Rates verified: 4 September 2026 · Sources: ATO
Australia · Resident tax rates
Estimate income tax, Medicare levy and take-home pay against current ATO resident tax brackets, accurate to the cent.
Breakdown: Annual
Excludes tax offsets (e.g. LITO), HELP/HECS repayments and the Medicare levy surcharge. Medicare levy reduction thresholds shown use confirmed 2025–26 ATO figures; see the notes below.
Australia uses a marginal (progressive) tax system: each bracket only taxes the portion of income that falls within it, not your whole income. For example, on $100,000 taxable income in 2026–27: the first $18,200 is tax-free, the next $26,800 (to $45,000) is taxed at 15%, and the remaining $55,000 is taxed at 30%. That works out to $4,020 + ($55,000 × 30%) = $20,520 income tax, before the Medicare levy, not $30,000, which is what a flat 30% rate on the whole amount would (incorrectly) suggest.
The 1 July 2026 tax cut reduced the second bracket from 16% to 15%; a further cut to 14% is legislated from 1 July 2027. Thresholds are unchanged between the two years shown below.
| Taxable income | 2025–26 rate | 2026–27 rate |
|---|---|---|
| $0 – $18,200 | Nil | Nil |
| $18,201 – $45,000 | 16c per $1 over $18,200 | 15c per $1 over $18,200 |
| $45,001 – $135,000 | $4,288 + 30c over $45,000 | $4,020 + 30c over $45,000 |
| $135,001 – $190,000 | $31,288 + 37c over $135,000 | $31,020 + 37c over $135,000 |
| $190,001+ | $51,638 + 45c over $190,000 | $51,370 + 45c over $190,000 |
The Medicare levy is a separate 2% levy on taxable income, on top of income tax. Low-income earners get relief: no levy at all below the lower threshold, a reduced ("shade-in") levy between the two thresholds, and the full 2% above the upper threshold. For 2025–26, the confirmed ATO thresholds for a single taxpayer (not eligible for SAPTO) are a lower threshold of $28,011 and an upper threshold of $35,013. This calculator applies that same shade-in formula to both financial years shown; the 2026–27 thresholds are indexed annually and hadn't been published by the ATO at time of writing, so treat the 2026–27 Medicare levy figure as indicative if your income sits near the threshold, and confirm on ato.gov.au.
To stay accurate and transparent, this tool deliberately excludes a few things that affect your final tax bill: the Low Income Tax Offset (LITO) and other offsets, HELP/HECS or other study and training loan repayments, the Medicare levy surcharge (which applies to higher earners without private hospital cover), and the private health insurance rebate. If any of these apply to you, your actual refund or bill will differ from the figure above. Check the Medicare Levy Surcharge & PHI Rebate Calculator for those two specifically. Use this calculator for a quick estimate of tax and Medicare levy on your income, not as a substitute for a tax return.
Working out overtime or casual loading first? Use the Pay & Overtime Calculator to get your gross figure, then bring it here. Salary packaging a novated lease? Check the reportable fringe benefit impact with the Novated Lease & Car FBT Calculator. If your income is approaching $250,000 once concessional super contributions are added in, the extra 15% Division 293 tax may also apply — see the Division 293 Calculator.
LITO reduces the tax payable for lower-income earners, on top of the tax-free threshold. The maximum offset is $700, for taxable income of $37,500 or less. It tapers by 5 cents for every dollar between $37,501 and $45,000 (down to $325 at $45,000), then by 1.5 cents for every dollar between $45,001 and $66,667, where it cuts out completely.
LITO isn't built into the figures above: it's applied when you lodge your return, not through your regular pay-as-you-go withholding, so this calculator's "Income tax" line reflects your gross tax before LITO is applied.
For $60,000 taxable income in 2026-27: the first $18,200 is tax-free, the next $26,800 (to $45,000) is taxed at 15% ($4,020), and the remaining $15,000 is taxed at 30% ($4,500), for $8,520 income tax before the Medicare levy. Add the full 2% Medicare levy ($1,200, since $60,000 sits above the 2025-26 upper threshold of $35,013) for $9,720 total tax, leaving $50,280 take-home.
Under the 2025-26 brackets, the same $60,000 income paid $9,988 total tax, $268 more. That's the dollar value of the 1 July 2026 rate cut at this income level, before LITO.