Tax Cut Calculator
What the 2026-27 tax cut, Stage 3 and the 2027 cut are worth to you, per year and per week.
On $80,000 of taxable income, this year's cut (the 16% rate falling to 15%) saves you $268 compared with 2025-26, about $5 a week. Compared with 2023-24, before the Stage 3 cuts, you keep $1,947 more a year. From 1 July 2027 the rate falls to 14%, which is worth another $268 a year.
Enter your taxable income for a year (salary less deductions and salary sacrifice). Uses resident rates, including the low income tax offset and Medicare levy. Medicare thresholds are held at 2025-26 values for later years.
| Year | Income tax | Medicare | Take-home | Per week |
|---|---|---|---|---|
2023-24 Before the Stage 3 cuts | $16,467 | $1,600 | $61,933 | $1,191 |
2024-25 & 2025-26 Stage 3: 16% / 30% / 37% / 45% | $14,788 | $1,600 | $63,612 | $1,223 |
2026-27 (this year) 16% rate cut to 15% | $14,520 | $1,600 | $63,880 | $1,228 |
2027-28 Legislated: 15% rate cut to 14% | $14,252 | $1,600 | $64,148 | $1,234 |
For each year I apply that year's resident tax brackets to your taxable income, subtract the low income tax offset, and add the Medicare levy. The 2026-27 change only affects income between $18,200 and $45,000 (now taxed at 15c instead of 16c), so the most anyone saves from it is $268 a year; the 2027-28 cut to 14c saves up to another $268.
Rates checked September 2026 against the ATO.
The tax cuts, in order
Australia's personal income tax rates have been cut three times in quick succession. The calculator compares each year on your income.
- Stage 3, from 1 July 2024: the 19% rate became 16%, the 32.5% rate became 30%, the 37% bracket started at $135,000 instead of $120,000, and the 45% rate started at $190,000 instead of $180,000.
- From 1 July 2026: the 16% rate on income between $18,201 and $45,000 fell to 15%.
- From 1 July 2027 (legislated): that rate falls again, to 14%.
How much is the 2026-27 tax cut worth?
The 2026-27 cut only changes the rate on income between $18,200 and $45,000. That band is $26,800 wide, and 1c on each of those dollars is $268. So anyone earning $45,000 or more saves exactly $268 a year, about $5.15 a week. Below $45,000 the saving is smaller, because less of your income is in that band.
For example, on $30,000 the saving is $118. On $80,000, $150,000 or $200,000 it's $268. The 2027-28 cut to 14% is worth the same again: up to another $268 a year.
Compared with before Stage 3
The bigger change was Stage 3. Compared with 2023-24, income tax and Medicare in 2026-27 are lower by:
- $673 a year on $30,000
- $1,447 on $60,000
- $1,947 on $80,000
- $2,447 on $100,000
- $3,997 on $150,000
- $4,797 on $200,000
When you'll see it in your pay
Employers use the ATO's withholding tables for the new year from 1 July, so the cut shows up in your regular pay rather than as a lump sum at tax time. On a weekly pay of $1,000 or more, expect about $5 extra a week from the 2026-27 cut.
If your pay didn't change on 1 July, check whether your employer has updated its payroll. The amount withheld is only an estimate either way: your tax return works out the actual tax on the year's income.
What the calculator includes
It uses resident tax rates, the low income tax offset and the Medicare levy for each year. For 2027-28 it holds the Medicare levy thresholds at the latest known values. It doesn't include HECS, the Medicare levy surcharge or other offsets. For your full take-home pay, including super and pay frequency, use the take-home pay calculator, and for a bracket-by-bracket breakdown use the income tax calculator.
Frequently asked questions
Up to $268 a year, about $5 a week. Everyone earning $45,000 or more gets the full $268, because the cut only lowers the rate on income between $18,200 and $45,000 from 16c to 15c in the dollar.
Yes. From 1 July 2027 the same rate falls from 15% to 14%. That's legislated and worth up to another $268 a year.
No. The thresholds stay at $18,200, $45,000, $135,000 and $190,000. Only the rate in the lowest taxed bracket changed, from 16% to 15%.
Compared with 2023-24, it depends on your income: about $1,700 on $80,000 and about $4,500 on $200,000 from Stage 3 alone. Enter your income above to see the exact figure, including the 2026-27 cut.
Your employer should have switched to the new withholding tables. If they haven't, you'll still get the difference back when you lodge your tax return.