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 tax will I pay on my salary in Australia?
Australia uses a progressive tax system with five income tax brackets ranging from 0% to 45%. If you earn under AUD 18,200, you pay no income tax at all. For every dollar above that threshold, the rate increases gradually, reaching 45% for income over AUD 190,000. You'll also pay a 2% Medicare levy on top of your income tax, which funds Australia's public healthcare system.
What is the Low Income Tax Offset (LITO) and who qualifies?
The Low Income Tax Offset is a credit worth up to AUD 700 for lower-income earners. If you earn AUD 37,500 or less, you get the full AUD 700 credit applied directly to your tax bill. The offset gradually phases out as your income rises above AUD 37,500, reaching zero at AUD 66,667, so it benefits working Australians in the lower to middle income brackets.
Do I need to pay for private health insurance in Australia?
Australia has a public healthcare system funded by the Medicare levy (2% of your income). While private health insurance is optional, some high-income earners may face an additional surcharge if they don't have private cover, though this calculator assumes you're either covered or exempt. It's worth checking your eligibility and options if you're relocating, as the rules can affect your overall tax position.
What is the superannuation guarantee and does it affect my take-home pay?
Superannuation is Australia's mandatory retirement savings system, with employers required to contribute 12% of your salary into a super fund on your behalf. This employer contribution is not deducted from your take-home pay, so you receive your full salary while building retirement savings automatically. It's a key part of Australia's employment system and a significant benefit for workers.
Is this tax information the same across all Australian states and territories?
Australia's income tax system is national and applies uniformly across all states and territories, so the tax brackets and rates shown here apply no matter where you work in the country. There are no additional state or territory income taxes to worry about. However, other taxes like stamp duty and property taxes can vary by location, so it's worth checking your specific state if you're buying property.
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