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Australian Income Tax Calculator 2026–27

Enter your taxable income to see income tax bracket by bracket for 2026–27. Resident rates: nil to $18,200, 15% to $45,000, 30% to $135,000, 37% to $190,000 and 45% above. The Medicare levy and low income tax offset are applied automatically.

Updated 2026-10-03 · ATO and official government rates

Income tax + Medicare levy$19,32021.5% average rate · 32% marginal · 2026–27
BracketRateTax
$0 – $18,2000%$0
$18,200 – $45,00015%$4,020
$45,000 – $135,00030%$13,500
Medicare levy2%$1,800
Total$19,320
Kept: $70,680 (78.5%)Income tax: $17,520 (19.5%)Medicare levy: $1,800 (2.0%)
  • Kept $70,680 78.5%
  • Income tax $17,520 19.5%
  • Medicare levy $1,800 2.0%

Your result is ready

Related

How to calculate income tax in Australia, step by step

Australian income tax is worked out on taxable income for the whole income year, not on each pay. The calculation has five steps. The ATO does exactly the same thing when it processes your return.

  • Add up assessable income: salary and wages, most Centrelink payments, interest, rent, dividends, business income and capital gains.
  • Subtract deductions, such as work-related expenses, to get taxable income.
  • Apply the resident rates to taxable income. Each rate applies only to the dollars inside its band.
  • Subtract non-refundable tax offsets, such as the low income tax offset (LITO). They can reduce tax to nil but not below nil.
  • Add the 2% Medicare levy. If you have a HELP or other study loan, the compulsory repayment is added on top.

Worked example: $58,000 salary in 2026–27

Mia earns $58,000, receives $600 of bank interest and claims $1,400 of work-related deductions. Her taxable income is $57,200. The first $18,200 is tax-free. The next $26,800 is taxed at 15%, which comes to $4,020. The remaining $12,200 is taxed at 30%.

Her LITO is $142, the levy is $1,144, and her total is $8,682, an average rate of 15.2% on taxable income. Without the deductions the bill would be $469 higher. That is her 33.5% marginal rate applied to $1,400: 30% tax, the 2% levy and 1.5c of LITO lost per dollar.

StepAmount
Taxable income$57,200
Tax on the first $45,000$4,020
Tax on $12,200 at 30%$3,660
Less low income tax offset−$142
Medicare levy$1,144
Total income tax and levy$8,682

Income tax rates in Australia as a quick formula

The ATO publishes each bracket as a fixed amount plus a rate on the excess. For 2026–27 that means:

  • $18,201 to $45,000: 15c for each $1 over $18,200.
  • $45,001 to $135,000: $4,020 plus 30c for each $1 over $45,000.
  • $135,001 to $190,000: $31,020 plus 37c for each $1 over $135,000.
  • $190,001 and over: $51,370 plus 45c for each $1 over $190,000.

The low income tax offset at different incomes

According to the ATO, you do not need to do anything to claim the LITO except lodge your return: it is worked out for you. It is worth $700 up to $37,500. It then falls by 5c per dollar to $45,000, and by 1.5c per dollar after that, until it runs out at $66,667. Together with the tax-free threshold, it means a resident pays no income tax up to about $22,866 in 2026–27.

Taxable incomeTax before offsetLITOIncome tax payable
$30,000$1,770$700$1,070
$40,000$3,270$575$2,695
$50,000$5,520$250$5,270
$60,000$8,520$100$8,420

Residents, foreign residents and working holiday makers

Your tax residency decides which rates apply, and it is not the same as your visa status. The ATO applies four tests: the resides test, the domicile test, the 183-day test and the Commonwealth superannuation test. Meeting any one of them makes you a resident. Foreign residents pay 30% from the first dollar, get no tax-free threshold or LITO, and do not pay the Medicare levy. Working holiday makers pay 15% up to $45,000.

If you stop being a resident part-way through the year, the ATO says you are still taxed at resident rates for that year, with a tax-free threshold pro-rated for the months you were a resident, and foreign income earned after you left no longer goes in your return. This calculator assumes full-year residency, so a part-year resident should treat its result as a rough guide only.

Frequently asked questions

What are the Australian tax brackets for 2026–27?

For residents: nil to $18,200, 15% to $45,000, 30% to $135,000, 37% to $190,000 and 45% above. The Medicare levy of 2% is added on top for most people.

Is income tax calculated on gross pay or taxable income?

On taxable income: your assessable income for the whole year minus allowable deductions. Salary sacrificed into super under an effective arrangement is also excluded from taxable income.

How do I calculate tax on a second job?

Add both incomes together and run the total through the calculator. Tax is assessed on your combined taxable income, which is why the ATO asks you to claim the tax-free threshold from only one payer.

Does the income tax calculator include HELP repayments?

No, it shows income tax and the Medicare levy only. HELP repayments start at $69,528 of repayment income in 2026–27. Use the pay calculator or the HECS-HELP calculator to include them.

