Tax Return Calculator 2026: Estimate Your 2025-26 Refund
An estimated tax return is the difference between the PAYG tax withheld from 1 July 2025 to 30 June 2026 and the tax owed on the 2025-26 scale: $18,200 tax-free, then 16% to $45,000 and 30% to $135,000, plus the 2% Medicare levy. More withheld than owed is a refund; less is a bill. The return is due 31 October 2026 if self-lodged through myTax, or 15 May 2027 through most tax agents. Switch to 2026-27 to plan next year’s return.
Estimation Only
This tool gives a rough estimate of your refund or amount owing. It is not tax advice. Your actual result depends on your complete return, including all income, deductions and offsets. Lodge through myGov / myTax for the real figure.
Estimate Your Tax Refund
Tax Reconciliation (2025-26)
Quick Stats
Uses the 2025-26 rates (second bracket 16%), the 2025-26 Medicare levy surcharge tiers and study loan thresholds. Assumes a single Australian resident for the full year with no dependants.
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How Is Your Tax Return Calculated?
Your tax return compares the tax withheld from your pay with the tax you actually owe for the income year. The return you lodge in 2026 covers the 2025-26 year, 1 July 2025 to 30 June 2026, and is assessed on the 2025-26 rates.
During the year, your employer withholds tax from each pay under the PAYG withholding system. Withholding is worked out pay by pay and does not know about your deductions, other jobs or investment income. When you lodge, the ATO works out your tax on the whole year’s figures.
Over-Withheld = Refund
If more tax was withheld than you owe (common when you claim deductions), you get the difference back as a refund.
Under-Withheld = Bill
If not enough was withheld (for example, two jobs both claiming the tax-free threshold), you owe the ATO the shortfall.
The calculation follows 4 steps:
- Add up assessable income — salary, wages, interest, dividends and other income received in 2025-26
- Subtract allowable deductions — work-related expenses, self-education, donations and tax agent fees reduce your taxable income
- Apply the tax rates and offsets — tax is worked out on taxable income at marginal rates, then the Low Income Tax Offset (up to $700) is taken off and the 2% Medicare levy is added
- Compare with tax withheld — the difference between your total tax and the tax already withheld is your refund or amount owing
For deadlines, refund times and what changed this year, see the 2026 tax return guide. For tax on the pay you are earning now, use the Income Tax Calculator.
What Deductions Increase Your Tax Refund?
Deductions reduce your taxable income, which lowers your tax and increases your refund. In 2025-26, each $1 of deductions saves between 16c and 45c of income tax depending on your marginal rate, plus up to 2c of Medicare levy.
| Deduction Category | What You Claim | Example Claim | Tax Saved (32%) |
|---|---|---|---|
| Work from home | Fixed rate of 70c per hour worked from home in 2025-26, covering energy, internet, phone and stationery. You need a record of your actual hours. | $1,000 – $3,000 | $320 – $960 |
| Car and travel | Work trips (not home to work) at 88c per km for 2025-26, up to 5,000 km, or the logbook method | $500 – $4,000 | $160 – $1,280 |
| Uniform and clothing | Buying and cleaning occupation-specific clothing and protective gear | $150 – $500 | $48 – $160 |
| Self-education | Courses, textbooks and conferences directly related to your current job | $200 – $2,000 | $64 – $640 |
| Tools and equipment | Items costing $300 or less claimed in full; dearer items depreciated over their effective life | $100 – $1,000 | $32 – $320 |
| Union fees and subscriptions | Union dues, professional association memberships, trade journals | $200 – $800 | $64 – $256 |
| Donations | Gifts of $2 or more to deductible gift recipients (DGRs) | $50 – $500 | $16 – $160 |
Tax saved assumes taxable income between $45,001 and $135,000 (30% rate plus the Medicare levy). You must have spent the money yourself, it must relate directly to earning your income, and you need records. For 2026-27 the car rate rises to 91c per km.
Salary sacrifice reduces your taxable income before tax is withheld. Use our Salary Sacrifice Calculator to compare take-home pay with and without it.
What Tax Rates Apply to Your 2025-26 Return?
