Australian Income Tax Calculator 2026
Last verified · Methodology
Enter your taxable income and residency status to calculate Australian income tax using ATO 2025/26 brackets. Includes Medicare Levy and Low Income Tax Offset (LITO). Shows effective rate, marginal rate, and total deductions.
Income Tax Details
ATO Tax Brackets 2025/26 (Resident)
Marginal rate of 30.0% applies to income above $45,000.
Figures use ATO 2025/26 resident rates. Does not include HECS-HELP repayments, Medicare Levy Surcharge, or state taxes. Non-resident rates are simplified. Always lodge an annual tax return with the ATO. Does not constitute tax advice.
| Taxable Income | Income Tax | Medicare Levy | Total Tax | Effective Rate |
|---|---|---|---|---|
| A$30,000 | A$1,417 | A$600 | A$2,017 | 6.7% |
| A$60,000 | A$11,067 | A$1,200 | A$12,267 | 20.4% |
| A$90,000 | A$19,717 | A$1,800 | A$21,517 | 23.9% |
| A$120,000 | A$29,767 | A$2,400 | A$32,167 | 26.8% |
| A$180,000 | A$51,667 | A$3,600 | A$55,267 | 30.7% |
| A$250,000 | A$85,667 | A$5,000 | A$90,667 | 36.3% |
The Australian income tax brackets for resident individuals in 2025/26 are: 0% on taxable income from $0 to $18,200; 19% on $18,201 to $45,000; 30% on $45,001 to $135,000; 37% on $135,001 to $190,000; and 45% on income over $190,000. These are the marginal rates that apply to the income within each bracket, not to your total income. The 2% Medicare Levy is added separately on top of income tax.
Your marginal tax rate is the rate that applies to your last (highest) dollar of income. Your effective rate is the total tax you pay divided by your total taxable income. For example, on $90,000 taxable income: total income tax is $19,717 giving an effective rate of 21.9%, but the marginal rate on that top dollar is 30%. The marginal rate tells you the tax cost of earning one more dollar; the effective rate tells you what proportion of your total income goes to tax.
The Low Income Tax Offset (LITO) is a non-refundable tax offset that reduces the amount of income tax payable for lower-income earners. For 2025/26 the maximum LITO is $700 for taxable incomes up to $37,500. It phases out at 5 cents per dollar from $37,500 to $45,000, then at 1.5 cents per dollar from $45,000 to $66,667. Above $66,667 no LITO applies. The LITO is automatically factored in by employers through PAYG withholding tables.
Australian residents are taxed on worldwide income and have access to the tax-free threshold, LITO, and the resident rate schedule. Non-residents are taxed only on Australian-source income at different rates: 32.5% from $1 to $135,000, 37% from $135,001 to $190,000, and 45% above $190,000. Non-residents do not access the tax-free threshold or LITO but also do not pay the Medicare Levy. Temporary residents may have different treatment depending on visa type and ATO ruling.
Taxable income is your total assessable income minus allowable deductions. Assessable income includes salary and wages, investment income (interest, dividends, rent), business income, and capital gains (net). Allowable deductions include work-related expenses, self-education expenses related to current employment, investment expenses, and charitable donations. Your employer reports gross salary to the ATO; deductions are claimed in your annual tax return. Salary sacrifice contributions to super reduce your reportable employer super contributions but not necessarily your taxable income in the same way.
The tax-free threshold is $18,200 of taxable income. As an Australian resident, you pay no income tax on the first $18,200 you earn. You claim the threshold by selecting it on your TFN declaration when you start a job. If you hold multiple jobs you should only claim the threshold with one employer. Claiming with both employers results in under-withholding and a tax debt at year end. The LITO effectively extends the threshold to approximately $21,885 for most employees.