Australia Tax Calculator (2026)
Income tax rates and take-home pay for Australia
Australia Income Tax Brackets (2025-26)
| Bracket | Income Range | Rate |
|---|---|---|
| Tax-free Threshold | A$0 - A$18,200 | 0.0% |
| First Marginal Tier | A$18,200 - A$45,000 | 16.0% |
| Second Marginal Tier | A$45,000 - A$135,000 | 30.0% |
| Third Marginal Tier | A$135,000 - A$190,000 | 37.0% |
| Top Marginal Tier | A$190,000+ | 45.0% |
Tax credit: A$700
Medicare Levy
| Bracket | Income Range | Rate |
|---|---|---|
| Standard Rate | A$0+ | 2.0% |
Medicare Levy Surcharge
| Bracket | Income Range | Rate |
|---|---|---|
| No Surcharge | A$0 - A$93,000 | 0.0% |
| Tier 1 | A$93,000 - A$108,000 | 1.0% |
| Tier 2 | A$108,000 - A$144,000 | 1.3% |
| Tier 3 | A$144,000+ | 1.5% |
Applies when income exceeds A$93,001
Key Facts
Tax Year
2025-26
Currency
AUD
Top Rate
45.0%
Brackets
5 brackets
Tax Credit
A$700
Social Contributions
1 item
Assumptions
- · Tax year used is 2025/26 (ending 30 June 2026).
- · Medicare Levy Surcharge (MLS) is included as a surcharge and assumes the worker does not have private hospital health insurance.
- · The 2% Medicare Levy is modeled as a social contribution at a flat rate, assuming income exceeds the low-income threshold.
- · The Low Income Tax Offset (LITO) is simplified to a single linear phase-out starting at 37,500 AUD.
- · Employer mandatory superannuation contributions (12%) are excluded per the workforce profile requirements.
Frequently asked questions
How much income tax do I pay in Australia if I earn AUD 60,000?
At AUD 60,000, you fall into the 30% tax bracket on income above AUD 45,000. Your tax would be calculated as: no tax on the first AUD 18,200, 16% on the next AUD 26,800 (AUD 4,288), and 30% on the remaining AUD 15,000 (AUD 4,500), minus the Low Income Tax Offset of up to AUD 700. You'll also pay a 2% Medicare Levy on top of your income tax.
What is the Medicare Levy Surcharge in Australia?
The Medicare Levy Surcharge is an additional charge if you earn above AUD 93,000 and don't have private hospital health insurance. The surcharge rate increases with income: 1% for income between AUD 93,000 and AUD 108,000, 1.25% between AUD 108,000 and AUD 144,000, and 1.5% for income above AUD 144,000.
Is there a tax-free threshold in Australia?
Yes, Australia has a tax-free threshold of AUD 18,200 per year, meaning you pay no income tax on the first AUD 18,200 of income. This is one of the most generous tax-free thresholds globally and makes it beneficial for lower-income earners.
How many income tax brackets are there in Australia?
Australia has 5 income tax brackets ranging from the tax-free threshold up to the top marginal rate of 45% for income over AUD 190,000. The brackets increase progressively: 16% (AUD 18,200 to AUD 45,000), 30% (AUD 45,000 to AUD 135,000), 37% (AUD 135,000 to AUD 190,000), and 45% (above AUD 190,000).
Do I need to pay superannuation contributions as an employee in Australia?
Employer mandatory superannuation contributions are not included in this calculator, as they are typically handled separately by employers. However, the 2% Medicare Levy and potential Medicare Levy Surcharge are included in your total tax obligations, so factor those into your take-home pay calculations.
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