Income Tax Calculator 2026-27
Tax time — or just curious where your pay actually goes.
Calculate your Australian income tax for 2026-27. Shows marginal tax, Medicare levy, Low Income Tax Offset (LITO), and your effective tax rate. ATO rates, updated annually.
Estimates only. Actual tax depends on deductions, offsets, and other income.
How Australian income tax is calculated for 2026-27
Progressive marginal rates
Australian income tax is calculated on a progressive scale — you pay each rate only on income within that bracket. For 2026-27 residents: 0% on $0–$18,200; 15% on $18,201–$45,000; 30% on $45,001–$135,000; 37% on $135,001–$190,000; 45% above $190,000. The Medicare levy (2%) is assessed separately. Source: ATO — Individual income tax rates.
| Income bracket | Marginal rate | Max tax on bracket |
|---|---|---|
| $0–$18,200 | 0% | $0 |
| $18,201–$45,000 | 15% | $4,020 |
| $45,001–$135,000 | 30% | $27,000 |
| $135,001–$190,000 | 37% | $20,350 |
| $190,001+ | 45% | On excess |
2026-27 ATO income tax rates and key thresholds
Key 2026-27 thresholds
Tax-free threshold: $18,200 (residents only). LITO maximum: $700 for income ≤ $37,500, phasing out to nil at $66,667. Medicare low-income shade-in: $28,011–$35,013 approx. HECS compulsory repayment: starts at $69,528. Medicare Levy Surcharge: $105,000 single / $210,000 family (without private health).
| Threshold | 2026-27 amount |
|---|---|
| Tax-free threshold | $18,200 |
| LITO maximum | $700 |
| LITO phases out at | $66,667 |
| MLS threshold (single) | $105,000 |
| HECS repayment starts | $69,528 |
Medicare levy and Medicare Levy Surcharge explained
Medicare levy (2%)
The Medicare levy is 2% of taxable income, assessed on top of income tax. It funds Australia's public health system. Low-income earners below approximately $28,011 pay a reduced levy or nil.
Medicare Levy Surcharge (1–1.5%)
Singles earning over $105,000 (families over $210,000) without adequate private hospital cover pay an additional surcharge of 1%–1.5%. The calculator above optionally includes this if you select "No private health" at Standard precision or above.
Low Income Tax Offset (LITO) 2026-27
Up to $700 in tax relief
The Low Income Tax Offset (LITO) automatically reduces income tax for Australian residents with lower incomes. Maximum $700 for income ≤ $37,500. Phase-out: $0.05 per $1 between $37,500–$45,000, then $0.015 per $1 between $45,001–$66,667. Above $66,667, LITO is zero.
| Income | LITO value |
|---|---|
| Up to $37,500 | $700 |
| $45,000 | $325 |
| $55,000 | $175 |
| $66,667+ | $0 |
HECS-HELP compulsory repayment thresholds 2026-27
Repayment starts at $69,528
If you have a HECS-HELP (student loan) balance, compulsory repayments begin when your repayment income reaches $69,528. Since 1 July 2025 HECS-HELP uses a marginal system: you repay 15c for each dollar of income above $69,528 (up to $129,717), then $9,028 plus 17c per dollar above that (to $186,050), after which the repayment is capped at 10% of total repayment income. Your employer withholds these via PAYG if you tick the HELP debt box on your TFN declaration.
| Repayment income | Compulsory repayment |
|---|---|
| Up to $69,528 | Nil |
| $69,528–$129,717 | 15c per $ over $69,528 |
| $129,717–$186,050 | $9,028 + 17c per $ over $129,717 |
| $186,050+ | 10% of total income |
Australian take-home pay by salary 2026-27
Take-home pay table (with Medicare levy, no HECS)
| Gross salary | Income tax | Medicare 2% | Take-home | Monthly |
|---|---|---|---|---|
| $40,000 | $3,270 | $800 | $35,930 | $2,994 |
| $60,000 | $8,520 | $1,200 | $50,280 | $4,190 |
| $80,000 | $14,520 | $1,600 | $63,880 | $5,323 |
| $100,000 | $20,520 | $2,000 | $77,480 | $6,457 |
| $120,000 | $26,520 | $2,400 | $91,080 | $7,590 |
| $150,000 | $36,570 | $3,000 | $110,430 | $9,203 |
| $200,000 | $55,870 | $4,000 | $140,130 | $11,678 |
| $300,000 | $100,870 | $6,000 | $193,130 | $16,094 |
| $500,000 | $190,870 | $10,000 | $299,130 | $24,928 |
Excludes super (12% SG) and HECS repayment if applicable.
