๐Ÿ‡ฆ๐Ÿ‡บ Australia

Income Tax Calculator Australia โ€” FY 2025-26

Calculate your take-home pay after income tax, Medicare levy, and HELP repayment. Stage 3 tax cuts applied (16% and 30% rates). Compare with pre-Stage 3 rates. See your pay per week, fortnight, or month. Updated for FY 2025-26.

$
Your total annual salary before tax
Determines your tax rates and eligibility for offsets
Avoids Medicare Levy Surcharge if income > $93,000
Additional repayment withheld from pay
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How to Use This Calculator

Tax Breakdown tab

Enter your annual gross salary, select your residency status (Australian Resident, Non-Resident, or Working Holiday Maker), and indicate whether you have private hospital cover and a HELP/HECS debt. The calculator shows your take-home pay, total tax, effective tax rate, Medicare levy, and LITO benefit.

Pay Period tab

Same inputs as Tax Breakdown, plus your pay frequency (Weekly, Fortnightly, or Monthly). See your net pay per pay cycle, tax withheld, employer super contribution (12% SG), and HELP repayment per period if applicable.

Compare Years tab

Enter your salary to compare tax under the current Stage 3 rates (FY 2024-25 and FY 2025-26) against the old pre-Stage 3 rates (19% and 32.5%). See your annual saving from the Stage 3 tax cuts.

Share your result

All inputs are encoded in the URL. Click Share to send your exact calculation to your accountant or colleagues.

The Formula

Income Tax (Resident, FY 2025-26):
$0 – $18,200: Nil
$18,201 – $45,000: 16 cents per $1 over $18,200
$45,001 – $135,000: $4,288 + 30 cents per $1 over $45,000
$135,001 – $190,000: $31,288 + 37 cents per $1 over $135,000
$190,001+: $51,638 + 45 cents per $1 over $190,000

LITO (Low Income Tax Offset):
Income ≤ $37,500: $700
$37,501 – $45,000: $700 − 5c per $1 over $37,500
$45,001 – $66,667: $325 − 1.5c per $1 over $45,000
Above $66,667: $0

Medicare Levy:
2% of taxable income (reduced if income $26,001–$32,500; exempt if ≤ $26,000)

Take-Home Pay:
Take-Home = Gross Salary − Income Tax − Medicare Levy − MLS − HELP Repayment

Worked Example

Salary of $90,000 — Australian Resident, has private health, no HELP

Step 1: Income tax calculation

$0 – $18,200 at 0%$0
$18,201 – $45,000 at 16%$4,288
$45,001 – $90,000 at 30%$13,500
Gross tax$17,788

Step 2: Offsets and levies

LITO$0 (income above $66,667)
Medicare levy (2%)$1,800
Medicare Levy Surcharge$0 (has private health)

Step 3: Final result

Total tax$19,588
Take-home pay$70,412
Effective tax rate21.8%
Employer super (12%)$10,800 (on top of salary)

Verdict: On a $90,000 salary, you take home $70,412 after tax and Medicare. Your employer pays an additional $10,800 into your super. Under the old pre-Stage 3 rates, you would have paid $21,517 in tax — the Stage 3 cuts save you $1,929 per year.

Tax Rates at a Glance (FY 2025-26)

Resident tax brackets (Stage 3)
Taxable Income Rate Tax on Bracket
$0 – $18,200 0% $0
$18,201 – $45,000 16% $4,288
$45,001 – $135,000 30% $27,000
$135,001 – $190,000 37% $20,350
$190,001+ 45% 45c per $1

Stage 3 tax cuts effective 1 July 2024. 19% → 16%, 32.5% → 30%. LMITO expired after FY 2022-23.

Non-resident tax brackets
Taxable Income Rate
$0 – $135,000 32.5%
$135,001 – $190,000 37%
$190,001+ 45%

No tax-free threshold. No LITO. No Medicare levy.

Medicare levy and surcharge
Component Rate Condition
Medicare levy 2% Of taxable income
Low-income exemption 0% Income ≤ $26,000
Phase-in range 10% of excess $26,001 – $32,500
MLS Tier 1 1.0% $93,001 – $108,000 (no private health)
MLS Tier 2 1.25% $108,001 – $144,000
MLS Tier 3 1.5% $144,001+
LITO (Low Income Tax Offset)
Taxable Income LITO Amount
Up to $37,500 $700
$37,501 – $45,000 $700 − 5c per $1 over $37,500
$45,001 – $66,667 $325 − 1.5c per $1 over $45,000
Above $66,667 $0

LITO applies to residents only. Applied automatically at tax time.

FAQ

The Stage 3 tax cuts took effect on 1 July 2024. The 19% tax rate was reduced to 16%, and the 32.5% rate was reduced to 30%. The $120,000 threshold was raised to $135,000, and the $180,000 threshold was raised to $190,000. These changes benefit all taxpayers earning above the $18,200 tax-free threshold. The cuts apply to FY 2024-25 and FY 2025-26 onwards.
The Medicare Levy Surcharge (MLS) is an additional charge of 1% to 1.5% on top of the standard 2% Medicare levy. It applies to singles earning above $93,000 who do not have private hospital cover. The rates are: 1.0% for $93,001–$108,000, 1.25% for $108,001–$144,000, and 1.5% for $144,001 and above. Getting private hospital cover exempts you from the MLS, which often costs less than the surcharge itself.
From FY 2025-26, HELP repayments use a marginal rate system instead of the old threshold-based system. Repayments start when your repayment income exceeds approximately $67,000. The rate is applied only to the income above each threshold (similar to tax brackets), not your entire income. The maximum rate is 10% of your total income. HELP repayments are withheld by your employer through the PAYG system and reconciled at tax time. They reduce your HELP debt, not extra tax.
Yes. Working holiday makers (subclass 417 and 462 visa holders) pay a flat 15% on the first $45,000 of income. Above $45,000, standard resident rates apply: 30% to $135,000, 37% to $190,000, and 45% above. WHMs do not receive the tax-free threshold or LITO. Employers registered with the ATO as WHM employers must withhold tax at these special rates.
Employer super contributions (Superannuation Guarantee, currently 12%) are taxed at a concessional rate of 15% inside your super fund, not at your marginal tax rate. This makes super a tax-effective savings vehicle. For example, if your marginal rate is 30%, the tax saving on super contributions is 15% (30% minus 15%). Note that if your income plus super exceeds $250,000, Division 293 applies an extra 15% tax on contributions, making the effective rate 30%.

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