Income Tax Calculator Australia 2026

No. Australia uses a progressive tax system where only the income above each threshold is taxed at the higher rate — your entire income isn't taxed at the highest rate. The breakdown here shows this clearly.

It includes the Medicare levy, with the low-income reduction. The levy is 2% of taxable income, but it is nil at or below $28,011 for a single person and shaded in between $28,011 and $35,013, where it is capped at 10 cents per dollar above the threshold. Foreign residents pay no levy at all. The Medicare Levy Surcharge is separate — it applies to high earners without private hospital cover and is not included here.

Yes. LITO is worth up to $700 for taxable income at or below $37,500. Above that it is withdrawn in two stages — 5 cents per dollar to $45,000, which leaves $325, then 1.5 cents per dollar until it reaches nil at $66,667. It is non-refundable, meaning it can reduce your tax to zero but never below it and never generates a refund by itself, so the breakdown caps the offset shown at the tax actually owed.

For 2026-27 an Australian resident on $100,000 with no deductions pays $20,520 in income tax plus $2,000 Medicare levy — $22,520 in total, leaving $77,480, or about $6,457 a month. That is an effective rate of 22.5% even though the marginal rate is 30%, because the first $18,200 is tax free and the next $26,800 is taxed at only 15%. A HELP debt, deductions or offsets would change the result.

No. This calculator estimates income tax and the Medicare levy only. If you have a study or training loan, use our HECS repayment calculator alongside it — since 1 July 2025 you repay 15 cents in the dollar on repayment income above $69,528 and 17 cents above $129,717, and that is deducted on top of the tax shown here.