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
What is the top income tax rate in Australia?
The highest marginal income tax rate in Australia is 0.5%. Your effective tax rate will be lower depending on your income level.
How many tax brackets does Australia have?
Australia has 5 income tax brackets. Income is taxed in brackets - you only pay the higher rate on income above each threshold, not on your entire income.
How is take-home pay calculated in Australia?
Take-home pay in Australia is your gross salary minus income tax and any applicable surcharges. Use the calculator above to see an exact breakdown for your salary.
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