Australian income tax brackets 2026-27 (Stage 3 cuts)
Resident tax rates 2026-27 (Stage 3 tax cuts)
| Taxable income | Tax rate | Tax on bracket |
|---|---|---|
| $0 - $18,200 | 0% | Nil |
| $18,201 - $45,000 | 15% | Up to $4,020 |
| $45,001 - $135,000 | 30% | Up to $31,020 |
| $135,001 - $190,000 | 37% | Up to $51,370 |
| $190,001+ | 45% | Plus 45% above |
Non-resident tax rates (no tax-free threshold)
| Taxable income | Rate |
|---|---|
| $0 - $135,000 | 30% |
| $135,001 - $190,000 | 37% |
| $190,001+ | 45% |
Working holiday maker rates
| Taxable income | Rate |
|---|---|
| $0 - $45,000 | 15% |
| $45,001 - $135,000 | 30% |
| $135,001 - $190,000 | 37% |
| $190,001+ | 45% |
Australian tax deductions guide 2026-27
Common work-related deductions
Uniforms and work clothing (compulsory or registered occupation-specific). Self-education directly related to current income. Home office expenses ($0.70/hour fixed rate or actual expenses). Tools and equipment under $300 immediate, over $300 depreciated. Professional memberships and subscriptions.
Vehicle expenses methods
Cents per km method: 91c/km up to 5,000km. Logbook method: claim business % of all costs (fuel, rego, insurance, depreciation) using 12-week logbook. High-use vehicles benefit from logbook method.
Home office deductions
Fixed rate: $0.70/hour worked from home (covers utilities, phone, internet). Actual method: claim depreciation of furniture + utility proportions based on floor space. Must have dedicated workspace.
Investment deductions
Interest on investment loans. Management fees for investment portfolios. Tax agent fees (prior year). Insurance premiums for rental property. Negative gearing losses offset other income.
Self-education expenses
Course fees, textbooks, stationery, travel, home office for study. Must be directly related to current employment (not future career change). Includes CPE and professional development.
Donation deductions
Gifts of $2+ to Deductible Gift Recipients (DGR). Must have receipt showing DGR status. Workplace giving often allows pre-tax donations for cleaner record-keeping.
Using superannuation to reduce income tax Australia
Concessional contributions cap
$32,500/year for 2026-27 (including employer SG). Contributions taxed 15% in super instead of marginal rate (up to 47%). Carry forward unused cap for 5 years if balance under $500k. Major tax saving for higher earners.
Salary sacrifice to super
Employer agreement to redirect pre-tax salary to super. On $120k income: salary sacrifice $15k saves $4,500 tax (from 30% to 15%). Cumulative over career, compound effect is massive.
Non-concessional contributions
After-tax contributions to super. Cap $130,000/year. Bring-forward rule allows 3 years ($390,000) in one year if under age 75 and total super balance under $1.9m (2024-25 cap).
First Home Super Saver (FHSS)
Use super to save for first home. Voluntary contributions up to $15,000/year, $50,000 total. Withdraw with deemed earnings for home deposit. Taxed at marginal rate - 30% (low/no tax for low earners).
Spouse super contribution
Contribute up to $3,000 to low-income spouse's super, receive $540 tax offset. Spouse must earn under $40,000. Useful for couples with different earning levels.
Australian tax offsets and rebates 2026-27
Low Income Tax Offset (LITO)
Up to $700. Full amount below $37,500. Tapers 5c/$ above $37,500 until $45,000, then 1.5c/$ to zero at $66,667. Automatic via tax return.
