Australian Income Tax Calculator
Calculate your 2026-27 income tax, Medicare levy, and take-home pay based on the latest ATO rates
Your Income Details
Most Australian residents pay the 2% Medicare levy. Low-income earners may be exempt.
Enter your income to see your tax breakdown
Results update instantly as you type
2026-27 Australian Tax Brackets
Source: Australian Taxation Office (ATO) — effective 1 July 2026
Australian Residents
Foreign Residents
No tax-free threshold. No Medicare levy. Tax applies from $1.
Working Holiday Makers
No tax-free threshold. Medicare levy exempt.
Understanding Australian Income Tax
Progressive Tax System
Australia uses a progressive (marginal) tax system. You only pay higher rates on the portion of income that falls within each bracket — not on your entire income. For example, if you earn $50,000, only the amount between $45,001 and $50,000 is taxed at 30%; the rest is taxed at the lower rates.
Tax-Free Threshold
Australian residents can earn up to $18,200 per financial year without paying income tax. To claim this threshold you must lodge a tax-free threshold declaration with your employer. Foreign residents and working holiday makers do not receive this benefit.
Medicare Levy
Most Australian residents pay a Medicare levy of 2% of their taxable income in addition to income tax. This funds the public healthcare system. Low-income earners may be exempt or pay a reduced levy. Foreign residents and working holiday makers are generally not liable for the Medicare levy.
Effective vs Marginal Rate
Your marginal rate is the rate that applies to your last dollar of income. Your effective rate is the actual percentage of total income paid in tax — always lower than the marginal rate due to the progressive nature of the system.
2026-27 Rate Changes
From 1 July 2026 the second bracket dropped from 16% to 15% on income between $18,201 and $45,000 — a $268 annual saving for anyone earning $45,000 or more. Other brackets are unchanged. A further cut to 14% is already legislated for 1 July 2027.
Tax Offsets & Deductions
This calculator uses gross income without deductions. In practice, you may reduce your taxable income through work-related deductions, salary sacrificing, negative gearing, or superannuation contributions. Tax offsets (like the low income tax offset) can also reduce the final amount of tax owed. A registered tax agent or accountant can help maximise your return.
Disclaimer
This calculator provides estimates based on 2026-27 ATO tax brackets and is intended as a guide only. It does not account for individual tax offsets, deductions, salary sacrifice arrangements, or other circumstances that may affect your actual tax liability. Always consult a registered tax agent or the ATO website for advice specific to your situation.
Want to Grow What You Keep?
Speak with a Jokuda finance specialist about structuring your finances to work harder for you.
From home loans to personal loans — we find the right product for your situation.