About the Australia Income Tax Calculator
This Australian income tax calculator estimates the tax an Australian resident pays on their taxable income for the 2025-26 financial year (1 July 2025 to 30 June 2026) and the 2026-27 year. It applies the Stage 3 resident tax rates, the low income tax offset (LITO) and the 2% Medicare levy, then shows your take-home pay per week, fortnight or month.
For 2025-26 the rates are nil up to $18,200, 16% to $45,000, 30% to $135,000, 37% to $190,000 and 45% above. From 1 July 2026 the 16% rate falls to 15% under the Cost of Living Tax Cuts legislation, so choose 2026-27 to see the effect on your pay. The calculator also shows the 12% superannuation guarantee your employer must pay on top of your salary.
It suits employees checking a job offer, contractors budgeting for tax time and anyone comparing years. It assumes you are a resident for the full year with private health cover (no Medicare levy surcharge) and no HELP/study debt. The Medicare levy reduction uses the ATO’s 2025-26 low-income threshold for singles of $28,011 (the levy phases in at 10 cents per dollar above it); the 2026-27 threshold has not been published yet, so the same figure is used for 2026-27, and family or seniors thresholds are not modelled.
With the default inputs, the take-home pay (per year) is $70,412.00. Change any value above to recalculate instantly.
How to use the australia income tax calculator
- 1Choose the financial year.
- 2Enter your taxable income for the year.
- 3Leave the Medicare levy on unless you hold an exemption.
- 4Choose weekly, fortnightly or monthly pay.
- 5Review your take-home pay, tax and super.
Formula and method
Taxable income is split across the resident brackets and each slice is taxed at its own rate. The low income tax offset of up to $700 is then subtracted: it is $700 up to $37,500, falls by 5 cents per dollar to $325 at $45,000, then by 1.5 cents per dollar until it reaches zero at about $66,667. The offset cannot reduce tax below zero.
The Medicare levy is 2% of taxable income, phased in for low earners: above the $28,011 single threshold (2025-26, also used for 2026-27 until a new figure is published) it is 10% of the excess until that reaches 2% of income at $35,013. Take-home pay is taxable income minus income tax and the Medicare levy. Super guarantee is 12% of salary paid by the employer on top of wages from 1 July 2025.
- LITO
- Low income tax offset, up to $700
- Medicare levy
- 2% of taxable income with a low-income phase-in
- SG
- Superannuation guarantee, 12% of ordinary time earnings
Worked examples
$90,000 salary in 2025-26
Tax is 16% of $26,800 ($4,288) plus 30% of $45,000 ($13,500) = $17,788. No LITO applies at this income. The 2% Medicare levy adds $1,800, leaving $70,412 a year, or about $2,708 a fortnight.
$40,000 income with the low income tax offset
Tax on the brackets is 16% of $21,800 = $3,488. LITO is $700 − 5% × $2,500 = $575, bringing income tax to $2,913. Adding the $800 Medicare levy leaves take-home pay of $36,287.
$30,000 income with a reduced Medicare levy
Bracket tax is 16% of $11,800 = $1,888, and the full $700 LITO brings it to $1,188. Income is only $1,989 above the $28,011 Medicare threshold, so the levy is 10% × $1,989 = $198.90 instead of the full 2% ($600). Take-home pay is $28,613.10.
$200,000 in 2026-27
With the 15% rate, tax is $4,020 + $27,000 + $20,350 + $4,500 = $55,870. The Medicare levy adds $4,000, leaving $140,130 — about $268 more than in 2025-26.
Frequently asked questions
What are the Australian tax rates for 2025-26?+
For residents: nil on the first $18,200, 16% from $18,201 to $45,000, 30% to $135,000, 37% to $190,000 and 45% above $190,000, plus the 2% Medicare levy.
What changes in 2026-27?+
From 1 July 2026 the 16% rate on income between $18,201 and $45,000 drops to 15%, saving up to $268 a year. It is legislated to fall again to 14% from 1 July 2027.
How much is the Medicare levy?+
The Medicare levy is 2% of taxable income. Low-income earners pay a reduced levy or none at all, and people without appropriate private hospital cover on higher incomes may also pay the separate Medicare levy surcharge.
What is the low income tax offset?+
LITO reduces tax for residents on lower incomes: $700 for incomes up to $37,500, phasing out completely at $66,667. It is applied automatically when you lodge your return.
Is super included in my salary?+
Usually not. Employers pay the superannuation guarantee — 12% from 1 July 2025 — on top of your salary. If your offer is a "total package including super", divide it by 1.12 to find the salary part.
Does this include HELP debt repayments?+
No. Compulsory HELP and other study-loan repayments are collected through the tax system on top of income tax; use the HELP debt calculator to estimate them.
Tax results are estimates based on published rules and simplified assumptions. They are not tax advice — check official guidance or a tax professional for your situation.