Tax on $25,000 in Australia
$320 income tax plus $0 Medicare levy on a $25,000 salary in 2026-27: $320 in total (1.3% of salary), leaving $24,680 take-home.
$25,000 sits $6,800 into the 15% bracket, $20,000 short of the 30% rate that starts above $45,000.
How Much Tax Do You Pay on $25,000?
| Tax Bracket | Income in Bracket | Tax Rate | Tax Paid |
|---|---|---|---|
| $0 – $18,200 | $18,200 | 0.0% | $0 |
| $18,200 – $45,000 | $6,800 | 15.0% | $1,020 |
| Minus Low Income Tax Offset (LITO) | −$700 | ||
| Total Income Tax | $320 | ||
Income tax by year: $592 in 2023-24, $388 in 2025-26, $320 now, $2 in 2027-28 (after the $250 Working Australians Tax Offset). Tax bracket history.
What Is the Take-Home Pay Breakdown at $25,000?
| Component | Annual | Monthly | Fortnightly | Weekly |
|---|---|---|---|---|
| Gross Salary | $25,000 | $2,083 | $962 | $481 |
| Income Tax | −$320 | −$27 | −$12 | −$6 |
| Medicare Levy | $0 | $0 | $0 | $0 |
| Take-Home Pay | $24,680 | $2,057 | $949 | $475 |
Employer super: $3,000 (12%). Each $1,000 sacrificed cuts tax and Medicare here by $150 and adds $850 to super after contributions tax, so it does not come out ahead. Up to $37,000 the low income super tax offset refunds 15% of concessional contributions, at most $500 a year (2026-27); employer super alone uses $450 of it. Salary sacrifice calculator.
Low Income Tax Offset on $25,000
The full $700 offset (2026-27) cuts the bracket tax on $25,000 from $1,020 to $320. It stays at $700 up to $37,500, then shrinks by 5c per dollar. How the Low Income Tax Offset works.
Medicare Levy on $25,000: the Low-Income Reduction
No Medicare levy on $25,000: singles pay none up to $28,011 (2025-26 threshold, the latest the ATO has published). Above it the levy is 10c per dollar over $28,011 until it reaches 2% of income at $35,013; families have a $47,238 threshold plus $4,338 per dependent child. Medicare levy guide.
Tax Thresholds Near $25,000
2 thresholds between $20,000 and $30,000 (1 passed, 1 ahead):
| Threshold | Above | What changes | Distance |
|---|---|---|---|
| LITO nil-tax limit2026-27 | $22,866 | The $700 Low Income Tax Offset no longer covers the whole 15% tax, so income tax becomes payable. | Passed: $2,134 below $25,000 |
| Medicare levy low-income threshold2025-26 | $28,011 | The Medicare levy starts, shaded in at 10c per dollar above $28,011. | $3,011 above $25,000 |
Next further up: the full Medicare levy threshold at $35,013 (2025-26). The last one passed was the tax-free threshold at $18,200.
The Medicare levy low-income thresholds are 2025-26 figures, the latest the ATO has published.
Tax on the Next $1,000 Above $25,000
A rise to $26,000 adds $150 of income tax and $0 of Medicare levy, so you keep $850 of the $1,000: 15% goes, below the headline 17% because income is still under the Medicare levy threshold.
How Does $25,000 Compare to Other Salary Levels?
The steps are uneven because they cross the tax-free threshold ($18,200), the LITO nil-tax limit ($22,866) and the Medicare levy low-income threshold ($28,011). Any other figure: income tax calculator.
Where $25,000 Sits Among Australian Earners
$25,000 ($481 a week) is about the 11th percentile of all employees, in the lowest-paid quarter (our estimate between the published 10th and 25th, ABS Employee Earnings, August 2025). A full-time adult on the National Minimum Wage earns $52,255 a year from 1 July 2026, so $25,000 is usually part-time or casual pay: at the minimum $26.44 an hour it is about 18.2 hours a week. Average salary in Australia.
Pay Close to $25,000
More published pay from $22,500 to $27,499:
- Junior minimum wage, full-time (from 1 July 2026): Age 16 $24,717
Frequently Asked Questions
How this calculator works▼
ATO resident rates for 2026-27; headline figures leave out the surcharge and HECS-HELP. Our methodology.
Sources & References
- 1
- 2Medicare levy— ATO
- 3
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- 5
- 6
- 7National Minimum Wage Order 2026 (PR799279)— Fair Work Commission
Last verified: 9 October 2026. Our content is based on the latest information from official Australian government sources.
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