Income Tax Calculator Australia 2026-27 — Simple Tax Calculator
From 1 July 2026 the 16% bracket became 15%; this calculator adds the 2% Medicare levy and up to $700 of LITO.
Tax Breakdown
Estimated tax on $80,000 a year
$16,120
income tax + Medicare · $310 per week
Your Tax by Bracket
| Bracket | Income in Bracket | Rate | Tax |
|---|---|---|---|
| $0 – $18,200 | $18,200 | 0% | $0 |
| $18,201 – $45,000 | $26,800 | 15% | $4,020 |
| $45,001 – $135,000 | $35,000 | 30% | $10,500 |
Disclaimer:
Calculations are estimates based on current Australian tax rates published by the ATO. For personal tax advice, consult a registered tax agent.
Based on official ATO tax rates for FY2026-27, last verified 9 October 2026
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People reading this page usually work these out too.
The ATO tax rates for 2025-26 were 0% to $18,200, 16% to $45,000, 30% to $135,000, 37% to $190,000 and 45% above; from 1 July 2026 the 16% bracket became 15%, with other thresholds unchanged. An income tax calculator applies the scale for the chosen year, adds the 2% Medicare levy and subtracts up to $700 of Low Income Tax Offset (LITO). Enter any annual, monthly, fortnightly or weekly income for FY2026-27 in the calculator above.
Australian income tax for FY2026-27 uses 5 brackets: 0% up to $18,200, 15% to $45,000, 30% to $135,000, 37% to $190,000, and 45% above. Most workers also pay the 2% Medicare levy and may have HECS/HELP repayments. Lodging your 2025-26 return? The old 16% rate applied — see the Tax Return Calculator.
What Are the Income Tax Brackets for FY2026-27?
Australia has 5 income tax brackets for resident taxpayers in FY2026-27, ranging from 0% on the first $18,200 to 45% on income above $190,000. The table below shows the full ATO tax brackets with cumulative tax at the top of each bracket.
| Income Range | Tax Rate | Tax on Range | Cumulative Tax |
|---|---|---|---|
| $0 – $18,200 | 0% | $0 | $0 |
| $18,201 – $45,000 | 15% | $4,020 | $4,020 |
| $45,001 – $135,000 | 30% | $27,000 | $31,020 |
| $135,001 – $190,000 | 37% | $20,350 | $51,370 |
| $190,001 – + | 45% | +45c per $1 over $190,000 | — |
The 15% second rate is new: it dropped from 16% on 1 July 2026 under the legislated cost-of-living tax cuts, saving up to $268 a year for anyone earning over $45,000. It is the only bracket change from 2025-26 — see the tax bracket history for every year since 2018.
Non-Resident and Working Holiday Maker Rates
Different scales apply if you are not an Australian resident for tax purposes. Neither group receives the $18,200 tax-free threshold or LITO, and neither pays the Medicare levy.
| Taxpayer Type | FY2026-27 Rates | Full Guide |
|---|---|---|
| Foreign resident | 30% from the first dollar to $135,000, then 37% to $190,000 and 45% above | Non-resident tax → |
| Working holiday maker (417/462 visa) | 15% on the first $45,000, then foreign-resident rates apply above that | Working holiday tax → |
How Is Income Tax Calculated in Australia?
Income tax is calculated with a progressive marginal system: your income is sliced across the brackets and each slice is taxed at that bracket's rate — your whole salary is never taxed at one rate. Here is the exact calculation for a gross salary of $80,000 in FY2026-27:
- Apply the tax-free threshold. The first $18,200 is taxed at 0% — tax on this slice is $0.
- Tax each remaining slice at its bracket rate. $18,201–$45,000 at 15% = $4,020. $45,001–$80,000 at 30% = $10,500. Gross income tax totals $14,520.
- Subtract tax offsets. At $80,000, LITO has fully phased out (it ends at $66,667), so the offset is $0 and net income tax stays at $14,520.
- Add the Medicare levy. 2% of $80,000 = $1,600. Total tax is $16,120.
