Australia Income Tax Calculator

On an $80,000 salary, you pay $14,520 in income tax and $1,600 in Medicare levy — a total of $16,120. Your take-home pay is $63,880 per year ($5,323 per month). Your effective tax rate is 20.2% and your marginal rate is 30%.

On a $100,000 salary in 2026-27, income tax is $20,520 and Medicare levy is $2,000, totalling $22,520 in deductions. Your take-home pay is $77,480 per year (about $6,457 per month). The marginal tax rate at $100,000 is 30%.

On $60,000, your income tax is $8,420 and Medicare levy is $1,200, so total deductions are $9,620. Take-home pay is $50,380 per year ($969 per week). The marginal tax rate is 30%.

The biggest change for 2026-27 is the second tax bracket rate dropped from 19% to 15%, applying to income between $18,201 and $45,000. This gives every resident taxpayer earning above $45,000 an annual saving of up to $804 compared to 2024-25 rates. These are known as the Stage 3 tax cuts (legislated in 2024 and effective from 1 July 2026).

The tax-free threshold is $18,200. If your total taxable income is $18,200 or less, you pay no income tax. You can claim the tax-free threshold by ticking the box on your Tax File Number declaration when starting a new job. If you have multiple jobs, only claim it from your main employer.

The Medicare Levy is 2% of your taxable income, which helps fund Australia's public healthcare system (Medicare). You are exempt if your income is below $28,011. A shade-in applies between $28,011 and $35,014 where you pay a lower effective rate. If you earn over $105,000 and do not have private hospital cover, an additional Medicare Levy Surcharge of 1% to 1.5% applies.

If you have a HECS-HELP student debt, your employer withholds repayments once your repayment income is above the first threshold, which is $69,528 for 2026-27 (ATO table). Since 1 July 2025 the repayment is marginal: nil up to $69,528, then 15c for each $1 between $69,528 and $129,717, then $9,028 plus 17c for each $1 between $129,717 and $186,050. Above $186,050 the ATO charges a flat 10% of your total repayment income. Repayment income is your taxable income plus items such as reportable super contributions and reportable fringe benefits.

The Low Income Tax Offset reduces the tax you owe if you earn under $66,667. The maximum offset is $700 for incomes up to $37,500. It phases down to $325 at $45,000, then reduces to nil at $66,667. The LITO is applied automatically by your employer — you do not need to claim it separately.

From 1 July 2025, the Superannuation Guarantee rate is 12% of your ordinary time earnings. On a $100,000 salary, your employer contributes $12,000 per year into your super fund, on top of your salary. This amount is not deducted from your pay — it is an additional employer contribution.

Australian take-home pay = Gross salary − Income tax − LITO offset (reduces tax) − Medicare levy − Medicare Levy Surcharge (if applicable) − HECS repayment (if applicable). Super is paid by your employer on top of your salary and is not deducted from your take-home pay. All figures in this calculator are based on the ATO's 2026-27 tax tables.