Australian Tax

Australian Income Tax Calculator (2025–26)

Calculate your tax using current ATO brackets, Medicare levy, and LITO.

Your Income

Gross Annual Income *

Residency

Include Medicare Levy (2%)

2025–26 Tax Brackets (Resident)

Income Range	Rate	Tax on This Bracket
$0 – $18,200	0%	Nil
$18,201 – $45,000	19%	19c per $1 over $18,200
$45,001 – $120,000	32.5%	$5,092 + 32.5c per $1 over $45,000
$120,001 – $180,000	37%	$29,467 + 37c per $1 over $120,000
$180,001+	45%	$51,667 + 45c per $1 over $180,000

Enter your income and press Calculate Tax.

How It Works

This calculator uses the Australian Taxation Office (ATO) 2025-26 individual tax brackets to estimate your income tax. The rates are applied progressively — you only pay the higher rate on income above each threshold.

The calculation also includes the Medicare Levy (2% of taxable income for most taxpayers) and the Low Income Tax Offset (LITO), which provides up to $700 in tax reduction for incomes below $66,667.

Your effective tax rate is your total tax divided by your gross income — this shows what percentage of your total income actually goes to tax, which is always lower than your marginal rate.

Frequently Asked Questions

What are the Australian tax brackets for 2025-26?

The 2025-26 tax brackets are: $0–$18,200 (0%), $18,201–$45,000 (19%), $45,001–$120,000 (32.5%), $120,001–$180,000 (37%), and $180,001+ (45%). These rates apply to Australian residents for tax purposes.

How much tax do I pay on $100,000 in Australia?

On a $100,000 taxable income in 2025-26, you would pay approximately $22,967 in income tax plus $2,000 Medicare levy, totalling about $24,967. Your take-home pay would be around $75,033 per year or $6,253 per month.

What is the Medicare levy and who pays it?

The Medicare levy is 2% of your taxable income, funding Australia's public healthcare system. Most taxpayers pay it, but there's a low-income threshold — singles earning under $26,000 pay a reduced rate or are fully exempt.

What is the Low Income Tax Offset (LITO)?

LITO reduces your tax by up to $700 for incomes up to $37,500. It phases out between $37,500 and $66,667. You don't need to claim it — the ATO applies it automatically when you lodge your tax return.

What is the difference between marginal and effective tax rate?

Your marginal rate is the tax rate on your next dollar of income (e.g., 32.5% if you earn between $45,001 and $120,000). Your effective rate is total tax divided by total income — it's always lower because the first $18,200 is tax-free.

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Last updated: April 2026

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