Senior and Pensioner Tax Offset (SAPTO)
Up to $2,230 single / $1,602 each couple. For eligible pensioners and seniors above age-pension age. Tapered above income thresholds.
Private Health Insurance Rebate
Government contribution to private health insurance premium: 8-31% depending on income and age. Reduces need to pay Medicare Levy Surcharge.
Spouse Super Offset
Up to $540 tax offset for contributing to low-income spouse's super. Requires spouse income under $40,000. Maximum offset at $37,000 spouse income.
Invalid and Invalid Carer Offset
Up to $3,261 if you maintain an invalid or carer spouse/relative. Specific eligibility criteria. Requires ATO confirmation.
Zone Tax Offset
Available to residents of remote areas of Australia. Zone A: $1,173 base + 50% of dependents offsets. Zone B: $57 base + 20%. Specific postcode eligibility.
Australian Medicare Levy and Surcharge 2026-27
Medicare Levy (2%)
2% of taxable income for most Australians. Phases in below approximately $28,011 for singles; families and seniors have higher thresholds (2026-27 figures). Reduces to nil at low incomes. Different thresholds for seniors/pensioners.
Medicare Levy Surcharge (MLS)
| Income threshold (single) | MLS rate |
|---|---|
| Up to $105,000 | 0% |
| $105,001 - $123,000 | 1.0% |
| $123,001 - $164,000 | 1.25% |
| Above $164,000 | 1.5% |
Avoiding MLS with private health insurance
Holding appropriate private hospital cover exempts you from MLS. For high-income earners, private health insurance often costs less than MLS — effective saving. Calculate whether cover + premium < MLS amount.
Family thresholds
Family thresholds are combined income. Add $1,500 per dependent child. Example: family with 2 kids: threshold $210,000 + $3,000 = $213,000 for 1% MLS tier. Family with income under threshold: no MLS even at high single incomes.
Australian Capital Gains Tax 2026-27
How CGT works in Australia
Capital gain added to taxable income and taxed at marginal rate. 50% discount if asset held 12+ months (individuals). Principal residence exempt (main home). No separate CGT rate — progressive marginal rates.
50% CGT discount
Individuals and trusts: 50% discount on net capital gains after 12-month hold. Super funds: 33.3% discount. Companies: no discount. Enormous tax saving for patient investors.
Main residence exemption
Principal place of residence CGT exempt while it's your main home. Rules: establish as main residence; 6-year rule allows renting and keeping exemption for up to 6 years absence. Partial exemption if used for business.
Negative gearing and CGT
Investment property losses offset other income while held. Capital gain taxed on sale — with 50% discount if held 12+ months. Combined tax strategy: offset income each year, pay tax on sale at discounted rate.
Small business CGT concessions
Four concessions that can reduce or eliminate CGT for qualifying small businesses: 15-year exemption, 50% active asset reduction, retirement exemption ($500k lifetime), rollover relief. Worth hundreds of thousands to eligible business sellers.
Australian investment tax guide 2026-27
Dividend tax with franking credits
Fully franked dividend: company paid 30% tax. Gross-up dividend, claim credit. $70 cash dividend = $100 grossed up + $30 franking credit. On marginal rate 47% + 2% Medicare: owe $49 - $30 credit = $19 extra. On rate 0% (super pension): refund $30.
Interest income
Fully taxable at marginal rate. No discount. Held via offset account or high-interest savings: same tax treatment. For higher earners: investment bond (tax paid within bond at 30%) may be more tax-efficient for long-term interest-bearing.
Rental income and negative gearing
Rental income taxable. Allowable deductions: mortgage interest, rates, insurance, management fees, depreciation. Net loss offsets other income — 'negative gearing'. Capital gain on sale: 50% discount if held 12+ months.
ETF and managed fund distributions
Distributions taxable in year received (even if reinvested). Components: franked dividends (with credits), unfranked dividends, foreign income, interest, capital gains, return of capital. Tax statement from fund each year.
