An educational estimate of income tax, Medicare levy, and take-home pay for Australian residents using FY2025–26 rates. Does not account for tax offsets or deductions. Not tax advice.
Australia uses a marginal tax system: different rates apply to different portions of income, not to the whole amount. Earning more never reduces your take-home pay — a higher rate only applies to the income above the threshold where that rate starts.
| Taxable income | Rate |
|---|---|
| $0 – $18,200 | Nil |
| $18,201 – $45,000 | 16% |
| $45,001 – $135,000 | 30% |
| $135,001 – $190,000 | 37% |
| Over $190,000 | 45% |
These are the Stage 3 rates, which came into effect 1 July 2024 and are unchanged for 2025–26.
Many Australians are entitled to the Low Income Tax Offset (LITO) and other offsets that reduce the actual tax payable — in some cases to zero for lower incomes. This calculator does not model offsets and will therefore overstate tax for many people. The ATO's individual income tax calculator is the right tool for an estimate that includes offsets.
The Medicare levy is 2% of taxable income for most residents. A low-income threshold exists below which the levy is reduced or nil — this calculator uses a simplified flat rate above a threshold and does not model the reduction near the threshold. The actual threshold is confirmed by the ATO each year.
From 1 July 2025, the HELP repayment system changed to a marginal system: repayments apply only to income above the threshold ($67,000 for FY2025–26), not to total income. This is a significant change from the prior whole-of-income system. If a source describes the old system, it is stale for 2025–26. Repayment income is technically broader than taxable income; this calculator uses gross income as a reasonable proxy and discloses the simplification.
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