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?
Australia has a progressive tax system with five income tax brackets ranging from 0% at the tax-free threshold (up to AUD 18,200) to 45% for income above AUD 190,000. Most people also pay a 2% Medicare Levy on top of their income tax, plus a potential Medicare Levy Surcharge if they earn over AUD 93,000 and don't have private hospital health insurance.
What is the tax-free threshold in Australia?
The tax-free threshold in Australia is AUD 18,200 per year, meaning you pay no income tax on earnings up to this amount. This is one of the most generous tax-free thresholds globally and applies to all residents, including expats and remote workers.
Do I have to pay the Medicare Levy Surcharge if I'm a high earner?
If you earn more than AUD 93,000 and don't have private hospital health insurance, you'll pay a Medicare Levy Surcharge on top of the standard 2% Medicare Levy. The surcharge ranges from 1% to 1.5% of your taxable income depending on your income level, so having private insurance can save you money if you're a higher earner.
What tax relief or offsets are available in Australia?
Australia offers a Low Income Tax Offset (LITO) worth up to AUD 700 that phases out as your income increases above AUD 37,500. This offset helps lower and middle-income earners reduce their tax liability, though it's not refundable if you don't owe enough tax to claim the full amount.
Is superannuation (retirement) deducted from my salary automatically?
Yes, employers are required to contribute 12% of your salary into a superannuation fund (retirement savings), but this is paid by your employer and not deducted from your take-home pay. However, the tax calculator on this page does not include these employer contributions in the calculations, so your actual retirement savings will be higher than your net income shown here.
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