SEC. 02 — INCOME

Australia Income Tax Calculator

See exactly how much tax is owed on any income — bracket by bracket, with your effective and marginal rate.

Tax payable INCOME TAX BREAKDOWN
TAX RULES —
$—
Total tax payable, per year
Adjust your income on the left — the bracket breakdown below recalculates instantly.
01 · NET After-tax income
$—
Annual income minus total tax payable.
02 · EFF Effective tax rate
—%
Total tax ÷ total income — your real overall rate.
03 · MRG Marginal tax rate
—%
The rate on your next dollar earned.

Bracket by bracket

How much of your income falls in each tax bracket, and what's paid on it.

How it works

This calculator applies Australia's progressive tax system exactly as legislated, in three steps.
  1. Enter your taxable income

    Total assessable income for the year, after allowable deductions — not your gross salary if you have significant deductions or investment income/losses.

  2. Tax is applied bracket by bracket

    Each dollar is taxed at the rate for the bracket it falls into — the first $18,200 at 0%, the next slice at the second-bracket rate, and so on. This is why your effective rate is always lower than your marginal rate.

  3. The Medicare levy is added

    A flat 2% of taxable income is added on top when enabled, giving total tax payable and your after-tax income.

Worked example

Priya has a taxable income of $72,000 for FY2026–27. Here's exactly how her tax is worked out, bracket by bracket.
$0–$18,200 (0%)
$0
$18,201–$45,000 (15%)
$4,020
$45,001–$72,000 (30%)
$8,100
Income tax
$12,120
Medicare levy (2%)
$1,440
Total tax
$13,560
After-tax income
$58,440
Effective rate
18.8%

Priya's marginal rate is 30% (the rate on her next dollar earned), but her effective rate is only 18.8% — the gap is the tax-free threshold and lower brackets doing their job.

Methodology & assumptions

Brackets used (Australian resident). Two years are built in. 2025–26: $0–$18,200: 0% · $18,201–$45,000: 16% · $45,001–$135,000: 30% · $135,001–$190,000: 37% · $190,001+: 45%. 2026–27 (from 1 July 2026) is identical except the second bracket drops to 15% under a legislated tax cut.

Medicare levy. A flat 2% is added when enabled, ignoring the low-income phase-in threshold and the Medicare levy surcharge for high earners without private hospital cover.

Not modelled: the Low Income Tax Offset (LITO), HECS/HELP repayments, non-resident or working-holiday-maker tax rates, and any other offsets or deductions.

This tool is for general illustration only and is not tax advice — for anything that matters, check with the ATO or a registered tax agent.

Frequently asked questions

Common questions about how Australian income tax actually works.
How accurate is this calculator?
The bracket math itself is exact for the rates used. What can make it diverge from your actual bill is what's excluded — LITO, HECS/HELP, and other offsets — all of which would change your final number. See "What assumptions are used?" below.
What assumptions are used?
Australian tax residency, the financial year you select, and a flat 2% Medicare levy when enabled. The Low Income Tax Offset, HECS/HELP, and non-resident rates aren't modelled — full detail is in "Methodology & assumptions" above.
Is superannuation included?
Not directly — enter your taxable income as it would appear on your tax return, which already excludes employer Superannuation Guarantee contributions (those aren't part of assessable income). If you salary-sacrifice extra into super, make sure the income you enter here reflects that reduction.
Does it account for HECS/HELP debt?
No. HECS/HELP is a separate, income-tested compulsory repayment calculated on top of your income tax, not part of the bracket system shown here. If you have a HECS/HELP debt, your total amount payable to the ATO will be higher than the "total tax" figure above.
What's the difference between "effective" and "marginal" tax rate?
Effective rate is your total tax divided by your total income — the real, blended rate you pay overall. Marginal rate is the rate charged on your next dollar earned, which is always higher than your effective rate because of the tax-free threshold and lower brackets underneath it.
What is the tax-free threshold?
The first $18,200 of taxable income each financial year is tax-free for Australian residents. Everyone gets this, regardless of total income — it's not means-tested.
Do I only pay the top bracket's rate on my whole income?
No — this is a common misconception. Tax brackets are marginal, meaning each rate only applies to the slice of income within that bracket. Earning $50,000 doesn't mean all of it is taxed at 30%; only the portion above $45,000 is. The bracket breakdown above shows exactly how it splits.
What's "taxable income," and is it the same as my salary?
Not quite. Taxable income is your total assessable income minus allowable deductions (like work-related expenses). For most PAYG employees with no significant deductions, it's close to gross salary, but if you claim deductions, salary sacrifice, or have investment income/losses, the two figures diverge.
What is LITO, and why isn't it factored in here?
The Low Income Tax Offset can reduce tax payable by up to $700 a year for incomes under roughly $66,667, phasing out as income rises. It's left out to keep the bracket math transparent and easy to follow — if your income is in that range, your real tax payable will be somewhat lower than shown here.

Sources & further reading

The publicly available data and legislation this calculator's brackets and figures are based on.
Australian Taxation Office
Individual income tax rates, brackets & Medicare levy
ATO — Low Income Tax Offset
LITO thresholds and phase-out (not modelled in this tool)
Australian Treasury
Legislated tax changes, including the FY2026–27 bracket cut
Australian Bureau of Statistics
Average weekly earnings, for context on typical incomes