Take-home pay on $80,000 is $63,880 per year, or $1,228.46 per week. The effective rate is 20.2% — well below the 30% marginal rate, because the lower slices are taxed lightly. For take-home pay with super, HECS and salary sacrifice included, use the pay calculator on our homepage.
How Much Tax Do You Pay at Every Salary?
Quick reference for income tax, Medicare levy, take-home pay and effective tax rate across the salaries Australians most commonly search. Click any salary for the full tax on $80,000-style breakdown with weekly, fortnightly and monthly figures.
| Salary | Income Tax | Medicare Levy | Take-Home | Effective Rate |
|---|---|---|---|---|
| $30,000 | $1,070 | $199 | $28,731 | 4.2% |
| $40,000 | $2,695 | $800 | $36,505 | 8.7% |
| $45,000 | $3,695 | $900 | $40,405 | 10.2% |
| $50,000 | $5,270 | $1,000 | $43,730 | 12.5% |
| $60,000 | $8,420 | $1,200 | $50,380 | 16.0% |
| $70,000 | $11,520 | $1,400 | $57,080 | 18.5% |
| $80,000 | $14,520 | $1,600 | $63,880 | 20.2% |
| $90,000 | $17,520 | $1,800 | $70,680 | 21.5% |
| $100,000 | $20,520 | $2,000 | $77,480 | 22.5% |
| $120,000 | $26,520 | $2,400 | $91,080 | 24.1% |
| $150,000 | $36,570 | $3,000 | $110,430 | 26.4% |
| $200,000 | $55,870 | $4,000 | $140,130 | 29.9% |
Figures use FY2026-27 resident rates with LITO applied where eligible and the Medicare levy's low-income reduction included. HECS-HELP and the Medicare Levy Surcharge are excluded. Taxing a one-off payment instead? See the Bonus Tax Calculator.
Earning close to the full-time median? Tax on $75,000 in Australia has the full breakdown. Salary not listed? Tax on every salary covers $20,000 to $200,000 in $5,000 steps, then up to $500,000.
What Tax Offsets Reduce Your Income Tax?
Tax offsets reduce your final tax bill dollar-for-dollar, unlike deductions, which lower assessable income before the brackets apply. Two offsets matter to most taxpayers.
Low Income Tax Offset (LITO)
Taxpayers earning under $66,667 receive LITO automatically — up to $700 — when their return is assessed. No form is required.
- Income up to $37,500: full $700 offset
- $37,501 – $45,000: reduces at 5c per dollar over $37,500
- $45,001 – $66,667: reduces at 1.5c per dollar over $45,000
Combined with the tax-free threshold, LITO means you pay no net income tax until your income passes $22,867 in FY2026-27. Full LITO guide →
Seniors and Pensioners Tax Offset (SAPTO)
Australians of Age Pension age who meet the rebate-income tests qualify for SAPTO (ATO figures for 2025-26, the year currently being lodged):
- Singles: up to $2,230, shading out from $34,919 and cutting out at $52,759
- Couples: up to $1,602 each, with eligibility tested on combined rebate income up to $87,620
- SAPTO is non-refundable — it can reduce tax to zero but does not generate a refund
Model your exact offset with the SAPTO Calculator.
2025-26 vs 2026-27: What Changed on 1 July 2026?
One bracket changed: the rate on income between $18,201 and $45,000 fell from 16% to 15%. Because that bracket sits under everyone's income, every taxpayer earning above $18,200 gets the cut, capped at $268 a year once income passes $45,000.
| Salary | Income Tax FY2025-26 | Income Tax FY2026-27 | You Save |
|---|---|---|---|
| $30,000 | $1,888 | $1,770 | −$118 |
| $45,000 | $4,288 | $4,020 | −$268 |
| $60,000 | $8,788 | $8,520 | −$268 |
| $80,000 | $14,788 | $14,520 | −$268 |
| $100,000 | $20,788 | $20,520 | −$268 |
| $150,000 | $36,838 | $36,570 | −$268 |
Gross income tax before offsets; LITO and the Medicare levy are identical in both years, so the saving is unaffected. For the 2024 bracket overhaul that preceded this cut, see the Stage 3 tax cuts guide.
Lodging your 2025-26 tax return?
