Income Tax Calculator Australia (2025/26)
Estimate your Australian income tax with current ATO resident brackets, including the $18,200 tax-free threshold. Free, private, and in Australian dollars.
How income tax works in Australia
Australia taxes residents on a progressive scale administered by the ATO, and the system starts with one of the more generous tax-free thresholds anywhere: the first $18,200 of income attracts no tax at all. Above that, marginal rates step up through the bands to a top rate of 45%. The Stage 3 reforms that took effect in July 2024 reshaped the middle of the scale, cutting rates across the bands where most full-time earners sit, so older rules of thumb about Australian tax are now out of date.
Two quirks trip people up. First, the Australian tax year runs 1 July to 30 June, so "this year’s" rates means the financial year, not the calendar year. Second, the headline income tax is not the whole story: most taxpayers also pay the Medicare Levy of 2% on top, and higher earners without private hospital cover can owe the Medicare Levy Surcharge as well.
This calculator applies the current ATO resident brackets, including the tax-free threshold, to estimate your income tax for the financial year. It models income tax only: the Medicare Levy, the Medicare Levy Surcharge, the Low Income Tax Offset, HELP/HECS repayments, superannuation, and non-resident rates are out of scope.
Australia tax brackets — 2025/26
| Taxable income (AUD) | Marginal rate |
|---|---|
| $0 – $18,200 | 0% |
| $18,200 – $45,000 | 16% |
| $45,000 – $135,000 | 30% |
| $135,000 – $190,000 | 37% |
| Above $190,000 | 45% |
Income tax only — Medicare Levy (2%) is separate. Tax year runs 1 July – 30 June. Stage 3 reforms (effective July 2024) reduced rates across the middle bands.
Worked examples
Salary-only estimates under the 2025/26 brackets, computed with the same formula as the calculator below (rebates and credits applied; no other income or deductions).
| Annual salary | Estimated tax | Effective rate | Take-home |
|---|---|---|---|
| $65,000 | $10,288 | 1582.8% | $54,712 |
| $95,000 | $19,288 | 2030.3% | $75,712 |
| $180,000 | $47,938 | 2663.2% | $132,062 |
Frequently asked questions
- How much can I earn in Australia before paying income tax?
- Residents pay no income tax on the first $18,200 of taxable income — the tax-free threshold — under the 2025/26 resident rates. Above that, marginal rates apply only to the portion of income inside each band, so crossing a threshold never reduces your take-home pay. The Low Income Tax Offset can extend the effective tax-free zone further, but this calculator does not model it.
- Does this calculator include the Medicare Levy?
- No. The Medicare Levy is a separate 2% charge on taxable income for most taxpayers, with low-income reductions and a surcharge for higher earners without private hospital cover. This calculator estimates income tax under the ATO brackets only, so add roughly 2% of taxable income for a fuller picture of what comes out of your pay.
- What did the Stage 3 tax cuts change?
- From 1 July 2024, the 19% rate fell to 16%, the 32.5% rate fell to 30% and its band was widened, and the 37% and 45% thresholds were lifted. The 2025/26 brackets this calculator uses already reflect those changes — if you are comparing against an older payslip or calculator, the middle bands will look different.
- Does this calculator handle HECS/HELP, super, or non-resident rates?
- No. It estimates annual income tax for a resident individual under the current ATO brackets. HELP/HECS repayments, superannuation contributions and their tax treatment, the Medicare Levy, offsets like LITO, and the separate non-resident rate scale (which has no tax-free threshold) are all out of scope. The ATO’s own tools cover those layers.