Foreign investment income
Foreign dividends taxable in Australia at marginal rate. Foreign tax credit for tax paid overseas. Foreign Investment Funds (FIFs) and Controlled Foreign Company rules for passive foreign income.
Cryptocurrency tax
ATO treats crypto as property for CGT. Each disposal (sell, trade, use) triggers CGT event. 50% discount if held 12+ months. Lost/stolen crypto may be deductible as capital loss. Complex rules — keep detailed records.
Australian income tax planning strategies 2026-27
Bring forward deductions
Prepay expenses (12 months deductible for investments). Pay invoices before 30 June. Bring forward super contributions. Sell loss-making investments. Each $1,000 brought forward = $300-470 tax saving at higher marginal rates.
Defer income where possible
Defer invoicing (self-employed). Defer capital gains to next year (if below discount threshold). Defer bonus to low-income year. Useful if next year's income expected lower.
Spouse income splitting
Investments in lower-earning spouse's name: lower marginal rate on income. Super contribution to spouse: $540 tax offset if spouse earns under $40k. Effective for couples with different income levels.
Family trust structures
Discretionary family trust can distribute income to beneficiaries at lower marginal rates. Complex, professional advice needed. Minors distributed adult-tax-free threshold.
Negative gearing
Investment property loss offsets income. Higher earners get larger benefit. Combined with 50% CGT discount on sale, creates tax-efficient wealth building. Watch ATO rules on loss-making strategies.
Home office deduction optimization
$0.70/hour fixed rate (simplest). Actual method: proportion of utilities, internet, depreciation of furniture. Dedicated room gets full apportionment. Hybrid worker: only hours worked from home claimed.
Australian tax return lodgement process
Lodgement methods
myTax (through myGov): free, easy, pre-filled data. Registered tax agent: extended deadlines, professional advice, typical fee $100-$250. Paper return: phasing out. Most Australians use myTax for standard returns.
Pre-filled information
ATO pre-fills salary/wages, bank interest, investment income, health fund info, government payments. Usually available by late July. Check for accuracy — employers and institutions occasionally report incorrectly.
Typical refund timeframes
Online lodgement: 2 weeks typical, up to 30 days. Paper return: 6-10 weeks. Complex returns with audit flags: can take months. Direct deposit to nominated account.
Record-keeping requirements
Keep records 5 years from lodgement. Include: receipts, logbooks, work-from-home records. Digital (photos of receipts) acceptable. ATO app has built-in record-keeping. Missing records = can't substantiate deductions if audited.
Amendments and corrections
Can amend return within 2 years of lodgement notice (individuals). Corrects mistakes or adds missed deductions. Online via myTax or through agent. Genuine mistakes don't typically trigger penalties.
Audit triggers
Common triggers: large work-related deduction claims vs similar occupations, rental losses that don't match property type, large charity donations on low income, missing third-party reported income. ATO data-matching catches most discrepancies.
Australian tax scenarios for specific situations
Working holiday maker
Different tax rates apply: 15% up to $45,000, then progressive. No tax-free threshold. Must register for tax file number. Most backpackers working farm jobs qualify.
Temporary residents (bridging visa, 457)
Tax residency determined by 183-day test or domicile. Residents pay on worldwide income; non-residents only on Australian-sourced. Temporary residents may get reduced rates on foreign employment income.
PhD students with scholarship
Commonwealth scholarships: tax-free. Other scholarships may be tax-free if for genuine education. Stipends for PhD: usually tax-free if studying full-time and meets criteria. Tutor/demonstrator income taxable.
FIFO (fly-in fly-out) workers
Travel costs usually deductible if dual purpose (commute not). Living away from home allowance (LAFHA) has specific rules. Zone tax offset for remote postings. Keep detailed records of days and locations.
Contractor vs employee tax
Employee: PAYG withholding, salary. Contractor: quarterly BAS, GST if over $75k, all expenses tracked, no employer super. Tax implications significant — ATO aggressive on misclassification.
