This tax calculator estimates the Australian income tax on your annual income, adds the Medicare levy if you keep that option on, and shows what is left as after-tax income. It is designed for Australian resident employees who want to sense-check a payslip, compare a proposed salary with their current one, or understand what a pay rise is actually worth after tax. Choose the financial year first, because the rates change between years, then enter your taxable income and read off your total tax, your effective rate and your marginal rate together. Those three figures answer different questions, and this page explains each one. The calculation runs entirely in your browser. Your income is never uploaded, stored or shared, so you can use your real salary figure with confidence.
How it works
Tax is charged in slices, not at one flat rate
Australia taxes resident income in slices called brackets. Each slice is taxed at its own rate, and only the dollars inside that slice pay that rate. For 2025-26, the ATO resident rates are: no tax on income up to $18,200; 16 cents per dollar over $18,200 up to $45,000; $4,288 plus 30 cents per dollar over $45,000 up to $135,000; $31,288 plus 37 cents per dollar over $135,000 up to $190,000; and $51,638 plus 45 cents per dollar over $190,000.
This slice system is why the two rates in your result differ. Your marginal rate is the rate on your next dollar, set by the highest bracket you reach. Your effective rate is your total tax divided by your total income, and it is always lower, because your first dollars were taxed lightly or not at all. It is also why a pay rise that pushes you into a higher bracket never makes you worse off overall: only the dollars above the threshold pay the higher rate.
The financial year selector
Tax rates are legislated per financial year, and the Australian financial year runs from 1 July to 30 June. This calculator carries the ATO resident tables for 2024-25, 2025-26, 2026-27 and 2027-28, and the year you select decides which table is applied. The second bracket rate steps down under legislated cuts: 16 percent to 30 June 2026, 15 percent in 2026-27 and 14 percent from 2027-28, with thresholds unchanged. Comparing the same income across two years in this tool is a clean way to see what a rate cut is worth to you in dollars, rather than in headlines. Always match the year to the year the income is earned, not the year you happen to be reading this.
Medicare levy and what is left out
If you leave the Medicare option on, the calculator adds the Medicare levy at 2 percent of taxable income, the rate most people pay. This version applies the flat 2 percent and does not apply the low income thresholds or reductions, so if you earn a low income your actual levy may be lower than the estimate shown.
Just as important is what the estimate deliberately excludes. It does not subtract tax offsets such as the low income tax offset, it does not include HELP debt repayments, and it does not include the Medicare levy surcharge. Your tax return works all of those out. That is also why the tax withheld on your payslip can differ from this result: your employer withholds each pay using the ATO tax tables, spreading your expected annual tax across the year, and any difference between withholding and your final bill becomes a refund or an amount owing when you lodge. All figures on this page are in AUD, and the income you enter should be your taxable income for the year, after any deductions you are counting, for the closest estimate.
Resident tax rates, 2026-27
| Taxable income | Rate | Tax at the start of this bracket |
|---|---|---|
| $0 to $18,200 | Nil | $0 |
| $18,201 to $45,000 | 15c for each $1 over $18,200 | $0 |
| $45,001 to $135,000 | 30c for each $1 over $45,000 | $4,020 |
| $135,001 to $190,000 | 37c for each $1 over $135,000 | $31,020 |
| Over $190,000 | 45c for each $1 over $190,000 | $51,370 |
Resident tax rates, 2025-26
| Taxable income | Rate | Tax at the start of this bracket |
|---|---|---|
| $0 to $18,200 | Nil | $0 |
| $18,201 to $45,000 | 16c for each $1 over $18,200 | $0 |
| $45,001 to $135,000 | 30c for each $1 over $45,000 | $4,288 |
| $135,001 to $190,000 | 37c for each $1 over $135,000 | $31,288 |
| Over $190,000 | 45c for each $1 over $190,000 | $51,638 |
Both tables are the ATO resident rates and exclude the Medicare levy, which the calculator adds separately at 2 percent when that option is on.
Worked example
An Australian resident earns $100,000 in 2025-26, with the Medicare levy included.
| Item | Calculation | Amount |
|---|---|---|
| First slice, $0 to $18,200 | Tax free | $0 |
| Second slice, $18,200 to $45,000 | Taxed at 16 percent | $4,288 |
| Third slice, $45,000 to $100,000 | 30 percent of $55,000 | $16,500 |
| Income tax | $4,288 + $16,500 | $20,788 |
| Medicare levy | 2 percent of $100,000 | $2,000 |
| Total tax | $20,788 + $2,000 | $22,788 |
| Income after tax | $100,000 – $22,788 | $77,212 |
Note how the slice method works in practice: the whole $100,000 is not taxed at 30 percent. Only the $55,000 above $45,000 is, which is why the effective rate comes out well below the 30 percent marginal rate.
Common questions
How is income tax worked out in Australia?
Australia taxes income in slices called brackets. The first 18,200 dollars is tax free for residents. Each slice above that is taxed at its own rate, so a pay rise never makes you worse off overall. This calculator uses the ATO resident rates for the year you select, including the legislated cuts to the second bracket: 16 percent to 30 June 2026, 15 percent in 2026-27 and 14 percent from 2027-28.
Does this calculator include the Medicare levy?
Yes, if you leave the Medicare option on. The Medicare levy is 2 percent of taxable income for most people. Version 1 of this calculator applies the flat 2 percent rate and does not apply the low-income thresholds or reductions, so if you earn a low income your actual levy may be lower than the estimate.
What is the difference between my marginal and effective tax rate?
Your marginal rate is the rate that applies to your next dollar of income, based on the highest bracket you reach. Your effective rate is your total tax divided by your total income. The effective rate is always lower, because the first slices of your income are taxed at lower rates or not at all.
Are tax offsets such as LITO included?
No. This calculator shows income tax at the ATO rates plus the Medicare levy. It does not subtract offsets such as the low income tax offset, and it does not include HELP debt repayments or the Medicare levy surcharge. Your tax return works all of those out.
Why is the tax on my payslip different from this estimate?
Your employer withholds tax each pay using the ATO tax tables, which spread your expected annual tax across the year. If your income varies, or you work part of a year, the withholding will not match your final tax bill exactly. Any difference becomes a refund or a bill when you lodge your return.
A note on estimates
The result is an estimate based on the ATO resident rates and the Medicare levy setting for the year you select. It is general information only, not tax or financial advice, and complex situations need a registered tax agent. Read our full disclaimer at /disclaimer/ before relying on a result. For related estimates, see /super-calculator/ for the super paid alongside your salary, /annual-leave-calculator/ for leave payouts and their tax view, and /fair-work-pay-calculator/ for how award pay is checked.