Income Tax Calculator
Tax on your income, with brackets, average and marginal rates.
On $80,000 of taxable income in 2026-27 you pay $14,520 of income tax and $1,600 of Medicare levy. That's $16,120 in total, or 20.2% of your income, leaving you $63,880. Each extra dollar you earn is taxed at 32.0%.
Income tax uses the ATO's progressive brackets for the selected FY, less the low income tax offset. Medicare Levy is 2%, reduced for low incomes (nil up to the low-income threshold, then 10c per dollar until it reaches 2%). MLS applies if you have no private hospital cover and income exceeds the year's thresholds. HECS uses the ATO repayment schedule for the selected year.
Rates checked September 2026 against the ATO.
Australian income tax rates for 2026-27
Australia taxes income in brackets: each rate applies only to the part of your income inside that bracket, not to all of it. For 2026-27 the resident rates are:
- $0 to $18,200: nil (the tax-free threshold)
- $18,201 to $45,000: 15c for each dollar over $18,200, down from 16c in 2025-26
- $45,001 to $135,000: $4,020 plus 30c for each dollar over $45,000
- $135,001 to $190,000: $31,020 plus 37c for each dollar over $135,000
- $190,001 and over: $51,370 plus 45c for each dollar over $190,000
What else comes out: Medicare, the surcharge and HECS
Medicare levy: 2% of taxable income for most residents. It's reduced for low incomes: nil up to the low-income threshold, then 10c for each dollar above it until it reaches the full 2%.
Low income tax offset: up to $700 off your tax if your taxable income is $37,500 or less, phasing out completely at $66,667. The calculator takes it off for you.
Medicare levy surcharge: an extra 1% to 1.5% if you earn over $105,000 as a single ($210,000 for a family) in 2026-27 and don't have private hospital cover. The Medicare levy surcharge calculator compares it with the cost of a policy.
HECS/HELP: compulsory repayments start once repayment income is over $69,528 in 2026-27. They're 15c for each dollar over that threshold, rising to 17c higher up, and capped at 10% of total income. See the HECS calculator for when your debt will be paid off.
Income tax examples for 2026-27
$50,000: $5,520 on the brackets, less a $250 low income tax offset, is $5,270 of income tax. Add $1,000 of Medicare levy and the total is $6,270, 12.5% of income.
$80,000: $4,020 plus 30% of $35,000 is $14,520 of income tax. With $1,600 of Medicare levy the total is $16,120, 20.2% of income, and you keep $63,880.
$120,000: $26,520 of income tax and $2,400 of Medicare levy, $28,920 in total. Without private hospital cover a single person also pays a $1,200 Medicare levy surcharge.
$200,000: $55,870 of income tax and $4,000 of Medicare levy, $59,870 in total, 29.9% of income. The surcharge without cover is 1.5%, or $3,000.
Effective rate vs marginal rate
Your effective rate is your total tax divided by your income: the share of everything you earn that goes in tax. On $80,000 it's 20.2%.
Your marginal rate is the tax on your next dollar, including the Medicare levy. On $80,000 it's 32% (30% plus 2%). It's the rate that matters for a pay rise, a bonus, a tax deduction or salary sacrifice: a $1,000 deduction at a 32% marginal rate saves $320.
Moving into a higher bracket never reduces your take-home pay, because the higher rate only applies to the dollars above the threshold. The pay rise calculator shows exactly how much of a raise you keep.
Taxable income, not salary
Enter your taxable income: your salary and other income, less deductions and salary sacrifice. If you salary sacrifice into super or have work deductions, your taxable income is lower than your salary. To go from a salary package to take-home pay, with super and pay frequency, use the take-home pay calculator. To estimate your refund at tax time, use the tax refund estimator.
The calculator uses resident rates. It doesn't include the seniors and pensioners tax offset, the private health insurance rebate, or tax on super, capital gains discounts and other special items.
Frequently asked questions
$14,520 of income tax and $1,600 of Medicare levy, $16,120 in total. That's 20.2% of your income, leaving $63,880. Add the Medicare levy surcharge or HECS if they apply to you.
$18,200. Australian residents pay no income tax on the first $18,200 of taxable income. With the low income tax offset, you pay no income tax until about $22,900 in 2026-27.
The 16% rate on income between $18,201 and $45,000 fell to 15%. That saves up to $268 a year. From 1 July 2027 it falls again to 14%. See the tax cut calculator for what it's worth to you.
Yes. The calculator adds the 2% Medicare levy, with the reduction for low incomes, and the Medicare levy surcharge if you tick that you don't have private hospital cover and your income is over the threshold.
No. Only the dollars above the threshold are taxed at the higher rate, so you always take home more when you earn more.
The tax on your next dollar of income, including the Medicare levy. In 2026-27 the bracket rates plus the 2% levy are 17%, 32%, 39% and 47%. On lower incomes it's a little different: the Medicare levy is reduced below about $35,000, and the low income tax offset phases out between $37,500 and $66,667, which adds to the rate on those dollars.