How much income can I earn before paying tax in Australia?

$18,200 is the tax-free threshold. Because the low income tax offset cancels the tax on the next band, a full-year resident pays no income tax up to about $22,866 in 2026–27. The Medicare levy can still apply above $28,011.

Sources

Figures are taken from official government publications and were last reviewed on 2026-10-03.

  1. ATO: Tax rates – Australian resident (resident tax rates 2026–27 back to 1983–84)
  2. ATO: Tax rates – foreign resident (Foreign resident tax rates 2025–26)
  3. ATO: Tax rates – working holiday makers (Working holiday maker tax rates 2025–26)
  4. ATO: Medicare levy reduction for low-income earners (Table: Medicare levy thresholds for a single individual, 2025–26)
  5. ATO: Medicare levy reduction – family income (family taxable income thresholds 2025–26, +$4,338 per dependent child)
  6. ATO: Medicare levy surcharge income, thresholds and rates (MLS income thresholds and rates for 2026–27 and 2025–26)
  7. ATO: Low income tax offset (worked out automatically when you lodge)
  8. ATO: Seniors and pensioners tax offset (SAPTO rates and rebate income thresholds for 2025–26; 12.5c per $1 reduction)
  9. ATO: Study and training loan repayment thresholds and rates (Table 1: 2026–27, Table 2: 2025–26)
  10. ATO: Schedule 1 (NAT 1004) – Using a formula (x = whole dollars + 99c; round to nearest dollar, 50c up)
  11. ATO: Personal income tax – new tax cuts for every Australian taxpayer (2026–27 SAPTO thresholds)
  12. ATO: Schedule 15 – Tax table for working holiday makers (Table A: rates for 2026–27, payments from 1 July 2026)
  13. ATO: Schedule 1 – Statement of formulas for calculating amounts to be withheld (NAT 1004), payments from 1 July 2026 – weekly coefficients
  14. ATO: Schedule 1 (NAT 1004) – Withholding amounts sample data, weekly (from 1 July 2026)
  15. ATO: Schedule 8 – Statement of formulas for calculating study and training support loans components (NAT 3539), payments from 1 July 2026
  16. ATO: Key super rates and thresholds – Contributions caps (Table 1.1 concessional, Table 4 non-concessional)
  17. ATO: Understanding concessional and non-concessional contributions (concessional contributions taxed in the fund at 15%)
  18. ATO: Key super rates and thresholds – Division 293 tax (Table 7: $250,000 threshold, 15% rate)
  19. ATO: Key super rates and thresholds – Super guarantee (Table 21 SG %, Tables 23–24 maximum contribution base)
  20. ATO: Key super rates and thresholds – Government contributions (Table 25 co-contribution thresholds; LISTO)
  21. ATO: Low income super tax offset (15% of concessional contributions, max $500, income $37,000 or less)
  22. ATO: Key super rates and thresholds – Transfer balance cap (Table 26)
  23. ATO: Key super rates and thresholds – Payments from super (Table 12 preservation age)
  24. ATO: Key super rates and thresholds – Employment termination payments (Table 17 ETP cap, Table 20 genuine redundancy limits)
  25. ATO: How ETP components are taxed (17%/32% incl. Medicare; $180,000 whole-of-income cap; 45% + 2% above cap)
  26. ATO: How GST works (10% rate)
  27. ATO: Registering for GST ($75,000 / $150,000 non-profit; taxi or limousine travel incl. ride-sourcing regardless of turnover)
  28. ATO: CGT discount (50% individuals and trusts, 33.33% complying super funds, 12-month ownership)
  29. ATO: Tax reform – Reforming negative gearing and capital gains tax (applies from 1 July 2027)
  30. ATO: Changes to company tax rates (25% base rate entity, $50m aggregated turnover, 2021–22 and future years)
  31. ATO: Company tax rates 2025–26
  32. ATO: Instant asset write-off for eligible businesses (Table 1: $20,000, turnover under $10 million)
  33. ATO Small business newsroom: $20,000 instant asset write-off here to stay (permanent from 1 July 2026)
  34. ATO: Small business income tax offset (16%, max $1,000, turnover under $5 million, 2021–22 onwards)
  35. Fair Work Ombudsman: Minimum wage increase starts today (1 July 2025 – $948.00/week, $24.95/hour, casual $31.19)
  36. Fair Work Ombudsman: Minimum wage increase starts today (1 July 2026 – $1,004.90/week, $26.44/hour, casual $33.05)
  37. Fair Work Commission: Annual Wage Review 2026 ([2026] FWCFB 3500, announced 2 June 2026)
  38. ATO: Tax for employees (TFN declaration, no tax-free threshold for a second job, income statements finalised by 14 July)
  39. ATO: Your tax residency (resides, domicile, 183-day and Commonwealth superannuation tests)