Tax & government Australia
After Tax Calculator Australia
Australian income tax is charged in steps: nothing on the first $18,200, then 15%, 30%, 37% and 45% on the slices above. This calculator shows how much of your income falls in each slice, what each costs and what you keep, so you see why your tax is what it is.
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Income after tax
—Income tax
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Medicare levy
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HELP repayment
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Effective rate
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Marginal rate on the next dollar
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Kept from the next $1,000
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Tax by bracket
Working with a different rate? Edit the rates this calculator uses
These are the figures we verified on 2026-10-26. Change them to work with a historic period, or with a new rate that has been announced but which we have not published yet.
Reduced from 16% on 1 July 2026
An estimate, not a tax assessment. An estimate for a resident individual on salary alone. It ignores deductions, offsets other than the low income tax offset and the Medicare levy surcharge.
How much tax do I pay on my income in Australia?
Tax is charged only on the part of your income in each bracket: nil to $18,200, 15% to $45,000, 30% to $135,000, 37% to $190,000 and 45% above, plus the 2% Medicare levy. On $120,000 that is $26,520 of income tax and $2,400 of Medicare levy, leaving $91,080.
How the steps work
Only the income inside each bracket is taxed at that bracket's rate. The first $18,200 is the tax-free threshold, which every resident gets once. Because each bracket is taxed separately, a raise never pushes your take-home pay below what it was before.
The low income tax offset reduces tax for people on lower incomes, phasing out by $66,667, and the Medicare levy adds 2% for most people.
Effective versus marginal
Your marginal rate decides the value of an extra dollar earned or a deduction claimed: at $120,000 it is 32 cents in the dollar including Medicare. Your effective rate is what you actually pay on average. Both are shown.
To see your pay by pay period, use the take-home pay calculator.
How this is calculated
The rule, step by step, so you can check any figure by hand.
tax = the sum, over each bracket, of the income in that bracket × its ratebrackets 2026-27: $0 to $18,200 nil; to $45,000 15%; to $135,000 30%; to $190,000 37%; above 45%less the low income tax offset, plus the 2% Medicare levy (with its low-income reduction)effective rate = total tax ÷ income; marginal rate = rate on the next dollar plus Medicare
The effective rate is the number that answers 'how much of my pay goes in tax', and it is always lower than the marginal rate, the rate on your last dollar. Earning more never leaves you with less: moving into a higher bracket only raises the rate on the part above the threshold.
Looking at the brackets together explains common surprises: a person on $120,000 pays 30% on the slice above $45,000 and 15% on the slice before it, so their average rate is around 24%, not 30%.
A worked example
An income of $120,000.
- $0 to $18,200 at 0%$0
- $18,201 to $45,000, $26,800 at 15%$4,020
- $45,001 to $120,000, $75,000 at 30%$22,500
- Income tax$26,520
- Medicare levy$2,400
- After tax$91,080
$91,080 after tax, an effective rate of 24.1%.
The next dollar is taxed at 32% (30% plus 2%).
From 1 July 2026
The lowest rate fell from 16% to 15% on 1 July 2026 and is scheduled to fall to 14% on 1 July 2027. The rate is a field in the panel, so you can test the effect.
What it leaves out
Deductions, other offsets, capital gains, the Medicare levy surcharge and non-resident rates are not modelled.
What this calculator does not do
- Residents only
- Salary income; no deductions or other offsets
- No Medicare levy surcharge
- Rates are 2026-27
Common questions
What are the tax brackets in Australia for 2026-27?
Nil to $18,200; 15% to $45,000; 30% to $135,000; 37% to $190,000; 45% above.
What is the difference between marginal and effective tax rate?
Marginal is the rate on the next dollar; effective is the average rate on all of your income.
Does a pay rise ever leave me worse off?
Not from the tax brackets, which only tax the extra at the higher rate.
Is the Medicare levy included?
Yes, at 2%, with its low-income reduction.
Is the tax-free threshold the same for everyone?
Residents can claim it once. A second job is taxed without it.
Where these numbers come from
- ATO — tax rates, Australian residents 2026-27 resident brackets, 15% lowest rate and the $18,200 tax-free threshold
Rates last verified 2026-10-26 Every figure Australian Taxation Office sets is re-checked against the source at least once a year, and again whenever a change is announced. Out of date? Tell us and we will fix it.
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