Australian Income Tax Calculator 2025-26 & 2026-27 —
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.

For 2026-27 (1 July 2026 – 30 June 2027) the Australian resident rates are: $0–$18,200 — 0% (tax-free threshold); $18,201–$45,000 — 15%; $45,001–$135,000 — 30%; $135,001–$190,000 — 37%; $190,001 and above — 45%. The only change from 2025-26 is the second bracket falling from 16% to 15%, worth up to $268 a year; it drops again to 14% from 1 July 2027.

Every threshold is unchanged. Add the 2% Medicare Levy on top.

With the Low Income Tax Offset of up to $700, the effective tax-free threshold is about $22,867 in 2026-27 (up from $22,575 in 2025-26, because the offset now cancels tax charged at a lower rate). Non-residents are taxed at 30% from the first dollar with no tax-free threshold and no LITO.

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 — 16%; $45,001–$135,000 — 30%; $135,001–$190,000 — 37%; $190,001 and above — 45%. These are the Stage 3 rates that took effect from 1 July 2024 (the second-bracket rate was cut from 19% to 16% and its top raised from $120,000 to $135,000).

From 1 July 2026 (FY2026-27) the $18,201–$45,000 rate falls from 16% to 15% — a saving of up to $268 a year — and drops again to 14% from 1 July 2027; all other rates and thresholds stay the same. 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 30% 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 $22,575 — at which point the 16% tax on income above $18,200 is fully offset by the LITO. In 2026-27 that effective threshold rises to about $22,867, not because the offset changed but because the 15% rate means $700 of offset cancels tax on more income.

Non-residents are not entitled to the tax-free threshold and are taxed at 30% 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. For 2025-26 the low-income threshold for singles is $28,011: below that you pay nothing, between $28,011 and $35,013 the levy shades in at 10 cents per dollar above the threshold, and above $35,013 the full 2% applies.

Those thresholds were lifted 2.9% (from $27,222) in the Federal Budget of 12 May 2026 and applied retroactively to 1 July 2025, so early lodgers assessed on the old figure were adjusted automatically by the ATO. The 2026-27 thresholds are set in the next Budget and applied retroactively in the same way, so they are not published yet.

Separately, if you have no adequate private hospital cover and earn above $105,000 (single, 2026-27; $101,000 in 2025-26), you also pay the Medicare Levy Surcharge of 1–1.5% on your entire income.

The Medicare Levy Surcharge (MLS) is an additional 1–1.5% tax on your total income if you do not hold adequate private hospital cover. The thresholds are indexed annually.

For 2026-27 the single tiers are: nil up to $105,000; 1% from $105,001 to $123,000; 1.25% from $123,001 to $164,000; 1.5% above $164,000. For 2025-26 they were $101,000 / $118,000 / $158,000.

Family thresholds are double the single figures ($210,000 base in 2026-27, $202,000 in 2025-26), plus $1,500 for each dependent child after the first. Note the surcharge applies to your whole income, not just the amount above the threshold — so crossing it is a genuine cliff.

To avoid it, hold private hospital cover with an excess no greater than $750 (single) or $1,500 (family); extras-only policies do not count. For someone earning $110,000 in 2026-27 without cover, the MLS costs $1,100 a year — roughly the price of a basic hospital policy, which is why insuring is often close to cost-neutral at this income.

The LITO is a non-refundable tax offset (credit) that reduces income tax payable. It is unchanged in 2026-27.

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 $22,575 tax-free for most residents.

For 2026-27 the minimum repayment threshold is $69,528, indexed up from $67,000 in 2025-26. The 2026-27 schedule is: nil up to $69,528; 15c per dollar between $69,528 and $129,717; then $9,028.35 plus 17c per dollar between $129,717 and $186,050; and 10% of total repayment income above $186,050.

On $80,000 that is ($80,000 − $69,528) × 15% = about $1,571 for the year. The 2025-26 figures — the year most people are lodging for right now — are set out below.

For 2025-26 the minimum repayment threshold is $67,000 — up sharply from $54,435 in 2024-25. Repayments are also calculated differently: from 1 July 2025 the old whole-of-income model was replaced by a MARGINAL system, so you repay a percentage only of the income ABOVE the threshold, not on every dollar you earn.

The 2025-26 schedule is: nil up to $67,000; 15c per dollar between $67,000 and $125,000; then $8,700 plus 17c per dollar between $125,000 and $179,285; and 10% of total repayment income above $179,285. On $80,000 that is ($80,000 − $67,000) × 15% = $1,950 for the year, an effective rate of about 2.4%.

Because the rate now applies only to the excess, the old 'HECS cliff' — where earning $1 more could cost hundreds — no longer exists below $179,285. Note that Repayment Income is broader than taxable income: it adds back reportable fringe benefits, reportable employer super (so salary sacrifice does not reduce a HECS bill), and net investment losses.

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 qualifying earnings (QE) to your superannuation fund — QE replaced ordinary time earnings as the SG base on 1 July 2026 and additionally covers commissions, most bonuses relating to ordinary hours and salary-sacrificed amounts, though not overtime.

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 is $32,500 for 2026-27 (up from $30,000 in 2025-26, after indexation to average weekly ordinary time earnings), which includes employer SG contributions plus any salary sacrifice.

Estimated 2025-26 income tax for Australian residents (LITO applied where it applies, plus the 2% Medicare Levy): On $80,000: income tax $14,788 + LITO ($0) + Medicare Levy $1,600 = ~$16,388 total, take-home ~$63,612. On $100,000: income tax $20,788 + Medicare Levy $2,000 = ~$22,788 total, take-home ~$77,212 (just under the $101,000 MLS threshold).

On $150,000: income tax $36,838 + Medicare Levy $3,000 = ~$39,838 total, take-home ~$110,162 (add ~$1,875 MLS at the 1.25% tier if you have no private hospital cover). These figures use the 2025-26 Stage 3 brackets (16% / 30% / 37% / 45%) and exclude HECS repayments, salary sacrifice, and investment income.

From 1 July 2026 each of these bills falls by up to $268 as the second-bracket rate drops to 15%. Use the calculator above for your exact situation.