Calculates your tax cut for 2026–27, the 16%-to-15% rate cut that took effect 1 July 2026, compared with 2025–26, based on your income.
Updated October 2026Built and checked by MaverickHow it's calculatedReport an error
Your tax cut a year
+$268
$17,788 in 2025-26, $17,520 in 2026-27: 1.5% less tax
Extra a week
+$5
Extra a fortnight
+$10
Extra a month
+$22
Everyone earning $45,000 or more saves the same $268. Below that the cut is smaller, and nil where the low income tax offset already clears the tax.
On 1 July 2026, the second round of the government's staged income tax cuts took effect: the 16% bracket (for income between $18,201 and $45,000) dropped to 15%. All other thresholds and rates are unchanged from 2025-26. The cut is worth up to $268 a year, reached once your income hits $45,000: it phases in gradually below that. It's delivered through lower PAYG withholding, not a lump sum, so most people are already banking it in every payslip since 1 July 2026. Use this estimator to see your exact saving compared with the old 2025-26 rates.
Half of the Australians who paid tax in 2023–24 had a taxable income under about $71,000, and the top 10% earned more than about $157,000, from the ATO's statistics.
Chris earns $90,000. For 2026–27, the calculator shows a $268 tax cut compared to 2025–26.
Chris's employer automatically reduced tax withheld from each pay from 1 July 2026, so Chris has already been taking home an extra $268 a year (about $10 a fortnight) without doing anything.
Jamie earns $30,000: below the $45,000 point where the cut maxes out. The calculator estimates a $118 tax cut for 2026–27.
Below $45,000, the cut phases in at 1% of the income earned above the $18,200 tax-free threshold ($11,800 × 1% = $118 for Jamie). Above $45,000, everyone gets the same flat $268, no matter how high their income goes.