Returns lodged between July and October 2026 cover FY2025-26, which used the old 16% rate — income tax on $80,000 was $14,788, not $14,520. Estimate your refund with the Tax Return Calculator, and see the Tax Refund Guide for the deductions most people forget to claim.
Tax Withheld vs Tax Payable: Why Your Payslip Differs
This calculator shows your annual tax liability — the amount the ATO actually assesses on your income. What comes out of each payslip is PAYG withholding: an estimate your employer deducts using the ATO's withholding schedules, which annualise each pay period in isolation.
The two rarely match to the dollar. Withholding can't see your deductions, a mid-year pay change, a second job, or weeks you didn't work — so most people end the year slightly over-withheld and receive the difference back as a refund after lodging. If you were under-withheld (common with two jobs both claiming the tax-free threshold), the same reconciliation produces a bill.
To check the exact amount your employer should be withholding each pay, see the PAYG withholding tables, or jump straight to the weekly, fortnightly or monthly tax table. Bonuses and back pay are withheld under a separate method — the Schedule 5 tax table.
Beyond Income Tax: Medicare, HECS and Residency
Income tax is usually the biggest deduction from your pay, but it is not the only one:
- Medicare levy — 2% of taxable income for most taxpayers, with a reduction for low incomes. A Medicare Levy Surcharge of 1–1.5% applies above $105,000 (singles) without private hospital cover.
- HECS-HELP repayments — start at $69,528 of repayment income in FY2026-27, at 15% of every dollar above the threshold under the marginal repayment system.
- Non-resident tax — foreign residents pay 30% from the first dollar with no tax-free threshold, while working holiday makers have their own 15% schedule.
See your full pay breakdown with every deduction → Or use the Gross Pay Calculator to reverse-engineer a net pay target back to gross salary.
How this calculator works▼
- Apply the FY2026-27 resident tax brackets to gross income (progressive marginal rates).
- Subtract the Low Income Tax Offset (up to $700 for incomes under $66,667).
- Add the 2% Medicare levy, with the low-income reduction applied.
- Take-home pay = gross salary − net income tax − Medicare levy.
All rates from the ATO, last verified 9 October 2026.
Frequently Asked Questions
Income tax questions and answers
How much income tax do I pay in Australia?
Australian residents pay income tax on a progressive scale in FY2026-27: 0% up to $18,200, 15% from $18,201 to $45,000, 30% to $135,000, 37% to $190,000, and 45% above that. On an $80,000 salary you pay $14,520 in income tax plus $1,600 Medicare levy — $16,120 in total, leaving take-home pay of $63,880.
How much tax do I pay on $60,000?
On a $60,000 salary you pay $8,420 in income tax for FY2026-27 after the Low Income Tax Offset, plus $1,200 Medicare levy — $9,620 in total, an effective rate of 16.0%. Take-home pay is $50,380 a year, about $969 a week.
How much tax do I pay on $80,000?
On $80,000 you pay $14,520 in income tax for FY2026-27 — down from $14,788 in 2025-26 thanks to the new 15% rate. Adding the $1,600 Medicare levy brings total tax to $16,120, for take-home pay of $63,880 a year ($1,228 a week).
How much tax do I pay on $100,000?
On $100,000 you pay $20,520 in income tax for FY2026-27, plus $2,000 Medicare levy — $22,520 in total. Take-home pay is $77,480 a year, about $1,490 a week, and every extra dollar you earn is taxed at your 30% marginal rate.
What are the 2026-27 tax brackets in Australia?
The ATO resident brackets for FY2026-27 are: $18,200 tax-free, then 15% to $45,000, 30% to $135,000, 37% to $190,000, and 45% above $190,000. The only change from 2025-26 is the second rate falling from 16% to 15% on 1 July 2026 — a cut worth up to $268 a year.
What is the tax-free threshold in Australia?
The first $18,200 you earn each year is tax-free if you claim the threshold with your main employer. Because the Low Income Tax Offset refunds up to $700 of tax, you effectively pay no income tax until your income passes $22,867 in FY2026-27. Claim the threshold with one employer only — claiming it twice creates a tax debt.
