The Finance Algorithm

Income Tax Calculator

Calculate your Australian income tax for 2026-27 (and prior years back to 2023-24). See your tax bracket, Medicare levy, and take-home pay.

Updated October 2026Built and checked by MaverickHow it's calculatedReport an error

Your numbers

Updates as you type
$
$85k

Gross income minus deductions = taxable income

Tax rates change each financial year

Non-residents pay different rates and no tax-free threshold

Most Australian residents pay the 2% Medicare levy

HECS repayments are additional to income tax

Without hospital cover, income over the surcharge threshold pays the Medicare Levy Surcharge (singles' thresholds; the Medicare levy calculator handles families)

The button asks our AI to explain these figures in words.

Your income tax

Take-home pay

$67,280

$2,588/fortnight

Total tax

$17,720

Effective: 20.9%

Marginal rate

30%

On your next dollar

Income tax only

$16,020

+$1,700 other

Take-home a week

$1,294

Take-home a fortnight

$2,588

Take-home a month

$5,607

A taxable income of $85,000 is higher than about 60% of people who paid tax, and lower than about 39% in 2023–24, from the ATO's taxation statistics. What Australians earn

Every dollar of gross income

Take-home vs the various government cuts (income tax, Medicare, MLS, HECS).

$85,000gross
Take-home79.2%
Income tax18.8%
Medicare2.0%

How tax stacks up across the brackets

Red bars are brackets you've fully or partly entered. Each dollar in a bracket is taxed at that bracket's rate: only your top dollars hit the highest rate.

  • Tax paid in bracket
  • Not reached
$0k–$18k$0$18k–$45k$4,020$45k–$135k$12,000$135k–$190k$0$190k+$0
Marginal vs effective. Your marginal rate (30%) is what you pay on the next dollar: useful for thinking about salary sacrifice, deductions, and overtime. Your effective rate (20.9%) is what you actually pay across all your income, usually lower because of the tax-free threshold and lower brackets.

How it works

Understanding how much tax you owe is essential for financial planning. Australia uses a progressive tax system: you pay different rates on different portions of your income, not a single flat rate on all of it. From 1 July 2026, the 16% bracket dropped to 15% (the second stage of the government's 2026-27/2027-28 tax cuts, on top of the 2024 Stage 3 cuts): a further cut to 14% is legislated from 1 July 2027. This calculator gives you a complete breakdown of your income tax, Medicare levy, HECS repayments, and actual take-home pay for any year from 2024-25 to 2026-27, including the low income tax offset.

  1. 1Enter your total annual taxable income (before tax, after deductions).
  2. 2Select the financial year you're calculating for.
  3. 3Choose your residency status: this affects your tax rates.
  4. 4Indicate whether you're subject to the Medicare levy.
  5. 5Select whether you have a HECS-HELP debt.
  6. 6Get a full breakdown of tax owed, Medicare levy, and net income.

The figures today

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.

Incomes by job and postcode

Worked examples

Average Australian Salary

Alex earns $92,000/year (2026-27), is an Australian resident, has Medicare and no HECS debt.

Tax on $92,000: $4,020 (15% on $18,201-$45,000) + $14,100 (30% on $45,001-$92,000) = $18,120. Medicare levy: $1,840 (2%). Total tax: $19,960. Take-home: $72,040/year or $2,771/fortnight.

High Income Earner

Priya earns $180,000/year (2026-27), has Medicare, private health, and a HECS debt of $25,000.

Tax: $31,020 + $16,650 = $47,670. Medicare: $3,600. HECS (marginal system): $17,576. Total deductions: $68,846. Take-home: $111,154/year or $4,275/fortnight. Her effective tax rate is 38.2%.

Questions people ask

What are the current Australian tax brackets?
For 2026-27 (residents): $0-$18,200 = 0%, $18,201-$45,000 = 15%, $45,001-$135,000 = 30%, $135,001-$190,000 = 37%, $190,001+ = 45%. The 15% rate (down from 16%) took effect 1 July 2026 and drops again to 14% from 1 July 2027.
What's the difference between marginal and effective tax rate?
Your marginal rate is the tax rate on your last dollar earned (determines the bracket you're in). Your effective rate is total tax divided by total income: the average rate across all brackets. Someone earning $100,000 in 2026-27 has a 30% marginal rate but pays about 20.5% of income in tax (22.5% with the Medicare levy).
How do tax deductions work?
Deductions reduce your taxable income, not your tax dollar-for-dollar. A $1,000 deduction saves you $1,000 × your marginal rate. At the 30% bracket, a $1,000 deduction saves $300 in tax (plus $20 of Medicare levy).

The terms, in plain English

Progressive Tax System
A tax system where higher income is taxed at higher rates. Australia has multiple tax brackets, and you only pay the higher rate on income within each bracket, not on your entire income.
Tax-Free Threshold
The first $18,200 of income for Australian residents that is not subject to tax. Non-residents do not receive this threshold.
Marginal Tax Rate
The tax rate applied to your last dollar of income. Determines how much tax you save from deductions and how much tax you pay on additional income.
Medicare Levy
A compulsory 2% levy on taxable income for Australian residents to fund the public healthcare system. Low-income earners may qualify for a reduction or exemption.

Official sources

Tax Refund Estimator

Estimate how much you'll get back (or owe) at tax time.

Medicare Levy Calculator

Calculate your exact Medicare levy and surcharge obligations.

PAYG Withholding Calculator

Check if your employer is withholding the right amount of tax.