Financial Year:
Stage 3 rates · Super 12% · HECS threshold $67,000
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Your Income
$
Enter your full pre-tax salary in AUD
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$
Work expenses, donations, investment losses etc.
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Tax Options
Medicare Levy (2%) Standard for most Australian residents
Apply LITO (up to $700) Auto-applied by ATO for incomes under $66,667
HECS-HELP debt Marginal repayments kick in above $67,000
No private hospital cover (MLS) Extra 1–1.5% surcharge for singles over $93K
Show employer super (12%) Super Guarantee — paid on top of salary
Ready to Calculate

Enter your income and click Calculate Tax to see your full breakdown — tax, Medicare, HECS & super.

Take-Home Pay
$0
per year
Total Tax
$0
per year
Effective Rate
0%
of gross income
Employer Super
$0
12% SG (on top)
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Detailed Breakdown
Your Tax Bracket
ATO Official Rates · Stage 3

Australian Income Tax Brackets 2025–26

Australia uses a progressive tax system — only the income above each threshold is taxed at the higher rate. The Stage 3 tax cuts (from 1 July 2024) significantly reduced rates and raised thresholds for most Australians.

Taxable IncomeMarginal RateTax on BracketCumulative Tax
$0 – $18,2000%Nil$0
$18,201 – $45,00016¢ per $1$4,288$4,288
$45,001 – $135,00030¢ per $1$27,000$31,288
$135,001 – $190,00037¢ per $1$20,350$51,638
Over $190,00045¢ per $1—$51,638 + 45%
Rates exclude Medicare Levy (2%). LITO reduces tax by up to $700 for incomes under $66,667. Super Guarantee: 12%. Source: ATO
Stage 3 Tax Cuts

What Changed from 1 July 2024?

The Stage 3 tax cuts restructured Australia's income tax brackets, delivering savings for low and middle-income earners. The same rates continue into 2025–26 — and further cuts are legislated for 2026–27.

$18,201–$45,000
Was 19%
Now 16%
Saving up to $804/yr
$45,001–$135,000
Was 32.5%
Now 30%
Biggest benefit for middle-income earners
37% threshold
Was $120,000
Now $135,000
More income taxed at 30% not 37%
45% threshold
Was $180,000
Now $190,000
Top bracket starts $10K higher
From 1 Jul 2026
Current 16%
Drops to 15%
Legislated — $268/yr extra saving
Understanding Your Tax Bill

Key Components of Australian Income Tax

Your total Australian tax liability is made up of several components. Understanding each helps you accurately budget and lodge a correct tax return.

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Progressive Brackets

Only income above each threshold is taxed at the higher rate. A pay rise always leaves you better off — the higher rate never applies to your whole income.

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Medicare Levy (2%)

A flat 2% of taxable income funding Australia's public health system. Reduced for low-income earners below $29,207 (singles, 2025-26).

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LITO — Up to $700

The Low Income Tax Offset cuts up to $700 from tax owed for incomes up to $37,500. Phases out completely at $66,667. Applied automatically by the ATO — no separate claim needed.

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HECS-HELP Repayments

Student loan repayments begin above $67,000 (2025-26). The new marginal system charges 15% of income above $67K only — far more equitable than the old flat-rate model.

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Super Guarantee (12%)

Employers must contribute 12% of your ordinary time earnings to super from 1 July 2025. This is in addition to your salary and not deducted from your take-home pay.

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Medicare Levy Surcharge

Singles earning over $93,000 without private hospital cover pay an extra 1%–1.5% MLS. Adequate private hospital insurance eliminates this entirely.

Frequently Asked Questions

Australian Income Tax — Common Questions

The official tax-free threshold is $18,200. However, combined with the Low Income Tax Offset (LITO) of up to $700, most Australian residents effectively pay no income tax until income exceeds approximately $26,000. You claim the threshold by completing a Tax File Number declaration with your employer.
No — this is Australia's most common tax misconception. Only the portion of your income above each threshold is taxed at the higher rate. If your salary goes from $135,000 to $136,000, only that extra $1,000 is taxed at 37%. Your net pay always increases after a raise.
From 2025-26, HECS-HELP uses a new marginal system. You pay 15% of every dollar earned above $67,000 (up to $125,000), then 17% above $125,000 (up to $179,285). Previously, a small pay rise could trigger thousands in extra repayments on your entire income — the new system is far fairer. Your employer withholds repayments automatically via PAYG if you declare your debt.
The MLS is an extra 1%–1.5% tax for singles earning over $93,000 (and families over $186,000) who do not hold adequate private hospital cover. You can avoid it entirely by holding an eligible private hospital insurance policy — often cheaper than the surcharge itself for higher earners.
The Australian financial year runs 1 July – 30 June. Returns for 2025-26 can be lodged from 1 July 2026. The standard self-lodgement deadline is 31 October 2026. Using a registered tax agent typically extends this to May 2027. Lodge online via myGov / myTax or through a tax agent.
Common deductions include: work-related expenses (tools, uniforms, home office), self-education expenses related to your job, vehicle and travel costs, donations to registered charities, income protection insurance premiums, and investment-related costs (interest on loans, management fees). You must retain receipts. The ATO's myDeductions app makes record-keeping easy throughout the year.
Already legislated: from 1 July 2026 the 16% bracket rate drops to 15%. From 1 July 2027 it drops to 14%. These changes will save anyone earning $45,000 or more an additional $268 per year from 2026-27, and a further $268 from 2027-28 — without any action required from taxpayers.
This calculator provides estimates only using ATO 2025–26 published rates and does not constitute tax advice. Individual circumstances (residency, offsets, deductions) may vary your actual liability. Always verify with the ATO website or a registered tax agent before making financial decisions.

Tax Calculator Australia · ATO 2025–26 Stage 3 Rates · Medicare Levy 2% · Super 12% · LITO up to $700 · HECS threshold $67,000

Source: ATO Tax Rates · Updated April 2026