About this calculator
Residents pay no tax on the first $18,200, then 16% to $45,000, 30% to $135,000, 37% to $190,000 and 45% above. Two adjustments matter before you read the total: the Low Income Tax Offset (up to $700, fully phased out by $66,667) cuts the bill for lower earners, and the 2% Medicare levy phases in at 10% of income above $28,011 for singles, reaching the full 2% at $35,013. From 1 July 2026 the 16% rate falls to 15% under law already passed, and to 14% from 1 July 2027.
Superannuation Guarantee (12% from 1 July 2025) is paid by your employer on top of your salary and is not part of take-home pay, so it does not appear here. The Medicare levy surcharge (1–1.5% without complying hospital cover, from $101,000 for singles in 2025–26) is not modelled — it depends on your surcharge income and cover, and at $100,000 or below it is zero even without cover.
How to use it
- Pick the tax year and enter your monthly salary (annual taxable income is monthly × 12 — see the FAQ on deductions).
- Choose single or family for the Medicare levy thresholds; add dependent children if family.
- Say whether you carry a HECS-HELP, VSL or AASL debt.
- Read the tax, levy, any HECS repayment and the take-home line; the table shows the tax bands your income passes through.
The formula
Worked example for 2025–26, single, $100,000, no HECS: tax is 26,800 × 16% + 55,000 × 30% = $4,288 + $16,500 = $20,788; LITO is $0 above $66,667; Medicare levy is the full 2% × $100,000 = $2,000 (the $35,013 upper threshold is passed); total $22,788, an effective rate of 22.79%, take-home $77,212.
Worked example
A single resident on $8,333.33 a month ($100,000 a year) in 2025–26 with no study debt: income tax $20,788, Medicare levy $2,000, total $22,788 — take-home $77,212 a year, about $6,434 a month. Add a HECS debt and the repayment is 15% × ($100,000 − $67,000) = $4,950, cutting take-home to $72,262.
Sources: ATO — resident tax rates, Medicare levy reduction (singles and families), study loan repayment thresholds and rates; Treasury Laws Amendment (More Cost of Living Relief) Act 2025 (2026–27 and 2027–28 rate cuts). Verified October 2026. Last updated: October 2026.
Frequently asked questions
What about work deductions — is my taxable income really my salary?
For most employees, close but not exact: work-related expenses (tools, home office, vehicle use), donations and other deductions reduce taxable income below gross salary, and salary-sacrificed super or novated leases change it too. This calculator takes the salary you enter as taxable income — if you claim $5,000 of deductions, enter salary minus $5,000 for a sharper result. The band table and levy then follow automatically.
How does the Medicare levy shade-in work?
Below $28,011 (singles, 2025–26) you pay nothing; between $28,011 and $35,013 you pay 10% of the excess over $28,011 — so at $29,000 the levy is just $98.90, not 2% of $29,000. Above $35,013 the full 2% of taxable income applies. Families use higher thresholds ($47,238–$59,047) that rise with each dependent child. Seniors and pensioners (SAPTO) get higher thresholds again ($44,268–$55,335 for singles).
How do HECS repayments work now?
Since 2024–25, repayments are marginal, not a flat percentage of all income: nothing up to $67,000 (2025–26), then 15% of income above $67,000 up to $125,000, then $8,700 plus 17% above $125,000, then 10% of total repayment income above $179,285. Repayment income for a plain employee is essentially taxable income. The 20% one-off reduction applied to balances on 1 June 2025 shrinks what you owe, not the annual repayment, so it does not change this calculation.
What changes in 2026–27 and 2027–28?
Already legislated: the 16% band drops to 15% on 1 July 2026 (so the $45,000 base amount falls from $4,288 to $4,020) and to 14% on 1 July 2027 ($3,752). Other rates and thresholds are unchanged, and the Medicare levy thresholds for 2026–27 are indexed annually — this calculator uses the 2025–26 levy thresholds for the 2026–27 option, a small and conservative approximation until the ATO publishes the indexed figures. Announced-but-unlegislated items (a $250 offset from 2027 and a $1,000 standard work deduction) are deliberately not modelled.
I have private hospital cover — does the surcharge matter?
No: complying hospital cover (excess no more than $750 single / $1,500 family) removes the Medicare levy surcharge entirely. Without it, the surcharge is 1% from $101,000, 1.25% from $118,000 and 1.5% from $158,000 for singles in 2025–26 — applied to your whole surcharge income, not just the excess. If you are over $101,000 without cover, add the surcharge to the total shown here.
What formula does this Australia Income Tax calculator use?
Annual salary = Monthly salary × 12; income tax = band rates on taxable income − LITO; Medicare levy = 0% / 10% shade-in / 2%; HECS = 15% / 17% marginal (10% of total at the top) Worked example for 2025–26, single, $100,000, no HECS: tax is 26,800 × 16% + 55,000 × 30% = $4,288 + $16,500 = $20,788; LITO is $0 above $66,667; Medicare levy is the full 2% × $100,000 = $2,000 (the $35,013 upper threshold is passed); total $22,788, an effective rate of 22.79%, take-home $77,212. The worked example on this page applies the formula step by step with real numbers, so you can verify the result by hand.