Australia Income tax estimator
See your annual tax bill, effective rate, and marginal rate — using current official brackets.
Your income
Tax year: 2026/27 · Source: ATO (ato.gov.au)
| 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.
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.
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
- $0–$18,200: nil
- $18,201–$45,000: 15% (cut from 16% on 1 July 2026; falls to 14% from July 2027)
- $45,001–$135,000: 30%
- $135,001–$190,000: 37%
- $190,001+: 45%
Worked example ($90,000 salary)
- $18,201–$45,000: $26,800 at 15% = $4,020
- $45,001–$90,000: $45,000 at 30% = $13,500
- Income tax = $17,520
- Medicare levy 2% × $90,000 = $1,800
- Total ≈ $19,320 (effective rate 21.5%, marginal rate 32% incl. Medicare)
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
- Forgetting the Medicare levy. It's 2% on top of income tax, with a surcharge for high earners without private hospital cover.
- Confusing the financial year. It ends 30 June, not 31 December.
- Treating super as take-home. It's locked away until preservation age.
- Missing the HECS-HELP repayment. It kicks in automatically above the threshold.
What this calculator doesn't cover
- Medicare Levy Surcharge for high earners without private cover
- Private health insurance rebate
- Salary-sacrifice and concessional super contributions
- Non-resident and working-holiday-maker rates (no tax-free threshold)
For a full return use the ATO's tools or a registered tax agent. This calculator is for quick estimation.
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Key terms
Frequently asked questions
How is income tax calculated?
What's the difference between marginal and effective tax rate?
What deductions can I claim?
Are tax brackets indexed to inflation?
Why does my paycheck show different tax than my annual estimate?
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