π¦πΊ Australia Income Tax Calculator
2025-26 resident rates plus Medicare levy.
Estimated Australian income tax
Estimates for planning only, not financial advice.
Australia taxes residents on marginal brackets for 2025-26: nothing on the first $18,200, then 16% to $45,000, 30% to $135,000, 37% to $190,000, and 45% above that, with the 2% Medicare levy on top for most taxpayers. On $75,000 of taxable income, the income tax is $13,288.00 plus a $1,500.00 Medicare levy, for $14,788.00 total and $60,212.00 left over.
How to Use This Calculator
Enter your taxable income for the financial year (assessable income minus deductions) and whether the Medicare levy applies. The calculator walks each dollar through the brackets and shows your marginal and effective rates.
Enter taxable income in Australian dollars. This is after work-related deductions, not your gross salary.
Choose whether to include the 2% Medicare levy. Most residents pay it; low-income earners and some exemption categories pay less or nothing.
Read your income tax, Medicare levy, marginal rate, and after-tax income. If you are comparing take-home across countries, our US federal income tax calculator runs the American side.
2025-26 Resident Tax Brackets
These are the stage 3 revised rates in force since 2024-25, unchanged for 2025-26. The next legislated change drops the 16% bracket to 15% from 1 July 2026, then 14% from 1 July 2027, which is worth $268 a year to anyone earning over $45,000. The Low Income Tax Offset (up to $700) effectively lifts the tax-free threshold to about $22,575 for eligible earners, and this calculator shows tax before offsets so you can see the raw bracket math.
Worked Example
Taxable income of $75,000. The first $18,200 is tax-free. The slice from $18,201 to $45,000 ($26,800) at 16% is $4,288. The slice from $45,001 to $75,000 ($30,000) at 30% is $9,000. Income tax totals $13,288.00. Add the 2% Medicare levy ($1,500.00) for a total of $14,788.00, leaving $60,212.00 after tax. The marginal rate is 30%, meaning the next dollar earned keeps 68 cents after tax and levy, while the effective rate across all income is under 20%.
Marginal vs Effective: the Bit People Get Wrong
Moving into a higher bracket never makes you poorer. Only the dollars above each threshold face the higher rate, so earning more always leaves more after tax. The marginal rate answers "what do I keep from a raise," and the effective rate answers "what share did the ATO take overall." Salary-sacrifice into super is taxed at 15% instead of your marginal rate, which is why it is the most common legal tax play for Australians in the 30% and 37% brackets.
My practical advice: get the deductions right before you stress about brackets. Work-from-home fixed-rate claims, professional memberships, and income protection premiums outside super are the everyday items people forget, and each one comes off the top at your marginal rate. A $1,000 deduction saves a 30% bracket earner $300 plus $20 of Medicare levy. For withholding estimates through the year, the paycheck calculator helps you sanity-check what your employer withholds each cycle.
Estimates for planning only, not financial advice.
Frequently Asked Questions
What are Australia's income tax brackets for 2025-26?
For residents: 0% to $18,200, 16% on $18,201 to $45,000, 30% on $45,001 to $135,000, 37% on $135,001 to $190,000, and 45% above $190,000. These match 2024-25. The 16% rate falls to 15% from 1 July 2026 and 14% from 1 July 2027 under already-legislated cuts.
What is the Medicare levy?
A 2% levy on taxable income that funds Australia's public health system, charged on top of income tax. Low-income earners pay a reduced rate or nothing, and some categories are exempt. High earners without private hospital cover can also face the Medicare levy surcharge of 1% to 1.5%.
Does earning more push all my income into a higher bracket?
No. Australia uses marginal rates, so a higher rate applies only to income above each threshold. Crossing from $135,000 to $136,000 costs 37 cents on that one extra dollar, not on the whole $136,000. Earning more always increases after-tax income.
What is the Low Income Tax Offset?
LITO cuts up to $700 off the tax bill for lower earners, phasing out completely at $66,667. Combined with the $18,200 tax-free threshold, it means someone earning around $22,575 can pay effectively no net tax. This calculator shows tax before offsets.
Are non-residents taxed differently?
Yes. Non-residents get no tax-free threshold and pay 32.5c per dollar up to $135,000 under a separate scale, with higher rates above. Working holiday makers have their own 15% flat rate on the first dollars. This calculator is for residents only.
Is superannuation taxed as income?
Employer super contributions are generally taxed at 15% going into the fund, not at your marginal rate, which is the main tax advantage of salary sacrifice. Withdrawals after preservation age are typically tax-free. Division 293 adds extra tax for very high earners.
When is the Australian tax return due?
October 31 following the June 30 year-end if you lodge yourself, or later, usually May 15, if a registered tax agent lodges for you. The ATO pre-fills most salary and bank interest data, but deductions are on you to claim.
What deductions do Australians commonly miss?
The work-from-home fixed rate, union and professional membership fees, income protection premiums paid outside super, charitable donations over $2, and the cost of managing tax affairs itself. Each dollar deducted saves tax at your marginal rate plus the Medicare levy.
How does HELP/HECS debt affect take-home pay?
Student loan repayments are collected through the tax system once your income passes the repayment threshold, currently in the mid-$50,000s, starting at 1% and rising with income. It is withheld by your employer on top of normal tax, so it feels like extra tax but pays down your loan.
Should I salary-sacrifice into super?
For most people in the 30% and 37% brackets, yes: contributions are taxed at 15% instead of your marginal rate, an instant 15 to 22 cent saving per dollar. Watch the annual concessional cap, currently $30,000, because excess contributions lose the advantage.