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Australia Income Tax Calculator

Enter your annual income to estimate your ATO income tax, 2% Medicare levy, and take-home pay. Includes the Stage 3 tax cuts and rules for multiple financial years.

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Tax Calculator

Australia — 2026 Tax Year

2026 Tax Year

Select the tax year to view applicable rules and rates

This is an estimate. Consult a tax professional for accurate calculations.

Enter your income to calculate

Fill in your gross income and filing status, then calculate to see your tax breakdown.

How to use Australia Income Tax Calculator

This Australian income tax calculator estimates your resident income tax and 2% Medicare levy based on your annual income and the financial year you select. Choose between the 2023-24, 2024-25, 2025-26 and 2026-27 financial years in the year selector — 2024-25 and 2025-26 reflect the Stage 3 tax cuts (16% and 30% rates), 2026-27 applies the legislated cut of the 16% rate to 15%, while 2023-24 uses the older 19% and 32.5% structure. The calculator shows your effective tax rate, marginal rate and a full breakdown by bracket, plus your estimated take-home pay.

  1. Select your financial year (2023-24, 2024-25, 2025-26, or 2026-27) from the dropdown.
  2. Enter your annual gross income (salary and wages before tax).
  3. Keep the filing status as Individual — Australia taxes individuals, not couples.
  4. Click Calculate to see your income tax, 2% Medicare levy, effective rate and marginal rate.
  5. Review the bracket-by-bracket breakdown and your estimated take-home pay.

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How Australian tax brackets work

Australia uses a progressive resident tax system. The first $18,200 is tax-free, then each bracket applies only to the income within its range — not your whole income. For example, on $80,000 in 2024-25 you pay nothing on the first $18,200, 16% on the next $26,800 ($4,288), and 30% on the remaining $35,000 ($10,500), totalling $14,788 in income tax — an effective income-tax rate of about 18.5%, well below the 30% marginal rate.

2024-25 resident tax brackets
Income RangeTax RateTax on this bracket
$0 – $18,2000%Nil (tax-free threshold)
$18,201 – $45,00016%16c per $1 over $18,200
$45,001 – $135,00030%$4,288 + 30c per $1 over $45,000
$135,001 – $190,00037%$31,288 + 37c per $1 over $135,000
$190,001+45%$51,638 + 45c per $1 over $190,000

The Medicare levy

On top of income tax, most Australian residents pay a 2% Medicare levy on their taxable income to help fund the public health system. On $80,000 income that is $1,600. Low-income earners may pay a reduced rate or be exempt, and high earners without private hospital cover may pay an additional Medicare Levy Surcharge of 1–1.5% — neither of which is modelled here. This calculator applies a flat 2% for simplicity.

Effective versus marginal tax rate

Your effective tax rate is your total tax divided by total income — your true average. Your marginal tax rate is the rate on your next dollar, set by the highest bracket you reach. On $80,000 in 2024-25 your marginal rate is 30%, but because the first $18,200 is tax-free and the next band is only 16%, your effective income-tax rate is about 18.5%. Understanding the difference helps with decisions like overtime, bonuses, or salary sacrifice.

No state income tax in Australia

Unlike the United States or Canada, Australian states and territories do not levy personal income tax. All income tax is federal and collected by the ATO. This means your ATO income tax plus the Medicare levy is the full picture — there is no extra state layer to add, which is why this calculator has no region selector.

Worked examples

Individual, $45K income, 2024-25

Inputs: $45,000 income

Result: ~$4,288 income tax · $900 Medicare levy · 9.5% effective · 16% marginal

Individual, $80K income, 2024-25

Inputs: $80,000 income

Result: ~$14,788 income tax · $1,600 Medicare levy · 18.5% effective · 30% marginal

Individual, $135K income, 2024-25

Inputs: $135,000 income

Result: ~$31,288 income tax · $2,700 Medicare levy · 23.2% effective · 30% marginal

Glossary

Tax-free threshold
The first $18,200 of resident income, which is not taxed.
Medicare levy
A 2% levy on taxable income that helps fund Australia’s public health system.
Effective tax rate
Total tax owed divided by total income — your true average tax rate.
Marginal tax rate
The tax rate applied to your next dollar of income, set by the highest bracket you reach.
Stage 3 tax cuts
Rate changes from 1 July 2024 that lowered the 19% rate to 16% and the 32.5% rate to 30%.
Financial year
Australia’s tax year, running 1 July to 30 June.
ATO
The Australian Taxation Office — the federal authority that administers income tax.
Resident for tax purposes
A status that entitles you to the tax-free threshold and resident tax rates.

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