Retirees with super pension
Pension income from super (age 60+): tax-free. Plus tax-free Age Pension if eligible. State pensions taxable. Dividend franking credits refunded — can recover 30% paid at company level.
❓ Frequently asked Frequently asked questions
How much tax do I pay on $80,000 in Australia?
On $80,000 in 2026-27, income tax (before offsets) is $14,520. LITO is nil above $66,667. Adding Medicare levy ($1,600), total tax is approximately $16,120. Effective rate ~20.2%. Marginal rate: 30%.
What is marginal vs effective tax rate?
Your marginal rate is what you pay on the next dollar earned — at $80,000 that's 30%. Your effective rate is total tax divided by total income — much lower because lower brackets attract lower rates. At $80,000, effective rate is ~20.2%.
Does super get taxed as income?
Employer SGC contributions (12% in 2026-27) are taxed at 15% inside the fund, not counted as your personal income. Salary sacrifice contributions also reduce your taxable income. Super withdrawals from age 60 are generally tax-free.
What changed with the Stage 3 tax cuts?
The Stage 3 cuts (1 July 2024) lowered the $18,201–$45,000 rate to 16% and extended the 30% bracket to $135,000. From 1 July 2026 (2026-27) the bottom rate falls again to 15%, with a further cut to 14% legislated for 1 July 2027. The 30%, 37% and 45% brackets are unchanged.
Where these figures come from
Every threshold and tax rate on this page is taken from the Australian Taxation Office (ATO) — the source of record for Australian income tax, Medicare levy, HECS/HELP repayment, and capital gains tax.
- Individual income tax rates (2026–27, Stage 3) — ATO — Individual income tax rates.
- Medicare levy & surcharge — ATO — Medicare levy.
- HECS/HELP repayment thresholds — ATO — Study and training support loans.
- Capital gains tax rules — ATO — Capital gains tax.
- GST rules — ATO — GST.
- Tax offsets & LITO/LMITO — ATO — Tax offsets.
Last checked: July 2026. Rates and thresholds are reviewed against the source of record each November, when annual adjustments for the following tax year are published.
Select the question that matches where you are right now.
Your result shows the estimated tax position based on the income, deductions, and offsets you entered — using current published tax rates and thresholds.
Use this to understand your tax position before lodging. Compare scenarios — a salary sacrifice, additional deduction, or income change — to see how each affects your tax.
Not a tax return or ATO assessment. Your actual tax outcome depends on your complete tax return, including items not modelled here. Consult a tax agent for complex situations.
Uses current published rates and thresholds. All calculations run in your browser — no data is stored or sent to any server.
Tax results are driven by your total taxable income, marginal rate bracket, and eligible deductions. The interaction between these three determines your effective tax rate.
Each dollar above a threshold is taxed at the next rate. Moving from the 30% to the 37% bracket doesn't mean all income is taxed at 37% — only the portion above the threshold.
Deductions reduce taxable income (saving at your marginal rate). Offsets reduce tax payable dollar-for-dollar. An offset is worth more than a deduction of the same amount.
The 2% Medicare levy applies to most taxpayers. The surcharge (1–1.5%) applies if income exceeds thresholds and you don't hold private health insurance.
To reduce your tax, focus on legitimate strategies that shift income timing, increase deductions, or take advantage of concessional structures.
Claim all eligible work-related expenses, home office costs, and investment deductions. A tax agent can identify deductions you may be missing.
Contributions up to the concessional cap are taxed at 15% inside super instead of your marginal rate — an immediate saving for anyone above the 15% bracket.
Prepaying deductible expenses before 30 June or deferring income can shift your tax position between financial years.
Tax is connected to income, super, and investment decisions. Use these calculators to model the adjacent factors.
See exactly how much reaches your bank account after tax, Medicare, and HECS deductions.
Pay calculator →See the tax benefit of additional salary sacrifice or voluntary super contributions.
Super contributions →If you're selling an asset, model the CGT impact including the 50% discount for assets held over 12 months.
CGT calculator →