Australia Income Tax Calculator

In Australia, your take-home pay is your gross income minus income tax and the Medicare levy. The income tax system is progressive, charged through brackets, and from 1 July 2024 the Stage 3 tax cuts reshaped those brackets, lowering rates for most taxpayers. Understanding how it works helps you read your payslip and judge job offers accurately.

For 2025/26, Australian residents pay no tax on the first $18,200 — the tax-free threshold. Income from $18,201 to $45,000 is taxed at 16%, from $45,001 to $135,000 at 30%, from $135,001 to $190,000 at 37%, and above $190,000 at 45%. As with any bracketed system, each rate applies only to the income within its band, so earning more never lowers your overall take-home pay; only the portion in a higher bracket is taxed at the higher rate.

On top of income tax, most taxpayers pay the Medicare levy of 2% of taxable income, which helps fund the public health system. Low-income earners pay a reduced levy or none, and higher earners without adequate private hospital cover may also pay the Medicare Levy Surcharge — an extra charge designed to encourage private health insurance. This calculator applies the standard 2% levy.

Superannuation is a separate and important part of the picture. Your employer must pay the super guarantee — 12% of your ordinary earnings (from 1 July 2025) — into your super fund on top of your salary. This isn't deducted from your take-home pay in the way tax is; it's an additional contribution to your retirement savings. You can also make voluntary concessional contributions, which are taxed at a lower rate and can reduce your income tax.

Other factors can change your result. The tax-free threshold only applies if you claim it (usually with your main employer), so second jobs are often taxed more heavily up front. If you have a HECS-HELP study loan, compulsory repayments are deducted based on your income. Offsets like the low-income tax offset can reduce tax for eligible earners. And residents are taxed differently from non-residents, who don't get the tax-free threshold.

This calculator gives a clear estimate of your income tax, Medicare levy and net pay using current resident rates. Your actual pay depends on your full circumstances — study loans, offsets, private health cover and super arrangements — so treat the figure as a close guide and check the ATO for specifics.