The 2025-26 return uses a 16% second bracket. That rate fell to 15% from 1 July 2026, so a calculator set to 2026-27 shows up to $268 less tax than your 2026 return really works out.
| Taxable Income | 2025-26 rate | 2026-27 rate | Tax saved by $1,000 of deductions (2025-26) |
|---|---|---|---|
| $0 – $18,200 | 0% | 0% | $0 |
| $18,201 – $45,000 | 16% | 15% | $160 |
| $45,001 – $135,000 | 30% | 30% | $300 |
| $135,001 – $190,000 | 37% | 37% | $370 |
| $190,001+ | 45% | 45% | $450 |
Worked example: $85,000 of income, $2,500 of deductions and $20,000 withheld gives an estimated 2025-26 refund of $2,812. The same inputs at 2026-27 rates show $3,080. Without private hospital cover, singles earning over $101,000 also pay the Medicare levy surcharge. Use our Take-Home Pay Calculator for your after-tax pay this year.
Who Uses This Tax Return Calculator?
Employees, contractors and retirees use it to estimate their refund before lodging through myTax or a tax agent.
- 1PAYG employees checking whether the right amount of tax was withheld, especially after a new job, a pay rise or overtime
- 2People with two or more jobs reconciling tax withheld by each employer, since each withholds as if it were your only job
- 3Contractors and sole traders estimating their year-end tax alongside our Contractor Pay Calculator
- 4Study loan holders checking how much their compulsory repayment takes off the refund — for 2025-26, repayments start above $67,000 and apply only to income above it
- 5Anyone planning ahead for 2026-27, comparing deductions, super contributions and salary sacrifice before 30 June 2027
What Is the Difference Between a Tax Return and a Tax Refund?
A "tax return" is the form you lodge with the ATO reporting your income, deductions and offsets. A "tax refund" is the money the ATO pays back when more tax was withheld than you owe.
| Feature | Tax Return | Tax Refund |
|---|---|---|
| Definition | The yearly form lodged with the ATO declaring income and deductions | The money returned when tax withheld is more than the tax you owe |
| Who | Most people who earned income or had tax withheld during the year | Issued by the ATO after it assesses your return |
| Timing (2025-26) | Due 31 October 2026 (self-lodged) or usually 15 May 2027 (tax agent) | Most myTax refunds within 2 weeks; paper within 50 business days |
| Outcome | Either a refund or an amount owing | Paid into your nominated bank account |
| Guaranteed? | Required for most income earners | No — you get a bill if too little was withheld |
Lodging a return doesn’t always produce a refund. People with more than one job, investment income with no tax withheld, or a study loan are the most likely to get a bill.
Tax Return Deadlines for 2025-26
The 2025-26 return covers income from 1 July 2025 to 30 June 2026. A late return can attract a failure-to-lodge penalty of $364 (one penalty unit from 1 July 2026) for every 28 days or part of that it is overdue, up to $1,820 for an individual. See the late tax return penalty calculator to work out yours.
- late JulyThe ATO has pre-filled most employer, bank, health fund and government information. Wait until your income statement is "tax ready".
- 31 Oct 2026Deadline if you lodge yourself through myTax, and the last day to get on a tax agent’s client list. It falls on a weekend this year, so you can lodge on 2 November 2026.
- 31 Mar 2027Agent clients whose latest return had a tax liability of $20,000 or more
- 15 May 2027Most other clients of a registered tax agent. Your agent confirms the date that applies to you.
Every other date in the year, including BAS and super, is on the tax calendar.
What Are the Most Common Tax Return Mistakes?
The ATO matches your return against data from employers, banks, share registries and government agencies. Avoiding these 5 mistakes protects your refund.
- Leaving out income — bank interest, dividends, government payments and second jobs are all reported to the ATO. Missing them triggers an amendment.
- Claiming private expenses — travel between home and work, personal phone use and everyday clothing are not deductible.
- Claiming the tax-free threshold twice — only one employer should apply the $18,200 tax-free threshold. Claiming it from two causes under-withholding and a bill.
- Forgetting the Medicare levy surcharge — for 2025-26, singles earning above $101,000 without private hospital cover pay 1% to 1.5% extra. Family thresholds are higher.
- Lodging too early — lodging before your income statement is "tax ready" risks missing pre-fill data. The ATO has most of it by late July.
Study loan repayments are based on "repayment income", which can be higher than taxable income. Use our HECS-HELP Calculator to check your compulsory repayment.
Related Australian Tax Calculators
Estimating your tax return is one part of understanding your pay. These tools cover this year’s pay, super, salary sacrifice and study loans.
Tax Return 2026 Guide
Deadlines, refund times and what changed for the 2025-26 return.
Income Tax Calculator
Tax brackets, LITO and marginal rates on the pay you earn this year.
