How to use the Income Tax Calculator
- 1 Enter your yearly income before tax, such as salary, wages and interest.
- 2 Enter your tax deductions, such as work-related expenses and donations.
- 3 Read your total tax including the Medicare levy.
- 4 Check the table for the low income tax offset and your income after tax.
Worked example
A resident with a taxable income of $90,000. Tax is $4,020 on the first $45,000 plus 30% of the next $45,000 ($13,500), which is $17,520. There is no low income tax offset at this income. The 2% Medicare levy adds $1,800, so total tax is $19,320 and income after tax is $70,680.
Features
2026-27 rates
Nil to $18,200, 15% to $45,000, 30% to $135,000, 37% to $190,000 and 45% above.
Low income tax offset
Up to $700, reducing above $37,500 and ending at $66,667.
Medicare levy
2% of taxable income, with the low-income reduction.
Average and marginal rate
See the share of income you pay and the rate on your next dollar.
When to use it
Tax time
Estimate your tax before you lodge your return.
Pay rises
See how much of a raise you keep.
Second jobs
Work out tax on your combined income.
Deductions
See how much a deduction saves at your marginal rate.
Frequently asked questions
What are the tax rates for 2026-27?
For residents: nil on the first $18,200, 15c per dollar from $18,201 to $45,000, $4,020 plus 30c per dollar to $135,000, $31,020 plus 37c to $190,000 and $51,370 plus 45c above $190,000.
What changed from 1 July 2026?
The first rate above the tax-free threshold fell from 16% to 15%. It is legislated to fall again to 14% from 1 July 2027.
What is the low income tax offset?
A non-refundable offset of up to $700 for incomes up to $37,500. It reduces by 5c for each dollar between $37,500 and $45,000 and by 1.5c for each dollar between $45,000 and $66,667.
Does everyone pay the Medicare levy?
Most residents pay 2% of taxable income. People on low incomes pay a reduced levy or none, and some, such as certain foreign residents, can claim an exemption.
What about the Medicare levy surcharge?
Singles earning over the surcharge threshold without private hospital cover pay an extra 1% to 1.5%. It is not included here.
Is this for foreign residents?
No. Foreign residents pay different rates with no tax-free threshold. This calculator is for Australian residents for tax purposes.
Does it include HELP repayments?
No. Use the HELP repayment calculator, or the pay calculator, which includes HELP.
When is the tax return due?
Returns for 2026-27 are due by 31 October 2027 if you lodge yourself. Using a registered tax agent usually gives you more time.
Results are estimates based on the official rates linked above. Confirm important figures with the issuing authority or a qualified adviser before you act on them.
Reviewed by ToolsUnlocked Team · Last updated