Income Tax · Calculator

Income Tax Calculator (Australia)

Find your take-home pay, deductions, Medicare levy and optional HELP repayments for 2025-26 through 2027-28.

2025-26 to 2027-28Medicare LevyHELP / HECSLITO + WATO

Includes 2025–26 filing rates, current 2026–27 settings and 2027–28 enacted rates and WATO. Assumes a single Australian resident for Medicare low-income thresholds.

01INPUTS

The 2026-27 year lowers the bottom bracket to 15% and adds a $1,000 instant work-expense deduction.

Before deductions — salary, allowances, interest, dividends, rent.

Actual work claims; these reduce the standard-deduction amount.

Union/professional fees, income protection, eligible business or PSI expenses.

Donations, investment costs, tax-agent fees and other non-labour deductions.

Adds the amount left after relevant actual work expenses reduce the lesser of $1,000 and assessable labour income.

Now law
ITAA 1997 section 25-130 applies from 2026–27. Other labour-related deductions listed above do not reduce this standard amount.

Uses taxable income plus the ATO repayment-income adjustments entered below.

02RESULTS
Awaiting input

Enter your income to estimate tax

Edit inputs ↑

Popular related searches: pay calculator, tax on $100,000 salary, tax on $150,000 salary, tax on $300,000 salary

Private health angle: Medicare Levy & MLS calculator, MLS thresholds 2026-27, is private health insurance worth it?, private health rebate guide

Threshold pages: HELP repayment thresholds, tax on $8,000/month, tax on $3,000/fortnight

Working out your offsets? Use the Tax Offsets Calculator (LITO, WATO, SAPTO).

How income tax works

How income tax is calculated in Australia

Australia uses a progressive tax system. Your income is taxed at increasing rates as it moves through each tax bracket. Only the portion of your income within each bracket is taxed at that bracket's rate.

That is why search terms like "how much tax do I pay on $100k", "after tax salary Australia", or "ATO tax calculator" all map back to the same underlying calculation: resident tax brackets, plus Medicare levy, plus any study loan withholding if relevant.

2025-26 Australian Tax Brackets

Income Range Tax Rate Tax on This Bracket
$0 – $18,200 0% Nil
$18,201 – $45,000 16% 16c for each $1 over $18,200
$45,001 – $135,000 30% $4,288 plus 30c for each $1 over $45,000
$135,001 – $190,000 37% $31,288 plus 37c for each $1 over $135,000
$190,001+ 45% $51,638 plus 45c for each $1 over $190,000

The Medicare levy is generally 2% of taxable income, with a lower amount or no levy at eligible low incomes. Family thresholds, exemption days and the separate Medicare levy surcharge are outside this page's estimate.

HELP / HECS

HELP / HECS repayments

From 2025–26, HELP uses marginal repayment bands. The first bands apply only to repayment income above each threshold; the highest tier is calculated as 10% of total repayment income. Toggle HELP/HECS above to add the compulsory repayment estimate.

2025–26 minimum threshold: $67,000 with a marginal 15% repayment rate
Highest tier: 10% of total repayment income above the selected year's top threshold
Repayment income can add reportable fringe benefits, reportable super, net investment losses and exempt foreign employment income, while excluding assessable FHSS released amounts

For a full breakdown of how each bracket works, see Australian tax brackets 2025-26 and our guide to marginal tax rates in Australia.

Worked example: $90,000 salary

Here is how income tax is calculated step-by-step on a $90,000 annual salary for 2025-26:

$0 – $18,200 at 0% = $0
$18,201 – $45,000 at 16% = $4,288
$45,001 – $90,000 at 30% = $13,500

Income tax: $17,788

Medicare levy (2%): $1,800

Total tax: $19,588

Take-home pay: $70,412

Effective tax rate: 21.8% | Marginal rate: 30%

The effective rate (21.8%) is much lower than the marginal rate (30%) because the first $18,200 is tax-free and the next $26,800 is taxed at only 16%. This is how progressive tax works — you never "lose money" by earning more.

Income tax examples

Here's how much tax you'd pay at common salary levels (including 2% Medicare levy):

Annual Income Income Tax Medicare Levy Total Tax Take-Home Pay
$60,000$8,688$1,200$9,888$50,112
$80,000$14,788$1,600$16,388$63,612
$100,000$20,788$2,000$22,788$77,212
$120,000$26,788$2,400$29,188$90,812
$150,000$36,838$3,000$39,838$110,162

Tax-saving tip: Salary sacrificing to super can reduce your taxable income and lower your tax bill while boosting your retirement savings.

Common searches

Common income tax searches

Many people are not looking for a generic tax table. They want a direct answer to questions like:

How much tax do I pay on a $100,000 salary?
What is my take-home pay after tax in Australia?
How much extra tax do I pay if I go over the next bracket?
Does HELP or HECS get added on top?

This calculator is designed to answer those questions quickly. If you want a page built around a specific salary amount, start with the linked salary guides above.

Coverage

What this calculator includes

Resident income tax for 2025-26 to 2027-28, including LITO
Enacted standard work-expense deduction and 2027-28 WATO inputs
Medicare levy with the single low-income reduction
Optional HELP/HECS repayments using the selected year's thresholds
Australian resident tax rates

Not included

Senior Australians and Pensioners Tax Offset (SAPTO)
Private health insurance rebate or Medicare levy surcharge
Family, senior and special Medicare levy thresholds
Non-resident or working holiday maker rates
Offsets and deductions other than the options shown above

This is a simplified estimate. Your actual tax may differ based on your individual circumstances.

FAQ
How is income tax calculated in Australia?
Australia uses progressive tax rates. You pay 0% on the first $18,200, then increasing rates on income above that threshold. Only the portion of income in each bracket is taxed at that bracket's rate.
Does this include Medicare levy?
Yes. The calculator applies the standard 2% Medicare levy and the single low-income reduction. It does not model family or senior thresholds, other exemptions, or the Medicare levy surcharge. See ATO Medicare levy.
Is this an official ATO tax calculator?
No. This is an independent calculator built using the current resident tax brackets, Medicare levy settings, and HELP thresholds. It is designed to mirror the core ATO rules for fast estimates, but it is not an official ATO tool and does not include every exemption, offset, or special case.
Does this calculator include HELP or offsets?
Yes. LITO is automatic. From 2027-28, WATO is calculated from the net labour income you enter. HELP/HECS uses taxable income plus the ATO repayment-income adjustments entered when the toggle is on. Other offsets remain excluded.

Have HELP debt? The HELP Repayment Calculator provides a dedicated repayment breakdown. See ATO rates and thresholds.
Is this calculator accurate for freelancers?
It can include individual business income and deductions, but the work-expense standard deduction uses the narrower statutory assessable-labour-income definition. Sole-trader business income may count toward WATO from 2027-28 but does not by itself qualify for the standard deduction.
Which tax year does this use?
Choose 2025–26, 2026–27, or 2027–28 in the calculator. It defaults to the current 2026–27 financial year and updates tax brackets, LITO, Medicare thresholds, HELP thresholds, and supported policy settings together.
Are these calculations updated for 2025–26?
Yes. The calculator includes 2025–26 for returns being lodged now and defaults to 2026–27 for current-year estimates.

Tax Accuracy & Sources

Reviewed: 17 July 2026 · Tax year: 2025-26 to 2027-28

Covers Australian resident income tax, entered deductions, LITO, WATO from entered labour amounts, the single-person Medicare levy and optional HELP repayment-income adjustments. It excludes MLS, family Medicare settings, SAPTO, other offsets, foreign-resident rules and full return complexity.

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