Tax & government Australia
Income Tax Calculator Australia
Australian income tax is four marginal rates stacked on a tax-free first $18,200, with the Medicare levy added on top and a small offset for lower earners. This calculator applies all of it to your income, shows each step, and gives your take-home pay by the week, fortnight, month or year.
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Take-home pay
—Per fortnight
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Income tax
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Medicare levy
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HELP repayment
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Share of income taken
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Kept from the next $100
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How your income is taxed
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; scheduled to fall to 14% on 1 July 2027
The 2025-26 figure. The ATO had not published 2026-27 reduction thresholds when checked; it only affects incomes up to about $35,000
Study Assist 2026-27. The ATO's HELP table page still showed $67,000 when checked
An estimate, not a tax assessment or advice. An estimate from published rates, not a tax assessment or tax advice. It takes your taxable income to equal the income entered and does not model deductions, other offsets, the Medicare levy surcharge or non-resident rates. The ATO assesses your actual tax when your return is processed; a registered tax agent can advise on your own situation.
How much tax will I pay on my income in Australia?
For 2026-27 an Australian resident pays nothing on the first $18,200, 15% from $18,201 to $45,000, 30% to $135,000, 37% to $190,000 and 45% above that, plus the 2% Medicare levy. On $90,000 that is $17,520 tax and $1,800 Medicare, leaving $70,680.
Why the same salary can give different answers on different calculators
Run the same salary through several Australian tax calculators and you will often get answers that differ by hundreds of dollars. The cause is almost never arithmetic; it is a choice about what to include.
The first is the year. The lowest rate fell from 16% to 15% on 1 July 2026, so a calculator still on 2025-26 rates overstates tax on every dollar between $18,201 and $45,000. The second is the low income tax offset, which some tools leave out and which is worth up to $700. The third is the Medicare levy's low-income reduction, which matters below about $35,000. The fourth is whether a HELP repayment is included, and the fifth is whether the income entered already has super taken out of it.
This page shows every line, so you can see which of those applies to you and check it against your own payslip.
What happens at lower incomes
At $40,000 the brackets give $3,270.00 of tax, but the low income tax offset removes $575.00, leaving $2,695.00. The Medicare levy is $800.00, so take-home pay is $36,505.00.
Below the low-income threshold no Medicare levy is payable at all, and between that threshold and the upper one the levy phases in at 10 cents per dollar until it reaches the full 2%. The ATO publishes the thresholds separately for singles and families and for seniors; this calculator uses the single figure.
The Medicare levy low-income thresholds shown are for 2025-26. The ATO had not published 2026-27 figures when we checked, which is why the field is editable.
How this is calculated
Four stacked rates, one offset, one levy and an optional repayment. Only the dollars inside a bracket are charged at that bracket's rate.
tax before offsets = 15% of income from $18,201 to $45,000 + 30% from $45,001 to $135,000 + 37% from $135,001 to $190,000 + 45% above $190,000low income tax offset = $700 to $37,500, then falls 5c per dollar to $325 at $45,000, then 1.5c per dollar to nil at $66,667income tax = tax before offsets − offset (the offset can bring tax to nil, never below)Medicare levy = 2% of income, phased in at 10c per dollar above the low-income thresholdtake-home pay = income − income tax − Medicare levy − HELP repayment (if you have a debt)
The headline rates are marginal, which is the single most misunderstood thing about Australian tax. Earning into the 37% bracket does not mean 37% of everything is taxed; it means 37 cents is taken from each dollar above $135,000 and the dollars below it are charged exactly as before. A pay rise therefore cannot reduce your take-home pay through the brackets alone.
The Medicare levy and the offset are where small kinks appear. The offset removes up to $700 of tax for lower earners and then fades out, so between about $37,500 and $66,667 each extra dollar is taxed slightly more heavily than the bracket suggests. The figure labelled 'Kept from the next $100' is measured by running the whole calculation again on $100 more, so it already includes every one of these effects.
