Medicare Levy
Most Australian residents pay a Medicare levy of 2% of their taxable income. Low-income earners may be eligible for a reduction or exemption.
Australian Tax Calculator 2025-2026
Calculate your income tax, Medicare levy, and take-home pay instantly. Updated with the latest ATO tax rates including Stage 3 tax cuts.
Calculate Your Tax
Your Tax Summary
Gross Income
$0
Income Tax
$0
Medicare Levy
$0
Total Tax & Deductions
$0
Take Home Pay
$0
per year
Tax Bracket Breakdown
Effective Tax Rate:
0%
Why Use Our Australian Tax Calculator?
Understanding your tax liability is essential for effective financial planning, yet navigating Australia's progressive tax system can be confusing. Our free tax calculator takes the complexity out of tax calculations by instantly showing you exactly how much income tax you will pay, what your Medicare levy contribution is, and how HELP debt repayments affect your take-home pay.
Whether you are negotiating a salary, budgeting for the year ahead, or simply curious about how the Stage 3 tax cuts have benefited you, this calculator provides accurate estimates based on the official Australian Taxation Office rates for the 2025-2026 financial year. Simply enter your annual income, select your preferences, and receive a detailed breakdown of your tax obligations in seconds.
How to Use This Calculator
Using our Australian tax calculator is straightforward. Enter your annual gross income (your salary before any deductions) in the income field. Select how often you are paid to see your take-home pay broken down by pay period. Choose the relevant financial year, and toggle the options for Medicare levy, HELP debt, and non-resident status based on your circumstances.
The calculator instantly displays your income tax, Medicare levy (if applicable), HELP repayments (if selected), total deductions, and your net take-home pay. The tax bracket breakdown shows how your income is taxed across different brackets, while the effective tax rate tells you the overall percentage of your income going to tax.
Common Questions About This Tool
Does this calculator account for tax deductions I can claim?
No, this calculator estimates tax based on your gross income before any deductions. Work-related expenses, charitable donations, and other deductions reduce your taxable income. To see your tax liability after deductions, subtract your estimated deductions from your gross income and enter that figure into the calculator.
Why might my actual tax differ from this estimate?
Several factors can cause differences: tax offsets (like the Low and Middle Income Tax Offset), deductions, income from multiple sources, capital gains, and individual circumstances not captured here. This calculator provides a solid baseline estimate but is not a substitute for a complete tax return calculation or professional advice.
Should I include my super contributions in the income figure?
Enter your gross salary before superannuation. Employer super guarantee payments (currently 11.5%) are paid on top of your salary and are not part of your taxable income. Salary sacrifice super contributions, however, reduce your taxable income, so if you salary sacrifice, you would enter your salary minus those contributions.
Australian Tax Rates 2025-2026
The following tax rates apply to Australian residents for the 2025-26 financial year. These rates include the Stage 3 tax cuts that came into effect on 1 July 2024.
| Taxable Income | Tax Rate | Tax on This Income |
|---|---|---|
| $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 and over | 45% | $51,638 plus 45c for each $1 over $190,000 |
HELP/HECS Repayments
If you have a HELP debt, repayments start when your income exceeds $54,435 (2025-26). Rates range from 1% to 10% based on your income.
Financial Year
The Australian financial year runs from 1 July to 30 June. The 2025-26 financial year runs from 1 July 2025 to 30 June 2026.
HELP/HECS Repayment Rates 2025-2026
HELP repayments are calculated based on your repayment income and collected through the tax system.
| Repayment Income | Repayment Rate |
|---|---|
| Below $54,435 | Nil |
| $54,435 – $62,850 | 1.0% |
| $62,851 – $66,620 | 2.0% |
| $66,621 – $70,618 | 2.5% |
| $70,619 – $74,855 | 3.0% |
| $74,856 – $79,346 | 3.5% |
| $79,347 – $84,107 | 4.0% |
| $84,108 – $89,154 | 4.5% |
| $89,155 – $94,503 | 5.0% |
| $94,504 – $100,174 | 5.5% |
| $100,175 – $106,185 | 6.0% |
| $106,186 – $112,556 | 6.5% |
| $112,557 – $119,309 | 7.0% |
| $119,310 – $126,467 | 7.5% |
| $126,468 – $134,056 | 8.0% |
| $134,057 – $142,100 | 8.5% |
| $142,101 – $150,626 | 9.0% |
| $150,627 – $159,663 | 9.5% |
| $159,664 and above | 10.0% |
Frequently Asked Questions
How is income tax calculated in Australia?
Australian income tax is calculated using a progressive tax system. This means different portions of your income are taxed at different rates. The first $18,200 is tax-free (tax-free threshold), and rates increase as your income rises through each tax bracket.
