Loading...
Loading...
This Australian tax calculator converts your gross salary into exact take-home pay by applying the official ATO tax tables for FY2025-26. Every dollar of your salary is split into 5 components: income tax (progressive marginal rates from 0% to 45%), the 2% Medicare levy, any HECS-HELP repayments, the "Low Income Tax Offset" (LITO), and your employer's superannuation guarantee contribution.
Your income tax is calculated in stages — not all at one rate. The first $18,200 is tax-free, then each portion above that threshold is taxed at progressively higher marginal rates: 16% up to $45,000, 30% up to $135,000, 37% up to $190,000, and 45% on every dollar above $190,000. This means a person earning $80,000 pays an effective tax rate of just 20.5%, not the 30% marginal rate that applies to their top bracket.
Use our Income Tax Calculator for a detailed bracket-by-bracket breakdown, our Superannuation Calculator to model your employer's SG contribution over time, or our Take-Home Pay Calculator to compare net pay across different salary levels.
Australia uses 5 income tax brackets for residents in the 2025-26 financial year. Each bracket taxes only the portion of income that falls within its range — not your entire salary.
| Income Range | Tax Rate | Tax on This Bracket |
|---|---|---|
| $0 – $18,200 | 0% | Tax-free threshold |
| $18,201 – $45,000 | 16% | 16c for each $1 over $18,200 |
| $45,001 – $135,000 | 30% | 30c for each $1 over $45,000 |
| $135,001 – $190,000 | 37% | 37c for each $1 over $135,000 |
| $190,001 – + | 45% | 45c for each $1 over $190,000 |
ATOFull tax brackets guide with worked examples →
Marginal tax means each bracket's rate applies only to the income within that bracket. On an $80,000 salary in FY2025-26, your tax is calculated across 3 separate brackets:
Total income tax: $14,788. Your effective tax rate is 18.5% — far below the 30% marginal rate. The common mistake of applying 30% to the entire $80,000 would overstate your tax by $9,212.
The Stage 3 tax cuts took effect on 1 July 2024 and continue into FY2025-26. The 19% bracket rate dropped to 16%, and the 30% bracket ceiling expanded from $120,000 to $135,000. A worker earning $100,000 saves $2,179 per year compared to the pre-Stage-3 rates. A worker earning $60,000 saves $1,179. A worker earning $150,000 saves $3,729.
From 1 July 2026 (FY2026-27), the 16% bracket rate reduces further to 15%, delivering an additional saving of up to $268 per year for workers in that bracket.
Take-home pay varies significantly across salary levels due to progressive taxation. The table below shows the exact tax, Medicare levy, and after-tax income for 10 common Australian salary levels in FY2025-26.
| Gross Salary | Income Tax | Medicare Levy | Take-Home Pay | Effective Rate | Super (12%) |
|---|---|---|---|---|---|
| $40,000 | $3,088 | $800 | $36,112 | 9.7% | $4,800 |
| $50,000 | $5,788 | $1,000 | $43,212 | 13.6% | $6,000 |
| $60,000 | $8,788 | $1,200 | $50,012 | 16.6% | $7,200 |
| $70,000 | $11,788 | $1,400 | $56,812 | 18.8% | $8,400 |
| $80,000 | $14,788 | $1,600 | $63,612 | 20.5% | $9,600 |
| $90,000 | $17,788 | $1,800 | $70,412 | 21.8% | $10,800 |
| $100,000 | $20,788 | $2,000 | $77,212 | 22.8% | $12,000 |
| $120,000 | $26,788 | $2,400 | $90,812 | 24.3% | $14,400 |
| $150,000 | $36,788 | $3,000 | $110,212 | 26.5% | $18,000 |
| $200,000 | $56,288 | $4,000 | $139,712 | 30.1% | $24,000 |
Figures assume Australian resident, no HECS-HELP debt, and LITO applied where eligible. Use the calculator above for your exact salary.
Four compulsory deductions reduce your gross salary to net pay: income tax, the Medicare levy, the "Medicare Levy Surcharge" (for high earners without private health), and HECS-HELP repayments. Superannuation is paid separately by your employer and does not reduce your take-home pay.
Progressive marginal rates from 0% to 45%, applied in stages on your taxable income. The first $18,200 is tax-free.
Income Tax Calculator →A flat 2% levy on your taxable income that funds Australia's public healthcare system (Medicare).
Medicare Levy Guide →Compulsory repayments start at $67,000 under the new marginal system for FY2025-26.
HECS-HELP Calculator →Your employer pays 12% of your salary into your super fund — on top of your salary, not deducted from it.
Superannuation Calculator →The "Low Income Tax Offset" is a non-refundable tax offset of up to $700 per year. Earners below $37,500 receive the full $700 offset. The offset phases out in 2 stages: a 5-cent reduction for every dollar earned between $37,500 and $45,000, followed by a 1.5-cent reduction for every dollar earned between $45,000 and $66,667. Earners above $66,667 receive no LITO benefit.
