Tax tools · 2025-26 financial year
Australian income tax bracket calculator
Live estimator using the current ATO resident income tax rates, plus the 2% Medicare levy and the Low Income Tax Offset. Numbers reflect rates effective 1 July 2024 onward (Stage 3 cuts, legislated).
★Key takeaways
- ✓Tax-free threshold is $18,200. You pay no income tax on the first $18,200 of taxable income.
- ✓The marginal rate jumps to 16% on income from $18,201 to $45,000, then 30% to $135,000, 37% to $190,000, and 45% above that.
- ✓Medicare levy is an additional 2% on most taxable income above $27,222 (2024-25 single threshold, indexed annually).
- ✓The Low Income Tax Offset (LITO) provides up to $700 off your tax bill for earners under $37,500, tapering to $0 at $66,667.
- ✓Use a registered tax agent if your situation involves rental property, share trading, capital gains, novated leasing or a side business. The agent fee is deductible the following year.
Live calculator
Estimate your 2025-26 tax
Enter your gross taxable income (before tax, after deductions). The calculator returns income tax, Medicare levy, LITO and the implied effective rate.
Income tax
$0
Medicare levy
$0
LITO offset
-$0
Total payable
$0
Take-home (after tax)
$0
~$0 / month
Effective tax rate
0.0%
Marginal: 0%
Estimate only. Excludes HECS-HELP repayments, Medicare Levy Surcharge, salary sacrifice, capital gains, business income and most offsets beyond LITO. For your actual tax position, use a TPB-registered tax agent.
Rate schedule
2025-26 resident tax brackets
Marginal rates apply progressively. You only pay the higher rate on the dollars inside that bracket, not on your whole income.
| Taxable income | Marginal rate | Tax on this income |
|---|---|---|
| $0 – $18,200 | 0% | Nil |
| $18,201 – $45,000 | 16% | 16c per $1 over $18,200 |
| $45,001 – $135,000 | 30% | $4,288 + 30c per $1 over $45,000 |
| $135,001 – $190,000 | 37% | $31,288 + 37c per $1 over $135,000 |
| $190,001 + | 45% | $51,638 + 45c per $1 over $190,000 |
Source: ato.gov.au/tax-rates-and-codes/tax-rates-australian-residents. Rates exclude the 2% Medicare levy and any applicable surcharge.
Worked example
Sarah, $90,000 PAYG salary
Sarah earns $90,000 a year as a full-time employee, no investments, no other income. Tax calculation runs band by band.
- First $18,200: nil tax
- $18,201–$45,000 ($26,800) at 16%: $4,288
- $45,001–$90,000 ($45,000) at 30%: $13,500
- Income tax subtotal: $17,788
- Medicare levy (2% of $90,000): $1,800
- LITO: $0 (income above $66,667 cut-off)
- Total tax payable: $19,588
- Net take-home: $70,412. Effective rate 21.8%, marginal rate 30%.
Marginal vs effective
Why your "tax bracket" is misleading
Australians often say "I’m in the 30% bracket". That is your marginal rate – the rate applied to the next dollar you earn. Your effective rate (what you actually pay across your whole income) is much lower because the first $18,200 is tax-free and the next $26,800 is taxed at only 16%.
Practical implications: salary sacrifice into super, work-related deductions, and negatively-geared property all save you tax at your marginal rate, not your effective rate. A $1,000 deduction at the 30% marginal rate is worth $300 back, not $218.
If you’re close to a bracket threshold ($45,000, $135,000, $190,000), the leverage of pre-tax super contributions or deductible spending goes up materially.
Other taxes layered on top
What this calculator does not include
Medicare Levy Surcharge
Additional 1.0–1.5% on income above $97,000 (single, 2025-26) if you have no eligible private hospital cover. Solved by holding compliant private hospital insurance.
HECS-HELP repayment
Compulsory repayment of 1–10% once your repayment income exceeds the minimum threshold ($54,435 for 2024-25, indexed). Withheld via PAYG by your employer.
Capital gains tax
Capital gains are added to your taxable income. Assets held more than 12 months get a 50% individual discount before being added.
Salary sacrifice + super
Concessional super contributions are taxed at 15% inside super, not at your marginal rate. The 2025-26 concessional cap is $30,000 including employer SG.
Fringe benefits
Reportable fringe benefits (novated lease, salary-packaged living expenses) appear on your payment summary and affect Medicare Levy Surcharge, HECS-HELP and Division 293 thresholds.
Division 293
An extra 15% tax on concessional super contributions for individuals with combined income + concessional contributions above $250,000 a year.
Common questions
Tax bracket calculator – common questions
Are these the current ATO tax rates for 2025-26?
Yes. These are the resident individual income tax rates that took effect 1 July 2024 under the Stage 3 cuts and continue to apply for the 2025-26 financial year (1 July 2025 to 30 June 2026). Verify the live rates at ato.gov.au/tax-rates-and-codes/tax-rates-australian-residents.
Does the calculator include the Medicare levy?
Yes. We add the 2% Medicare levy on taxable income above the $27,222 threshold for singles (2024-25 figure, indexed each year). Low-income earners are partially or fully exempt; the Medicare Levy Surcharge for higher earners without private hospital cover is not included here.
What is LITO and why is it in the calculation?
The Low Income Tax Offset reduces tax for earners up to $66,667. The maximum offset is $700 for taxable income of $37,500 or less. It then tapers off, hitting $0 at $66,667. LITO is non-refundable, so it can reduce your tax to zero but not below.
Is this calculation accurate for my situation?
It is a starting point only. The real number depends on deductions, offsets (LITO, SAPTO, private health rebate), HECS-HELP repayments, salary packaging, capital gains, business income and any reportable fringe benefits. For anything beyond a simple PAYG salary, use a registered tax agent.
What about non-residents and working holiday makers?
Different rates apply. Non-residents pay 30% from the first dollar up to $135,000, then step up. Working holiday makers (417 + 462 visas) pay 15% on income up to $45,000 then enter the resident steps. This calculator covers Australian tax residents only.
How does HECS-HELP affect my take-home pay?
HECS-HELP is a compulsory repayment levied on top of income tax once your repayment income exceeds the minimum threshold ($54,435 for 2024-25, indexed). Rates step from 1% to 10%. Your employer withholds an estimate via PAYG. This calculator does not model HECS-HELP; ato.gov.au publishes the current thresholds.