What is the difference between marginal and effective tax rates?
Your marginal rate is the tax on your next dollar of income; your effective rate is total tax divided by total income. On $100,000 the marginal rate is 30%, but the effective rate is only 22.5% including the Medicare levy, because the first $18,200 is tax-free and income up to $45,000 is taxed at just 15%.
How much tax will I get back?
Your refund equals the PAYG tax your employer withheld minus your actual annual liability. Refunds are common when you worked only part of the year, had tax withheld at no-threshold second-job rates, or claim work-related deductions that reduce your taxable income. Calculate your FY2026-27 liability here, then compare it against the tax-withheld total on your income statement.
How is income tax collected from my pay?
Through PAYG (Pay As You Go) withholding: your employer deducts an estimate of tax from every pay using the ATO withholding schedules and sends it to the ATO. When you lodge your return — by 31 October, or later through a registered tax agent — the ATO compares the total withheld with your actual liability and refunds or bills the difference.
Why does my payslip show more tax than this calculator?
This calculator shows your annual tax liability. Your employer withholds using ATO schedules that annualise each individual pay and cannot see your deductions, offsets, or income changes across the year, so the withheld total usually lands slightly above the true liability. Anything over-withheld comes back as a refund after you lodge your return.
How is income tax calculated if I have two jobs?
You claim the $18,200 tax-free threshold on one job only. Your second employer withholds with no tax-free threshold, starting at roughly 15% from the first dollar under the FY2026-27 schedules. At tax time the ATO combines all income and applies the normal brackets to the total — you are never taxed twice, but claiming the threshold on both jobs will leave you with a debt.
Do I pay the Medicare levy on top of income tax?
Most taxpayers pay a Medicare levy of 2% of taxable income on top of income tax — $1,600 on $80,000. Low-income earners pay a reduced levy or none at all, and a Medicare Levy Surcharge of 1–1.5% applies above $105,000 if you do not hold private hospital cover.
Is superannuation included in taxable income?
No. The 12% superannuation guarantee your employer pays goes to your fund on top of your salary and is not part of your assessable income. Concessional contributions, including salary sacrifice, are taxed at 15% inside the fund instead of at your marginal rate — which is why salary sacrificing can cut your income tax.
What happens if I don't lodge a tax return?
The ATO can charge failure-to-lodge penalties, hold back any refund you are owed, and eventually issue a default assessment based on the income it already knows about. Lodge by 31 October, or register with a tax agent before that date for an extended deadline. If you earned under the tax-free threshold you may only need to submit a non-lodgment advice.
Can I still calculate my 2025-26 tax?
Yes. Tax returns lodged between July and October 2026 cover FY2025-26, when the second bracket rate was 16% — so income tax on $80,000 was $14,788 rather than $14,520. The brackets were otherwise identical. Use our tax return calculator to estimate your 2025-26 refund before you lodge.
Australian residents pay income tax on a progressive scale in FY2026-27: 0% up to $18,200, 15% from $18,201 to $45,000, 30% to $135,000, 37% to $190,000, and 45% above that. On an $80,000 salary you pay $14,520 in income tax plus $1,600 Medicare levy — $16,120 in total, leaving take-home pay of $63,880.
On a $60,000 salary you pay $8,420 in income tax for FY2026-27 after the Low Income Tax Offset, plus $1,200 Medicare levy — $9,620 in total, an effective rate of 16.0%. Take-home pay is $50,380 a year, about $969 a week.
On $80,000 you pay $14,520 in income tax for FY2026-27 — down from $14,788 in 2025-26 thanks to the new 15% rate. Adding the $1,600 Medicare levy brings total tax to $16,120, for take-home pay of $63,880 a year ($1,228 a week).
On $100,000 you pay $20,520 in income tax for FY2026-27, plus $2,000 Medicare levy — $22,520 in total. Take-home pay is $77,480 a year, about $1,490 a week, and every extra dollar you earn is taxed at your 30% marginal rate.
The ATO resident brackets for FY2026-27 are: $18,200 tax-free, then 15% to $45,000, 30% to $135,000, 37% to $190,000, and 45% above $190,000. The only change from 2025-26 is the second rate falling from 16% to 15% on 1 July 2026 — a cut worth up to $268 a year.
