Income Tax Calculator Australia
Calculate your Australian income tax using the official ATO tax brackets for the 2025-26 financial year. See your bracket-by-bracket breakdown, Medicare levy, Low Income Tax Offset (LITO), and fortnightly/monthly take home pay.
2025-26 financial year (1 July 2025 - 30 June 2026) - Australian resident rates
Australian Tax Estimator
Your total annual taxable income before tax (salary, wages, etc.)
How to Use This Tax Calculator
Enter Your Income
Type your annual taxable income before tax. This is typically your gross salary or total income for the financial year after any allowable deductions.
Click Calculate
Press the Calculate Tax button to see your full tax breakdown using the 2025-26 ATO rates, including LITO and Medicare levy.
Review Your Breakdown
See your income tax calculated bracket by bracket, plus your fortnightly, monthly, and weekly take home pay figures.
2025-26 Australian Income Tax Brackets
Resident Individual Tax Rates
| Income Range | Rate | Tax on This Bracket |
|---|---|---|
| $0 - $18,200 | 0% | Nil |
| $18,201 - $45,000 | 16% | 16c for each $1 over $18,200 |
| $45,001 - $135,000 | 30% | $4,288 plus 30c for each $1 over $45,000 |
| $135,001 - $190,000 | 37% | $31,288 plus 37c for each $1 over $135,000 |
| $190,001+ | 45% | $51,638 plus 45c for each $1 over $190,000 |
Source: Australian Taxation Office (ATO) - 2025-26 resident tax rates. The above rates do not include the 2% Medicare levy.
Low Income Tax Offset (LITO) 2025-26
| Taxable Income | LITO Amount |
|---|---|
| $37,500 or less | $700 |
| $37,501 - $45,000 | $700 minus 5c per $1 over $37,500 |
| $45,001 - $66,667 | $325 minus 1.5c per $1 over $45,000 |
| $66,668 or more | Nil |
The LITO is automatically applied when you lodge your tax return. Combined with the tax-free threshold, you effectively pay no income tax on taxable income up to $22,575.
Medicare Levy 2025-26
| Taxable Income | Levy |
|---|---|
| Below $27,222 | Nil |
| $27,222 to $34,027 | 10% of amount over $27,222 |
| Above $34,027 | 2% of total taxable income |
The Medicare levy funds Australia's public health system. The Medicare levy surcharge (an additional 1%-1.5%) may apply if your income exceeds $93,000 and you do not have private hospital cover.
How Australian Income Tax Is Calculated
Take Home = Gross Income - Income Tax + LITO - Medicare LevyAustralia uses a progressive tax system. Your income is not taxed at a single flat rate. Instead, each portion of your income is taxed at the rate for the bracket it falls into.
Income Tax = Sum of (Income in each bracket x Bracket rate)The calculation steps are:
- Apply the tax-free threshold - the first $18,200 is not taxed
- Calculate income tax - apply each bracket's rate to the portion of income within that bracket
- Subtract the LITO - if your income is below $66,667, the Low Income Tax Offset reduces your tax payable
- Add the Medicare levy - 2% of your taxable income (reduced or nil for lower incomes)
- Your take home pay is what remains after income tax (less LITO) and the Medicare levy
Your marginal rate is the rate on your last dollar of income. Your effective rate is your total deductions (income tax after offsets plus Medicare levy) divided by gross income, representing the average rate you actually pay.
Example: $85,000 income
Tax-free: $18,200 x 0% = $016% bracket: $26,800 x 16% = $4,28830% bracket: $40,000 x 30% = $12,000Total income tax = $16,288 - $0 LITO = $16,288Medicare levy = $85,000 x 2% = $1,700Take home = $85,000 - $16,288 - $1,700 = $67,012Frequently Asked Questions
What are the Australian income tax brackets for 2025-26?
For the 2025-26 financial year, Australian resident individual tax rates are: $0 to $18,200 at 0% (tax-free threshold), $18,201 to $45,000 at 16%, $45,001 to $135,000 at 30%, $135,001 to $190,000 at 37%, and $190,001 and above at 45%. These rates were confirmed in the May 2025 Federal Budget.
What is the Low Income Tax Offset (LITO)?
The LITO is a tax offset that reduces the amount of tax you pay if you are a low-income earner. For 2025-26, the maximum offset is $700 for taxable incomes of $37,500 or less. It reduces by 5 cents per dollar between $37,501 and $45,000, then by 1.5 cents per dollar between $45,001 and $66,667, at which point it phases out completely. Combined with the tax-free threshold, you effectively pay no income tax if your taxable income is $22,575 or less.
How is the Medicare levy calculated?
The Medicare levy is 2% of your taxable income. However, if your taxable income is $27,222 or less, you pay no Medicare levy. Between $27,222 and $34,027, the levy is phased in at 10% of the amount above $27,222. Above $34,027, you pay the full 2% on your entire taxable income. This calculator does not include the Medicare levy surcharge, which may apply if you earn above $93,000 and do not have appropriate private hospital cover.
Does this calculator include superannuation?
No. Superannuation (currently 11.5% for 2025-26) is paid by your employer on top of your gross salary and is not deducted from your pay. The amounts shown in this calculator represent your gross salary and the tax deducted from it. Your total remuneration package may be higher when superannuation is included.
What deductions are not included in this calculator?
This calculator estimates income tax, LITO, and the Medicare levy only. It does not account for HECS-HELP/VETSL repayments, Medicare levy surcharge, salary sacrifice arrangements, private health insurance rebates, work-related deductions, or any other offsets such as the Senior Australians and Pensioners Tax Offset (SAPTO). Your actual take-home pay may differ based on your personal circumstances.
Important Disclaimer
This calculator provides estimates for the 2025-26 financial year based on ATO resident tax rates. It does not account for HECS-HELP or VETSL study loan repayments, Medicare levy surcharge, salary sacrifice, superannuation contributions, private health insurance offsets, or any other adjustments. Non-residents, working holiday makers, and foreign residents have different tax rates. Results are for illustrative purposes only. For official tax calculations, refer to the ATO or consult a registered tax agent.