What are the Stage 3 tax cuts?
The Stage 3 tax cuts came into effect on 1 July 2024. Key changes include: the 19% tax rate reduced to 16%, the 32.5% rate reduced to 30%, the 37% bracket threshold increased to $135,000, and the 45% bracket threshold increased to $190,000.
Who pays the Medicare Levy?
Most Australian residents for tax purposes pay the 2% Medicare levy. You may qualify for a reduction or exemption if you're a low-income earner, have certain medical conditions, or are in other specific circumstances.
When do I need to repay my HELP/HECS debt?
You start making HELP repayments when your repayment income exceeds the minimum threshold ($54,435 for 2025-26). Repayments are calculated as a percentage of your income and collected through the tax system.
What is the tax-free threshold?
The tax-free threshold is $18,200. If you're an Australian resident for tax purposes, the first $18,200 of your income is not taxed. Non-residents do not have access to the tax-free threshold.
How do I know if I'm a resident for tax purposes?
Tax residency is different from citizenship or visa status. Generally, you're a resident if Australia is your permanent home, you've been in Australia for more than half the tax year, or you're an Australian Government employee posted overseas.
Is this calculator accurate?
This calculator provides estimates based on current ATO tax rates. It's designed for general guidance only. For complex tax situations, superannuation, deductions, or offsets, please consult a registered tax agent or the ATO.
What deductions can I claim?
Common deductions include work-related expenses (uniforms, tools, travel), self-education expenses, working from home costs, and charitable donations. Keep records of all expenses you intend to claim.
Latest Tax Guides
Explore our in-depth guides to better understand Australian taxation and maximise your financial outcomes.
Understanding Australian Tax Brackets 2025-2026: A Complete Guide
Learn how the progressive tax system works, current tax rates, and how to calculate your income tax liability.
Read ArticleStage 3 Tax Cuts Explained: What They Mean for Your Wallet
Comprehensive guide to the Stage 3 tax cuts implemented in July 2024 and how they affect your take-home pay.
Read ArticleHow to Reduce Your Taxable Income Legally in Australia
Legal strategies to minimise your tax liability, from superannuation contributions to legitimate deductions.
Read ArticleAbout the Australian Tax Calculator
Welcome to tax-calculator.com.au, Australia's trusted free online income tax calculator. Our calculator is designed to help Australian residents and workers understand their tax obligations for the 2025-2026 financial year and beyond.
Understanding Australian Income Tax
The Australian Taxation Office (ATO) uses a progressive tax system where different portions of your income are taxed at different rates. This means as your income increases, higher portions are taxed at higher rates through various tax brackets. Our calculator automatically applies these brackets to give you an accurate estimate of your tax liability.
Stage 3 Tax Cuts Explained
From 1 July 2024, significant changes came into effect under the revised Stage 3 tax cuts. The 19 cent tax rate was reduced to 16 cents, benefiting all taxpayers earning above the tax-free threshold. The 32.5% marginal rate dropped to 30%, and threshold adjustments mean Australians keep more of their hard-earned money. These changes are reflected in our 2025-26 calculations.
Medicare Levy and Surcharge
The Medicare levy is a 2% tax that helps fund Australia's public health system. Most Australian residents for tax purposes are required to pay this levy. Low-income earners may be eligible for reductions or exemptions. Additionally, higher-income earners without appropriate private health insurance may need to pay the Medicare Levy Surcharge.
HELP and Student Debt Repayments
If you have a Higher Education Loan Program (HELP) debt, also known as HECS, repayments are calculated based on your repayment income. For the 2025-26 financial year, compulsory repayments begin when your income exceeds $54,435. Our calculator includes HELP repayment calculations to give you a complete picture of your take-home pay.
How to Use This Tax Calculator
Simply enter your annual gross income, select your pay frequency, and choose your financial year. Our calculator instantly shows your estimated income tax, Medicare levy, any HELP repayments, and your net take-home pay. You can toggle options for Medicare levy inclusion, HELP debt, and non-resident status for personalised results.
Tax Planning Tips for Australians
Effective tax planning can help you minimise your tax liability legally. Consider maximising your superannuation contributions, claiming all eligible work-related deductions, keeping accurate records throughout the year, and consulting with a registered tax agent for complex situations. Remember, the Australian financial year runs from 1 July to 30 June.
Disclaimer
This tax calculator provides estimates for informational purposes only and should not be considered financial or tax advice. Tax calculations can be complex and may vary based on individual circumstances, deductions, offsets, and other factors not captured in this calculator. For accurate tax advice, please consult a registered tax agent or contact the Australian Taxation Office directly. All tax rates and thresholds are sourced from official ATO publications and are current as of January 2026.