Question 1

How much tax do I pay in Australia?

Accepted Answer

The amount of tax you pay depends on how much you earn. Australia uses a progressive system with a tax-free threshold of $18,200. Above that, you pay 19% up to $45,000, 32.5% from $45,001 to $135,000, 37% from $135,001 to $190,000, and 45% above $190,000. You also pay a 2% Medicare levy on top. Enter your salary above to get the exact figure for your income.

Question 2

What is a tax calculator and how does this one work?

Accepted Answer

A tax calculator takes your gross (before-tax) income and applies the current ATO tax brackets to work out exactly how much income tax you owe, plus any offsets and levies. This calculator uses the 2025–26 financial year rates — including the Low Income Tax Offset (LITO) and Medicare levy — to give you an accurate take-home pay figure. Enter any salary annually, monthly, fortnightly, or weekly.

Question 3

What's the difference between effective and marginal tax rate?

Accepted Answer

Your marginal tax rate is the rate that applies to your last dollar of income — for example, 32.5% if you earn between $45,001 and $135,000. Your effective tax rate is the average rate across all your income — usually much lower. Someone earning $80,000 has a marginal rate of 32.5% but an effective rate of around 22–23%, because the first $18,200 is tax-free, and the next $26,800 is taxed at 19%.

Question 4

Does this include the Medicare levy?

Accepted Answer

Yes. The Medicare levy of 2% is included in the total tax calculation and shown separately in the breakdown. The calculator does not include the Medicare Levy Surcharge — the additional 1–1.5% that higher earners without private hospital cover may pay.

Question 5

What about HECS-HELP repayments?

Accepted Answer

HECS-HELP repayments are not included in this general calculator as they vary by individual loan balance. If you have a HELP debt, compulsory repayments kick in once your income exceeds $54,435 in 2025–26, ranging from 1% to 10% of your gross income. Use our specific after-tax pages (e.g. $80k after tax) to see HECS-HELP impacts at common salary amounts.

Question 6

What is the Low Income Tax Offset (LITO)?

Accepted Answer

The LITO is a tax reduction — not a deduction — available to lower income earners. For 2025–26, the maximum offset is $700, available to those earning up to $37,500. It phases out to zero at $66,667. The offset reduces your income tax payable; it cannot result in a refund on its own. This calculator includes LITO automatically.

Gross salary	Income tax	Medicare	Take-home/yr	Effective rate
$60,000	$9,767	$1,200	$48,933	18.4%
$70,000	$13,217	$1,400	$55,383	20.9%
$80,000	$16,467	$1,600	$61,933	22.6%
$90,000	$19,717	$1,800	$68,483	23.9%
$100,000	$22,967	$2,000	$75,033	25.0%

Income Tax Calculator Australia

2025–26 Australian tax brackets

Take-home pay at common salaries

What's deducted from your pay

After-tax breakdown by salary

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Frequently asked questions