LITO raises the effective tax-free threshold from $18,200 to $22,575. For example, a worker earning $30,000 receives the full $700 offset, reducing their tax bill from $1,888 to $1,188. Read our Low Income Tax Offset guide for full phase-out tables.
The "Medicare Levy Surcharge" (MLS) is an additional levy of 1% to 1.5% charged to high-income earners who do not hold private hospital cover. The MLS applies to singles earning above $93,000 and families earning above $186,000. Three tiers apply:
A worker earning $120,000 without private health insurance pays an MLS of $1,500 per year (1.25% of $120,000) — on top of the standard 2% Medicare levy. This makes the total health-related levy $3,900 instead of $2,400. Holding any eligible private hospital cover eliminates the surcharge entirely. See our Medicare Levy Guide for the full threshold tables.
Your employer pays a "Superannuation Guarantee" (SG) of 12% of your Ordinary Time Earnings into your nominated super fund for FY2025-26. This is a compulsory employer obligation — the SG rate increased from 11.5% (FY2024-25) to 12% on 1 July 2025.
On a salary of $80,000, your employer contributes $9,600 per year ($800 per month) into your super fund. On $100,000, the employer contributes $12,000. On $60,000, the contribution is $7,200. These amounts are paid on top of your gross salary and do not reduce your take-home pay.
Employers pay super quarterly, within 28 days of each quarter's end (28 October, 28 January, 28 April, 28 July). Late payments trigger the Superannuation Guarantee Charge (SGC), which includes interest and an administration fee. The "Maximum Super Contribution Base" for FY2025-26 is $62,500 per quarter ($250,000 annualised) — employers are not required to pay SG on earnings above this cap.
The "concessional contributions" cap (including employer SG, salary sacrifice, and personal deductible contributions) is $30,000 per year. Exceeding this cap triggers additional tax at your marginal rate. Use our Superannuation Calculator to model your exact employer contributions, or read the Superannuation Guide for a complete overview of contribution caps, investment options, and withdrawal rules.
HECS-HELP repayments reduce take-home pay by $0 to 10% of income, depending on your salary. From FY2025-26, Australia uses a new marginal repayment system that replaces the previous flat-percentage model. Repayments start when "Repayment Income" exceeds $67,000 — and you only pay on the amount above the threshold, not on your total income.
| Repayment Income | Marginal Rate | Calculation |
|---|---|---|
| Below $67,000 | 0% | No repayment required |
| $67,001 – $125,000 | 15% | 15c per $1 over $67,000 |
| $125,001 – $179,285 | 17% | $8,700 + 17c per $1 over $125,000 |
| $179,286+ | 10% | 10% of total repayment income |
At $65,000: Your income is below the $67,000 threshold, so your HECS repayment is $0. Your take-home pay is unaffected by your student debt.
At $90,000: You pay 15% on the $23,000 above $67,000, equalling a HECS repayment of $3,450 per year ($132.69 per fortnight). Your annual take-home pay drops from $70,412 to $66,962.
The new marginal system eliminates the cliff effect from the old model, where crossing a threshold by a single dollar triggered repayments on your entire income. Use our HECS-HELP Calculator for your exact repayment figure, or read the HECS-HELP Guide for the full threshold table.
Five major changes affect Australian workers' pay calculations in the 2025-26 financial year, covering income tax rates, superannuation, student loans, Medicare, and contribution caps.
The calculator above handles the most common scenario — converting a gross salary to take-home pay. For specialised situations (salary sacrifice, contractor rates, redundancy payouts, or reverse-calculating gross from net), use one of the dedicated calculators below.
Income tax in Australia is federal — every state and territory uses the same tax brackets. State-level differences affect employers through payroll tax (a tax on total wages paid), which influences hiring costs but does not directly reduce employee take-home pay. Average salaries also vary by state due to industry composition, cost of living, and labour market conditions.
| State | Payroll Tax Rate | Tax-Free Threshold | Avg. Full-Time Salary |
|---|---|---|---|
| NSW | 5.45% | $1,200,000 | $102,000 |
| VIC | 4.85% | $900,000 | $97,000 |
| QLD | 4.75% | $1,300,000 | $95,000 |
| WA | 5.50% | $1,000,000 | $105,000 |
| SA | 4.95% | $1,500,000 | $89,000 |
| TAS | 4.00% | $1,250,000 | $84,000 |
| ACT | 6.85% | $2,000,000 | $103,000 |
| NT | 5.50% | $1,500,000 | $91,000 |
Payroll tax is paid by employers, not employees. Average salary figures are approximate and based on ABS data. Individual take-home pay uses the same federal income tax brackets in all states.
These 5 errors are the most frequent mistakes Australian workers make when estimating their take-home pay — each one leads to a materially wrong expectation of net income.
These guides explain the rules behind the numbers. Each guide covers the legislation, worked examples, and edge cases for a specific area of Australian tax and payroll.
Last verified: 14 March 2026. Our content is based on the latest information from official Australian government sources.