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🇦🇺 Australian Income Tax Calculator 2025-26

Free ATO income tax calculator — estimate your Australian income tax, Medicare levy, LITO offset and take-home pay for 2025-26. Updated for the latest tax brackets.

Australian Income Tax 2025-26
Stage 3 tax cuts are reflected in this calculator. New brackets apply from 1 July 2024.
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Estimated Annual Take-Home Pay
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Gross Income
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Total Tax Payable
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Income Tax
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LITO Offset
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Medicare Levy
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Effective Tax Rate
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Tax as % of income 0%
Pay Period Breakdown
Monthly Take-Home
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Fortnightly
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Tax BracketTaxable AmountRateTax

2025-26 Australian Tax Brackets

These are the income tax rates for Australian residents for the 2025-26 financial year (1 July 2025 – 30 June 2026). The ATO tax brackets below apply to residents using the tax-free threshold:

Taxable IncomeRateTax on This Band
$0 – $18,200NilNil
$18,201 – $45,00019%19c for each $1 over $18,200
$45,001 – $135,00032.5%$5,092 + 32.5c for each $1 over $45,000
$135,001 – $190,00037%$34,342 + 37c for each $1 over $135,000
$190,001 +45%$54,682 + 45c for each $1 over $190,000

Plus 2% Medicare levy (with low-income phase-in). The tax-free threshold is $18,200. LITO reduces tax payable for incomes below $66,667.

What Is Included in This Calculation?

  • Income Tax: Calculated on taxable income using 2024-25 ATO brackets.
  • Low Income Tax Offset (LITO): Up to $700 offset for incomes up to $37,500, phasing out at $66,667.
  • Medicare Levy (2%): Applied to taxable income (with phase-in for very low incomes below $26,000).
  • Not included: Superannuation contributions (employer 11.5% SGC), HELP/HECS debt, private health rebate, FHB schemes, or state taxes.

Stage 3 Tax Cuts (from 1 July 2024)

The Australian Government revised the Stage 3 tax cuts. Key changes from 1 July 2024:

  • The 19% tax rate cut from $18,201–$45,000 (previously $18,201–$37,000 at 19%)
  • The 32.5% rate now applies up to $135,000 (previously $120,000)
  • The 37% rate now applies $135,001–$190,000 (previously $120,001–$180,000)
  • The LITO was increased to $700 and extended to higher incomes
  • Lower income earners benefit significantly from these changes

Frequently Asked Questions

The tax-free threshold in Australia for 2024-25 is $18,200. Australian residents who earn less than this amount pay no income tax. You can claim the tax-free threshold from your employer on your Tax File Number declaration.
The Medicare levy is 2% of your taxable income for most Australian residents. If your income is below $24,276 you pay no Medicare levy. Between $24,276 and $30,345, a reduced levy applies. You may be exempt if you have a foreign resident exemption or a Medicare levy reduction certificate.
The Low Income Tax Offset (LITO) is a tax offset of up to $700 available to Australian residents earning up to $37,500. It phases out between $37,501–$45,000 (at 5c per dollar) and then between $45,001–$66,667 (at 1.5c per dollar). It reduces the tax you pay but cannot create a refund on its own.
No. This calculator focuses on income tax and Medicare levy. Your employer must also pay the Superannuation Guarantee (SGC) of 11.5% (2024-25) on top of your salary into your super fund. This is separate to your take-home pay calculation.
The highest marginal income tax rate is 45%, which applies to taxable income over $190,000. When you add the 2% Medicare levy, the effective top rate is 47%. High earners may also be subject to the Medicare Levy Surcharge (1–1.5%) if they don't hold private hospital cover.