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🇦🇺 Australia Income Tax Calculator 2025-26
Australia's tax-free threshold is A$18,200; you pay nothing on income up to that point. Above it, rates run from 18% (including the 2% Medicare levy) up to 47% on income over A$190,000. The Medicare levy funds the public health system and is included in the rates here, though its low-income exemption below roughly A$27,222 isn't modelled. Lower earners also get the Low Income Tax Offset, worth up to A$700, which phases out as income rises past A$37,500. Superannuation, Australia's compulsory retirement savings, is paid by your employer on top of your salary (12% from mid-2025), not deducted from it, so it doesn't reduce your take-home pay.
Australia Income Tax Brackets
| Income band | Rate |
|---|---|
| A$0 – A$18,200 | 0.00% |
| A$18,200 – A$45,000 | 16.00% |
| A$45,000 – A$135,000 | 30.00% |
| A$135,000 – A$190,000 | 37.00% |
| A$190,000 and above | 45.00% |
Take-home pay examples
| Gross / year | Net / year | Net / month |
|---|---|---|
| A$60,000 | A$50,012 | A$4,168 |
| A$90,000 | A$70,412 | A$5,868 |
| A$120,000 | A$90,812 | A$7,568 |
| A$150,000 | A$110,162 | A$9,180 |
Employee figures only, standard deductions applied. Pension contributions, benefits in kind, and other personal factors are not included.
Frequently Asked Questions
What is the Medicare levy?
It's a 2% charge on taxable income that funds Australia's public health system (Medicare). It's included in the rates shown here. Low-income earners get a reduced or zero levy below roughly A$27,222 to A$34,027, which this calculator doesn't model, so tax near the tax-free threshold may be slightly overstated.
Do I pay into superannuation myself?
Not by default. The compulsory Superannuation Guarantee (12% from 1 July 2025) is paid by your employer on top of your gross salary, not deducted from it. Voluntary extra contributions (salary sacrifice) are common but optional, so they're not included here.
What is the Low Income Tax Offset?
LITO is a tax credit worth up to A$700 for incomes up to A$37,500, phasing out gradually as you earn more, fully gone by A$66,667. This calculator models the first phase-out stage; real LITO tapers a little more gradually in the A$45,000 to A$66,667 range.