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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 16% (plus 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. At A$80,000 gross, an Australian employee pays around A$14,800 in income tax and A$1,600 in Medicare levy, taking home approximately A$63,600. At A$120,000, take-home is around A$90,800.
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.
Data & assumptions
- Tax year
- 2026
- Last updated
- 2026-07-17
- Employment assumption
- Full-time employee, single filer
Figures are estimates based on standard deductions and do not account for pension contributions, benefits in kind, or individual circumstances. See our methodology for how these numbers are calculated.
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.
What changed with the stage 3 tax cuts in 2024?
The stage 3 cuts took effect from 1 July 2024 and were the most significant change to Australian income tax in years. The 37% bracket was eliminated entirely, the 32.5% rate dropped to 30% on income from A$45,001 to A$135,000, and the 45% threshold moved from A$180,000 to A$190,000. The cuts were redesigned in early 2024 to deliver more benefit to middle-income earners than the original version before being legislated in their revised form.
What is a good salary in Australia?
Sydney and Melbourne are the most expensive cities; Brisbane, Adelaide, and Perth are more affordable. A single person in Sydney typically needs A$80,000–95,000 gross to live comfortably with rent factored in. The median full-time wage in Australia is around A$95,000 gross. Tech roles in Sydney and Melbourne commonly reach A$120,000–200,000+ for senior engineers. Superannuation adds a further 12% on top of gross that doesn't appear in your monthly pay but is real ongoing compensation.
How does Australian tax compare to New Zealand?
Australia's A$18,200 tax-free threshold is more generous than New Zealand's, which taxes from the first dollar. At comparable gross salaries, Australia generally gives a slightly better net across most of the income range. New Zealand's top rate of 39% above NZ$180,000 is lower than the combined Australian rate at equivalent high incomes. The super gap is also meaningful: Australia's 12% employer contribution is one of the most generous mandatory retirement savings schemes in the world.