Australian Income Tax Calculator 2025-26 —
Take-Home Pay, Tax Brackets & Refund Estimate

The Australian tax return season starts on 1 July each year — the day after End of Financial Year (EOFY, 30 June). On 1 July the ATO opens lodgement via myTax (through myGov) and registered tax agents. However, most employers and banks finalise their PAYG, interest, and dividend data with the ATO by mid-to-late July, so for most people the easiest time to lodge is from late July onward, when myTax pre-fills your income data automatically. Lodging in the first week of July without checking pre-fill often means manually entering numbers your employer hasn't reported yet — a common cause of amended returns later.

If you lodge yourself via myTax or paper, the deadline is 31 October. If you use a registered tax agent and are on their lodgement program by 31 October, you generally get an extension to 15 May the following year (sometimes later for some clients). Lodging late attracts a Failure to Lodge penalty starting at $330 and increasing every 28 days up to ~$1,650. If you're expecting a refund there's technically no penalty for late lodgement (no tax owing) — but you can't claim a refund until you lodge. If you'll owe money, lodge on time even if you can't pay; the ATO offers payment plans.

Your tax refund (or amount owing) at lodgement is the difference between PAYG tax already withheld this financial year and your total tax liability. Total liability = income tax (after LITO) + Medicare Levy + Medicare Levy Surcharge (if applicable) + HELP/HECS repayment. Use the PAYG withheld field on this calculator: enter the total tax shown on your year-to-date payslips (look for 'YTD Tax' on your latest payslip from late June). If PAYG withheld > total liability, you'll get a refund; if less, you'll owe at lodgement. Common reasons for larger refunds: working only part of the year, deductible work expenses, private health insurance rebate, salary sacrifice into super reducing taxable income.

The Australian resident income tax rates for 2025-26 (1 July 2025 – 30 June 2026) are: $0–$18,200 — 0% (tax-free threshold); $18,201–$45,000 — 19%; $45,001–$120,000 — 32.5%; $120,001–$180,000 — 37%; $180,001 and above — 45%. These are the same Stage 3 rates that applied from 1 July 2024. In addition, most residents pay a 2% Medicare Levy. The Low Income Tax Offset (LITO) provides up to $700 in tax relief for incomes below $66,667. Non-residents are taxed at 32.5% from $0 with no tax-free threshold and no LITO.

The tax-free threshold for Australian residents is $18,200 for the 2025-26 financial year (unchanged since 2012-13). Income below $18,200 is tax-free. The Low Income Tax Offset (LITO) of up to $700 effectively extends the tax-free threshold to approximately $21,885 — at which point the 19% tax on income above $18,200 is fully offset by the LITO. Non-residents are not entitled to the tax-free threshold and are taxed at 32.5% from the first dollar of income.

The Medicare Levy is 2% of taxable income for most Australian residents, paid on top of income tax to fund the public health system. It applies from approximately $32,500 income (with a shade-in from $26,000 where the levy is 10% of income above $26,000 until it reaches 2% of income). If you have no adequate private hospital cover and earn above $93,000 (single), you also pay the Medicare Levy Surcharge (MLS) of 1–1.5% on your entire income. The MLS is designed to encourage higher earners to take out private hospital insurance.

The Medicare Levy Surcharge (MLS) is an additional 1–1.5% tax on total income for Australian residents earning above $93,000 (single, 2025-26 estimate) who do not hold adequate private hospital cover. The MLS tiers are: $93,001–$108,000: 1%; $108,001–$144,000: 1.25%; $144,001+: 1.5%. To avoid the MLS, take out private hospital cover with an excess no greater than $750 (single) or $1,500 (family). For a person earning $100,000 without private cover, the MLS costs $1,000/year — roughly the cost of a basic hospital cover policy. Privately insuring is often cost-neutral at this income level.

The LITO is a non-refundable tax offset (credit) that reduces income tax payable. For 2025-26: maximum $700 for taxable income up to $37,500; reduces by 5 cents per dollar from $37,500 to $45,000 (offset falls from $700 to $325); reduces by 1.5 cents per dollar from $45,000 to $66,667 (offset falls from $325 to $0). The LITO is applied automatically by the ATO — you do not need to claim it separately. Residents only. The LITO effectively makes income up to approximately $21,885 tax-free for most residents.

If you have a HELP/HECS (student loan) debt, you must make compulsory repayments once your Repayment Income exceeds $54,435 (ATO 2025-26 threshold). The repayment rate ranges from 1% at the minimum threshold to 10% for incomes above $159,663. Unlike income tax, HELP repayments are applied to your entire repayment income at the applicable rate — not just the income above the threshold. This can create a 'HECS cliff' where earning $1 more can cost hundreds of dollars in repayments.

The Super Guarantee (SG) rate increased to 12% on 1 July 2025 (up from 11.5% in 2024-25), as part of the scheduled increase to the legislated 12% final rate. Your employer must contribute 12% of your ordinary time earnings (OTE) to your superannuation fund. This is in addition to your salary — not taken from it — though some salary package arrangements treat super as part of the total package (CTC). The concessional contributions cap for 2025-26 is $30,000 (individual), which includes employer SG contributions plus any salary sacrifice.

Estimated 2025-26 income tax for Australian residents (before any offsets, including Medicare Levy): On $80,000: income tax $17,547 + LITO ($0) + Medicare Levy $1,600 = ~$19,147 total, take-home ~$60,853. On $100,000: income tax $24,497 + Medicare Levy $2,000 = ~$26,497 total, take-home ~$73,503. On $150,000: income tax $43,497 + Medicare Levy $3,000 = ~$46,497 total, take-home ~$103,503 (add MLS if no private cover). These figures use the 2025-26 Stage 3 brackets and exclude HECS repayments, salary sacrifice, and investment income. Use the calculator above for your exact situation.