Australia Income tax estimator

See your annual tax bill, effective rate, and marginal rate — using current official brackets.

By Mitch Duncan Last reviewed Methodology

Your income

Tax year: 2026/27 · Source: ATO (ato.gov.au)

Take-home
$63,880.00
Total tax & deductions
$16,120.00
Effective rate
20.2%
Marginal rate
30%
Breakdown
Gross income$80,000.00
Income tax−$14,520.00
Medicare levy (2%)−$1,600.00
Net (annual)$63,880.00
  • · Australian resident rates (tax-free threshold applied).
  • · HELP repayment uses the marginal system: 15% of income over $69,528 plus 17% over $129,717, capped at 10% of income.
  • · Medicare levy surcharge (for high earners without private health) not included.
  • · Does not include offsets (LITO etc.) or super guarantee.
Next step

Understanding your inputs

Gross annual salary
Your total yearly income before tax — the figure the brackets are applied to.

Understanding your results

Take-home
Your estimated annual pay after income tax and statutory deductions.
Total tax & deductions
Everything withheld — income tax plus the relevant national contributions for your country.
Effective rate
Tax as a share of your whole income — usually well below your top bracket.
Marginal rate
The rate charged on your next dollar earned — what a raise or bonus is taxed at.
Want the full picture? Income Tax Rates 2025: US, UK, Canada & Australia →

How Australian income tax is calculated

Australian residents pay progressive income tax on the financial year running 1 July to 30 June. The first $18,200 is tax-free (the tax-free threshold), and a 2% Medicare levy is charged on top of income tax for most residents.

2026–27 resident rates

Worked example ($90,000 salary)

Super and HECS-HELP

Your employer pays the Superannuation Guarantee (12% from 1 July 2025) on top of your salary — it doesn't reduce take-home but isn't cash in hand either. If you have a HECS-HELP study debt, compulsory repayments start once income passes $69,528 (2026–27): you repay 15c per dollar over the threshold, 17c per dollar over $129,717, capped at 10% of income.

Common mistakes

What this calculator doesn't cover

For a full return use the ATO's tools or a registered tax agent. This calculator is for quick estimation.

Related calculators

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Key terms

Frequently asked questions

How is income tax calculated?
Income tax is calculated by applying progressive brackets to taxable income — each slice of income is taxed at its bracket's rate, not the top rate applied to the whole amount. Your taxable income is gross income minus any allowed deductions or personal allowances. The calculator above handles the bracket-by-bracket maths for each market.
What's the difference between marginal and effective tax rate?
Your marginal rate is the rate paid on the next dollar earned — the top bracket your income reaches. Your effective rate is total tax divided by total income, which is always lower because earlier income is taxed at lower bracket rates. A 22% marginal rate often produces a 12–15% effective rate.
What deductions can I claim?
Standard deductions or personal allowances are subtracted automatically by region: US standard deduction varies by filing status; UK personal allowance is fixed at £12,570; Canada has the basic personal amount; Australia has the tax-free threshold. Itemising (US) or claiming additional reliefs (UK, CA, AU) can lower tax further depending on circumstances.
Are tax brackets indexed to inflation?
In the US, federal brackets are inflation-indexed annually. The UK has frozen most thresholds through several recent budgets, causing 'fiscal drag' as wage growth pushes earners into higher bands. Canada indexes brackets annually. Australia adjusts thresholds occasionally but not on a fixed schedule. The calculator above uses the latest published brackets for each market.
Why does my paycheck show different tax than my annual estimate?
Paycheck withholding is an estimate based on your W-4 (US), tax code (UK), or TD1 (Canada) — it doesn't always match your actual annual liability. Differences come from variable income, multiple jobs, claimed allowances, or one-time bonuses. The annual reconciliation at tax time settles up; this calculator estimates the year-end figure.

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