Where your income goes
Take-home pay vs income tax vs the Medicare levy.
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Tax & Money
Australia Income Tax Calculator
Enter your taxable income to estimate your 2026-27 ATO income tax, Medicare levy and take-home pay, using the current resident tax brackets.
Total tax & Medicare levy
$19,320
Income tax—
Medicare levy (2%)—
Effective tax rate—
Marginal tax rate—
Take-home pay—
How Australian income tax works
Australia uses a progressive tax system: your income is taxed in slices, with each slice taxed at the rate for its bracket, not your whole income at one rate. The first $18,200 is tax-free (the tax-free threshold), and most residents also pay the Medicare levy, an extra 2% of taxable income that funds Medicare.
This calculator uses the 2026-27 resident tax brackets, which include the legislated cut to the second bracket from 16% to 15% that took effect on 1 July 2026.
The formula
income tax = sum of (income in each bracket × that bracket's rate)
medicare levy = taxable income × 2%
total tax = income tax + medicare levy
take-home pay = taxable income − total tax
medicare levy = taxable income × 2%
total tax = income tax + medicare levy
take-home pay = taxable income − total tax
Worked example
On $90,000 of taxable income: nothing on the first $18,200, then $26,800 at 15% ($4,020), then $45,000 at 30% ($13,500), for $17,520 of income tax. Add the 2% Medicare levy ($1,800) for $19,320 total, leaving $70,680 take-home. That's an effective rate of about 21.5%, though the marginal rate on the next dollar earned is 32% (30% tax + 2% levy).
2026-27 resident tax brackets
| Taxable income | Tax rate |
|---|---|
| $0 – $18,200 | Nil |
| $18,201 – $45,000 | 15% |
| $45,001 – $135,000 | 30% |
| $135,001 – $190,000 | 37% |
| $190,001 and over | 45% |
Rates apply to Australian residents for tax purposes and exclude the Medicare levy, offsets such as LITO, and HECS-HELP repayments. Non-residents and working holiday makers have different rates.
Frequently asked questions
What are the 2026-27 tax brackets?
Nil to $18,200, then 15%, 30%, 37% and 45% as income rises.
What is the tax-free threshold?
$18,200 of taxable income is tax-free for residents each year.
What is the Medicare levy?
An extra 2% of taxable income funding Medicare, with reductions for low incomes not modelled here.
Does this include LITO or HECS?
No, it's income tax and the Medicare levy only, a planning estimate.
Marginal vs effective rate?
Marginal is the rate on your next dollar; effective is your total tax divided by total income.