Income tax calculator — Australia
Estimate 2026–27 Australian income tax for your taxpayer type and Medicare levy treatment, with every step shown.
Annual income after deductions. This is what tax is worked out on — not your gross salary if you claim deductions.
- Resident income tax
- $19,020
- Medicare levy
- $1,900
- Total tax
- $20,920
How your selections are applied
- Taxpayer type
- Australian resident
- Medicare levy choice
- Standard levy (auto-adjusted)
- Resident income tax · $0 to $18,200$18,200 × 0%
- $0
- Resident income tax · $18,200 to $45,000$26,800 × 15%
- $4,020
- Resident income tax · $45,000 to $95,000$50,000 × 30%
- $15,000
- Income tax before offsets
- $19,020
- Low Income Tax OffsetNo LITO at this income
- $0
- Medicare levy2% × $95,000
- $1,900
- Estimated total tax
- $20,920
Resident LITO and the 2026–27 individual Medicare levy low-income phase-in are applied automatically.
Average tax rate 22% · marginal rates apply only to income in each bracket. This starts from taxable income, not gross salary, so it is not a payslip take-home figure.
What the Medicare levy changes
The Medicare levy is separate from income tax. It helps fund Australia's public health system and is normally up to 2% of an Australian resident's taxable income.
For a single person who is not eligible for SAPTO, this calculator applies no levy up to $28,011, phases it in at 10 cents per $1 above that amount, then applies the full 2% from $35,013.
What taxpayer type changes
- Australian residents use the resident scale, may receive LITO, and normally pay the Medicare levy after any low-income reduction.
- Full-year foreign residents use the foreign-resident scale. They do not receive the tax-free threshold or LITO and do not pay the Medicare levy.
- Working holiday makers use a separate scale for working-holiday taxable income. Treaty exceptions and mixed income types are not included.
- Choose the full-year Medicare exemption only if you qualify for the whole year through an eligible medical or Defence category, foreign-resident period, or Medicare Entitlement Statement.
Full and half exemptions can depend on qualifying days and your dependants. The exemption option covers a full exemption for the whole year only. Family or SAPTO reductions, part-year or half exemptions, and the separate Medicare levy surcharge are not included.
Check the ATO reduction and exemption rules ↗Included
- Resident, foreign-resident and working-holiday-maker scales for 2026–27
- Low Income Tax Offset for residents (up to $700, phasing out by ~$66,667)
- Individual Medicare levy low-income phase-in or a full-year exemption
Not included
- Medicare levy surcharge & private health rebate
- Study and training loans (HELP/HECS repayments)
- Salary sacrifice, super contributions and other offsets
- Family, SAPTO and part-year Medicare levy adjustments
What this means
Australia taxes personal income on a marginal scale: each rate applies only to the slice of income that falls inside its bracket. Earning one more dollar is never taxed at more than its bracket's rate, so a pay rise can't leave you worse off. This estimate uses the official 2026–27 resident rates, in which the second bracket dropped from 16% to 15% on 1 July 2026.
The selected taxpayer type changes the scale. Residents can receive the Low Income Tax Offset (LITO); foreign residents do not receive the tax-free threshold or LITO; working holiday makers use their separate scale. For residents, the Medicare levy uses the 2026–27 individual low-income phase-in before reaching 2%, unless a full-year exemption is selected.
The after-tax figure subtracts the estimated tax from the taxable income you entered. It is not a payslip take-home estimate when your gross salary differs from taxable income. The average rate shown is measured against the entered taxable income and is lower than the top marginal rate because lower slices are taxed more lightly.
Formula & worked example
total tax = tax on the selected taxpayer scale
− resident LITO, when eligible
+ resident Medicare levy, when applicable
Resident scale: 0% to $18,200; 15% to $45,000; 30% to $135,000; 37% to $190,000; 45% above.
Foreign-resident scale: 30% to $135,000; 37% to $190,000; 45% above.
Working-holiday-maker scale: 15% to $45,000; 30% to $135,000; 37% to $190,000; 45% above.Taxable income $95,000 — Australian resident, 2026–27
- Income tax: $4,020 + 30% × ($95,000 − $45,000)
- $19,020
- Low Income Tax Offset (nil above ~$66,667)
- − $0
- Medicare levy: 2% × $95,000
- $1,900
- Total tax
- $20,920
Entered taxable income after estimated tax: $74,080 — an average tax rate of 22.0%.
How this calculation works
The calculation follows the formulas, definitions and assumptions explained on this page. The references below support the method and any stated boundaries.
Official sources
- Income Tax Rates Act 1986 (Cth), Schedule 7 — Resident marginal rates, 2026–27 (as amended by Act No. 28 of 2025)
- ATO — Tax rates – Australian resident — Resident income tax rates by income year
- ATO — Low income tax offset (LITO) — $700 offset and phase-out thresholds
- Federal Register — Withholding Schedules Instrument 2026 — 2026–27 Medicare levy low-income threshold and phase-in
- ATO — Medicare levy reduction or exemption — Ordinary 2% levy, exemption categories and full/half qualifying days
- ATO — Foreign resident tax rates — 2026–27 foreign-resident marginal scale
- ATO — Working holiday maker tax rates — Working-holiday taxable-income scale
- Australian Government — Budget 2026–27, cost of living — 16% to 15% second-bracket cut from 1 July 2026