Take-Home Pay Calculator
Net pay after tax, Medicare levy, super and study loan repayments.
Superannuation Calculator
Employer super at 12% and your projected balance.
Salary Sacrifice Calculator
Compare pre-tax and post-tax salary packaging.
HECS-HELP Calculator
Your compulsory study loan repayment at current thresholds.
How this calculator works▼
This estimator uses the following approach:
- 2025-26 (default): the 2025-26 resident tax rates, LITO, the 2025-26 Medicare levy thresholds, Medicare levy surcharge tiers and study loan bands. These are the rates your 2026 return is assessed on.
- 2026-27: the current-year rates used across this site. Medicare levy low-income thresholds for 2026-27 are not yet published, so the 2025-26 ones are used.
- Compares the result with your PAYG tax withheld to estimate your refund or amount owing.
- Uses taxable income for the surcharge and study loan tests. Real returns also add items such as reportable fringe benefits and super contributions.
- Does not include other offsets, foreign income, capital gains, rental income, franking credits or the private health insurance rebate adjustment.
- This is an estimate only — lodge through myTax for your actual result.
Frequently Asked Questions
Your refund is the tax withheld from your pay minus the tax you actually owe for the year. For example, $85,000 of income, $2,500 of deductions and $20,000 withheld gives an estimated 2025-26 refund of $2,812. The same figures at 2026-27 rates would show $3,080, which is why the calculator asks which year you are lodging for.
It is the tax withheld from your pay for the year minus the tax you owe on your taxable income. In the example above, $20,000 withheld against $85,000 of income and $2,500 of deductions gives about $2,812 back. Enter your own figures above; more deductions raise the refund.
Choose 2025-26 for the return you lodge now. It covers 1 July 2025 to 30 June 2026 and is due 31 October 2026 if you lodge it yourself, or usually 15 May 2027 through a registered tax agent. Choose 2026-27 only to plan next year's return on the income you are earning now. That year's second tax rate is 15% instead of 16%.
The ATO says most returns lodged online through myTax are processed in 12 business days and most refunds are issued within 2 weeks. Paper returns take longer: most refunds are issued within 50 business days. It can take longer if the ATO needs to check something, or if your refund is used to pay another debt.
If less tax was withheld than you owe, you get a bill with your notice of assessment. Common causes are two or more jobs, investment income with no tax withheld, or claiming the tax-free threshold from more than one employer. If you owe $200,000 or less, you may be able to set up a payment plan in ATO online services. The general interest charge keeps building until the debt is paid.
Yes. Your compulsory study loan repayment is added to your tax bill, so it reduces your refund dollar for dollar. For 2025-26, repayments start above $67,000 and are worked out only on income above that amount. At $85,000 the repayment is $2,700. For 2026-27 the threshold rises to $69,528.
If you are single, earn more than $101,000 in 2025-26 and don't hold private hospital cover, you pay the Medicare levy surcharge of 1% to 1.5%, depending on your income. The singles threshold is $105,000 for 2026-27. Family thresholds are higher. Having the right hospital cover for the whole year means you don't pay it.
Each employer works out withholding as if its job were your only income. Only one employer should apply the $18,200 tax-free threshold. If you claim it from both, too little tax is withheld and you get a bill at tax time. Claim the threshold from your main job only and tick "no" on the tax file number declaration for the others.
Wait until your income statement shows as "tax ready". The ATO says it has pre-filled most employer, bank, health fund and government information by late July. If you lodge before then, you risk missing income and having to amend your return. The 2025-26 self-lodgment deadline is 31 October 2026. It falls on a Saturday this year, so the ATO accepts lodgment on the next business day, 2 November 2026.
Sources & References
- 1Tax rates – Australian residents— Australian Taxation Office
- 2Lodge your tax return online with myTax— Australian Taxation Office
- 3Registered agent lodgment program – individuals and trusts— Australian Taxation Office
- 4Medicare levy surcharge income, thresholds and rates— Australian Taxation Office
- 5Study and training loans – what's new— Australian Taxation Office
- 6Working from home – fixed rate method— Australian Taxation Office
- 7Cents per kilometre method— Australian Taxation Office
- 8Failure to lodge on time penalty— Australian Taxation Office
- 9Penalty units— Australian Taxation Office
Last verified: 9 October 2026. Our content is based on the latest information from official Australian government sources.
What to check next
People reading this page usually work these out too.