The first $18,200 you earn each year is tax-free if you claim the threshold with your main employer. Because the Low Income Tax Offset refunds up to $700 of tax, you effectively pay no income tax until your income passes $22,867 in FY2026-27. Claim the threshold with one employer only — claiming it twice creates a tax debt.
Your marginal rate is the tax on your next dollar of income; your effective rate is total tax divided by total income. On $100,000 the marginal rate is 30%, but the effective rate is only 22.5% including the Medicare levy, because the first $18,200 is tax-free and income up to $45,000 is taxed at just 15%.
Your refund equals the PAYG tax your employer withheld minus your actual annual liability. Refunds are common when you worked only part of the year, had tax withheld at no-threshold second-job rates, or claim work-related deductions that reduce your taxable income. Calculate your FY2026-27 liability here, then compare it against the tax-withheld total on your income statement.
Through PAYG (Pay As You Go) withholding: your employer deducts an estimate of tax from every pay using the ATO withholding schedules and sends it to the ATO. When you lodge your return — by 31 October, or later through a registered tax agent — the ATO compares the total withheld with your actual liability and refunds or bills the difference.
This calculator shows your annual tax liability. Your employer withholds using ATO schedules that annualise each individual pay and cannot see your deductions, offsets, or income changes across the year, so the withheld total usually lands slightly above the true liability. Anything over-withheld comes back as a refund after you lodge your return.
You claim the $18,200 tax-free threshold on one job only. Your second employer withholds with no tax-free threshold, starting at roughly 15% from the first dollar under the FY2026-27 schedules. At tax time the ATO combines all income and applies the normal brackets to the total — you are never taxed twice, but claiming the threshold on both jobs will leave you with a debt.
Most taxpayers pay a Medicare levy of 2% of taxable income on top of income tax — $1,600 on $80,000. Low-income earners pay a reduced levy or none at all, and a Medicare Levy Surcharge of 1–1.5% applies above $105,000 if you do not hold private hospital cover.
No. The 12% superannuation guarantee your employer pays goes to your fund on top of your salary and is not part of your assessable income. Concessional contributions, including salary sacrifice, are taxed at 15% inside the fund instead of at your marginal rate — which is why salary sacrificing can cut your income tax.
The ATO can charge failure-to-lodge penalties, hold back any refund you are owed, and eventually issue a default assessment based on the income it already knows about. Lodge by 31 October, or register with a tax agent before that date for an extended deadline. If you earned under the tax-free threshold you may only need to submit a non-lodgment advice.
Yes. Tax returns lodged between July and October 2026 cover FY2025-26, when the second bracket rate was 16% — so income tax on $80,000 was $14,788 rather than $14,520. The brackets were otherwise identical. Use our tax return calculator to estimate your 2025-26 refund before you lodge.
Related Calculators
Calculate specific components of your tax and pay with these tools:
Tax Return Calculator
Estimate your 2025-26 refund before you lodge this tax season
Take-Home Pay Calculator
Net pay after income tax, Medicare levy, HECS and salary sacrifice
HECS-HELP Calculator
Repayments under the marginal system from $69,528
Salary Sacrifice Calculator
Model pre-tax super contributions and the income tax they save
Superannuation Calculator
Your employer's 12% SG contribution on top of salary
Gross Pay Calculator
Reverse-engineer a net pay target back to the required gross salary
See Your Full Pay Breakdown
Get the complete picture with income tax, Medicare, HECS, and super — all in one calculation.
Calculate Your Take-Home Pay →Sources & References
- 1Individual income tax rates— Australian Taxation Office
- 2Tax rates – foreign residents— Australian Taxation Office
- 3Tax rates – working holiday makers— Australian Taxation Office
- 4Low Income Tax Offset— Australian Taxation Office
- 5Study and training support loans rates and thresholds— Australian Taxation Office
- 6PAYG withholding— Australian Taxation Office
Last verified: 9 October 2026. Our content is based on the latest information from official Australian government sources.
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People reading this page usually work these out too.