Australia Tax Calculator (2026)
Income tax rates and take-home pay for Australia
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Australia Income Tax Brackets (2025/26)
| Bracket | Income Range | Rate |
|---|---|---|
| Tax-free threshold | A$0 - A$18,200 | 0.0% |
| Lower income earners | A$18,200 - A$45,000 | 16.0% |
| Middle income earners | A$45,000 - A$135,000 | 30.0% |
| Upper middle income earners | A$135,000 - A$190,000 | 37.0% |
| High income earners | A$190,000+ | 45.0% |
Medicare Levy
| Bracket | Income Range | Rate |
|---|---|---|
| Medicare Levy on taxable income | A$0+ | 2.0% |
Key Facts
Tax Year
2025/26
Currency
AUD
Top Rate
45.0%
Brackets
5 brackets
Tax-Free Threshold
A$18,200
Social Contributions
0 items
Assumptions
- · Resident individual model for salary comparison; non-resident rules not included.
- · Medicare levy of 2% is included as a mandatory surcharge on taxable income.
- · Low Income Tax Offset (LITO) is applied as an income-based credit: maximum AUD 700 for taxable income up to AUD 37,500, phasing out to nil at AUD 66,667.
- · No private health insurance surcharge included; assumes eligible health cover or exemption.
- · Superannuation guarantee (12% from 1 July 2025) is employer-paid and excluded from employee take-home calculation.
- · Tax-free threshold of AUD 18,200 is applied as a personal allowance.
- · No voluntary salary sacrifice or personal superannuation contributions modeled.
- · No dependents, no special offsets, and no family tax benefits applied.
- · Simplified model for representative employee comparison; detailed edge cases and prior-year lookbacks excluded.
Frequently asked questions
How much income tax will I pay in Australia?
Australia uses a progressive tax system with five income tax brackets ranging from 0% up to 45% for high earners. If you earn under AUD 18,200, you pay no income tax at all. For example, income between AUD 18,200 and AUD 45,000 is taxed at 16%, while income between AUD 45,000 and AUD 135,000 is taxed at 30%. The exact amount depends on your total income and which brackets you fall into.
What is the Medicare levy and do I have to pay it?
The Medicare levy is a mandatory 2% surcharge on your taxable income that funds Australia's public healthcare system. It applies to all residents and is calculated on top of your regular income tax, so it's an important part of your total tax obligation. There are some exemptions available, such as if you have eligible private health insurance, but most employees pay this levy automatically.
Do I get any tax breaks as a low income earner in Australia?
Yes, Australia offers the Low Income Tax Offset (LITO), which provides a maximum credit of AUD 700 if your taxable income is up to AUD 37,500. This offset gradually reduces as your income increases and phases out completely at AUD 66,667, so it's designed to help lower and middle-income earners keep more of their money.
Is superannuation (retirement savings) deducted from my take-home pay?
No, superannuation is not deducted from your salary. Your employer is required to contribute 12% of your salary directly into your superannuation account as of July 2025, and this contribution is kept separate from your take-home pay. This means you receive your full salary minus only income tax and the Medicare levy, while your retirement savings grow independently.
What's the difference between my gross salary and take-home pay in Australia?
Your take-home pay is your gross salary minus income tax and the Medicare levy (2%). For example, a resident earning AUD 60,000 would pay income tax based on the progressive brackets plus the 2% Medicare levy, but would not have superannuation deducted from their take-home amount since that's an employer contribution. The exact difference depends on which tax bracket you fall into and whether you qualify for offsets like the LITO.
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