A worked example: $90,000 a year
A resident on a $90,000 salary with no HELP debt, working through the 2026-27 brackets.
- First $18,200$0
- 15% of $26,800 ($18,201 to $45,000)$4,020.00
- 30% of $45,000 ($45,001 to $90,000)$13,500.00
- Income tax$17,520.00
- Low income tax offsetnil, income is above $66,667
- Medicare levy, 2% of $90,000$1,800.00
- Take-home pay$70,680.00
$70,680.00 a year, or $2,718.46 a fortnight — 78.5% of the gross income.
Employer super of 12% is paid into your fund on top of the $90,000 and is not part of your take-home pay.
What this calculator leaves out
It takes your taxable income to equal the income you type in. Work-related deductions, the work from home deduction, investment losses, and offsets other than the low income tax offset are not modelled, and neither are the Medicare levy surcharge for people without private hospital cover, reportable fringe benefits, or salary sacrifice.
It also applies resident rates. Non-residents and working holiday makers are taxed on different scales, so the result would be wrong for them. Finally, your employer withholds tax using the ATO's schedules, which are an approximation; the tax actually owed is settled when your return is assessed, so a refund or a bill at the end of the year is normal.
Super is not in your take-home pay
The super guarantee rose to 12% on 1 July 2025 and is paid by your employer into your super fund on top of your salary. It is not deducted from your pay and does not appear in the take-home figure; the line shown under the breakdown is a memo so you can see what is being added to your fund.
What this calculator does not do
- Resident rates only — not non-residents or working holiday makers
- Takes taxable income to equal the income entered; no deductions are modelled
- Only the low income tax offset is applied; seniors, private health and other offsets are not
- The Medicare levy surcharge is not included
- HELP uses taxable income as repayment income; fringe benefits and investment losses are not added
- Withholding on a payslip is an estimate; the ATO's assessment is the final figure
Common questions
How much tax do I pay on $90,000 in Australia?
For 2026-27 a resident pays $17,520.00 income tax and $1,800.00 Medicare levy on $90,000, a total of $19,320.00, which leaves $70,680.00 a year before deductions. That is about $2,718.46 a fortnight. No offset applies because the low income tax offset ends at $66,667.
What are the Australian tax brackets for 2026-27?
Nothing on the first $18,200, then 15% from $18,201 to $45,000, 30% from $45,001 to $135,000, 37% from $135,001 to $190,000 and 45% above $190,000. The Medicare levy of 2% is charged on top. The lowest rate was 16% until 30 June 2026.
Does this include the Medicare levy?
Yes. It charges 2% of income, with the low-income reduction applied, and shows it as its own line. The Medicare levy surcharge for people without private hospital cover is not included.
Why is the tax on my payslip different from this result?
Employers withhold tax using ATO schedules that approximate your final liability, and the tax-free threshold is normally claimed from one employer only. The amount actually owed is assessed when you lodge, which also brings in your deductions and offsets.
Does super come out of my take-home pay?
No. The 12% super guarantee is paid by your employer on top of your salary into your fund. The calculator shows it as a memo line so you can see it, but it is not deducted from the take-home figure.
Does this work for non-residents or working holiday makers?
No. Those taxpayers are taxed on different scales without the same tax-free threshold, so the resident rates used here would give a wrong answer.
Where these numbers come from
- Australian Taxation Office — tax rates for Australian residents Resident brackets: nil to $18,200, then 15%, 30%, 37% and 45%
- Australian Taxation Office — low income tax offset $700 to $37,500, tapering at 5c then 1.5c per dollar to nil at $66,667
- Australian Taxation Office — Medicare levy reduction for low-income earners Single thresholds of $28,011 and $35,013 for 2025-26; no 2026-27 figures were published when checked
- Study Assist (Australian Government) — HELP loan repayments 2026-27 minimum repayment income of $69,528 and the marginal bands built on it
- Australian Taxation Office — the final super guarantee rate increase Super guarantee of 12% from 1 July 2025
Rates last verified 2026-10-26 Every figure the 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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