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 thresholdA$0 - A$18,2000.0%
Lower income earnersA$18,200 - A$45,00016.0%
Middle income earnersA$45,000 - A$135,00030.0%
Upper middle income earnersA$135,000 - A$190,00037.0%
High income earnersA$190,000+45.0%

Medicare Levy

Bracket Income Range Rate
Medicare Levy on taxable incomeA$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 do I pay in Australia as a resident?

Australia uses a progressive tax system with 5 tax brackets ranging from 0% to 45%. You pay no tax on income up to AUD 18,200 (the tax-free threshold), then 16% on income between AUD 18,200 and AUD 45,000, 30% on income between AUD 45,000 and AUD 135,000, and higher rates for income above that. The highest earners pay 45% on income over AUD 190,000.

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 resident individuals and is added on top of your income tax, so it's an important part of your overall tax bill to consider when calculating take-home pay.

Will I get a tax offset or credit as a lower income earner?

Yes, if you earn up to AUD 37,500, you're eligible for the Low Income Tax Offset (LITO), which gives you a flat credit of up to AUD 700 off your tax bill. This offset gradually phases out as your income increases above AUD 37,500 and reaches zero at AUD 66,667, so it provides meaningful relief for lower and middle-income earners.

Is superannuation (retirement savings) deducted from my take-home pay?

No, superannuation is not deducted from your take-home pay. Your employer is required to contribute 12% of your salary directly into a superannuation account on your behalf, but this is employer-paid and separate from your wages, so your take-home pay is calculated on your gross salary minus only income tax and the Medicare Levy.

Do tax rates differ between Australian states and territories?

No, Australia has a unified national income tax system, so tax rates and brackets are the same regardless of which state or territory you live in. The data provided covers the standard resident individual model used across Australia, though some specific offsets or surcharges (like private health insurance surcharges) may vary based on individual circumstances.

What income level puts me in the highest tax bracket?

Income above AUD 190,000 is taxed at the highest rate of 45%, making Australia's top marginal rate 45% before considering the Medicare Levy. This is the top bracket in Australia's progressive tax system and applies to high-income earners such as senior professionals and business owners.

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