your whole income, the rate only applies to the income above each threshold. That means crossing a threshold no longer causes a sudden jump in your repayment. Turn on the study loan option above to include an estimated repayment in your take-home pay.
What is the difference between marginal and effective tax rate?
Your marginal rate is the rate applied to your next dollar of income, which is the bracket you currently sit in. Your effective rate is the total tax, levy and study loan repayment you actually pay divided by your gross income. Because the lower brackets are taxed lightly, your effective rate is always well below your marginal rate. This is why a pay rise that pushes you into a higher bracket never leaves you worse off overall.
What this calculator does not include
This is an estimate based on a full financial year as an Australian resident for tax purposes. It does not account for work-related deductions, salary sacrifice or other pre-tax contributions, the Medicare Levy Surcharge, private health insurance rebates, family tax benefits, the Seniors and Pensioners Tax Offset, capital gains, or foreign and working holiday maker rates. Your actual assessment may differ, so use it as a guide and speak to a registered tax agent about your circumstances.
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