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Australia Income Tax Calculator 2026-27

Calculate Australian income tax for 2026-27 or 2025-26, with the Medicare levy and Low Income Tax Offset, for employees, contractors and sole traders.

Your numbers

Amounts are in Australian dollars (AUD).

$

Salary plus sole trader or contractor profit, minus deductions.

Low-income earners pay a reduced levy or none; this isn't modelled here.

$

From payment summaries or PAYG instalments. Shows the likely refund or amount owing.

Total tax and Medicare levy

A$19,320

Income tax after offsets
A$17,520
Medicare levy
A$1,800
Low Income Tax Offset
A$0
Take-home for the year
A$70,680
Take-home per month
A$5,890
Effective rate
21.5%
Marginal rate (plus Medicare)
32%
Refund (−) or amount owing (+)
n/a
The math behind it

  1. Income tax before offsets

    A$4,020 + 30% × (A$90,000 − A$45,000)equalsA$17,520

  2. Medicare levy

    A$90,000 × 2%equalsA$1,800

  3. Total

    A$17,520 + A$1,800equalsA$19,320

Australia taxes residents on a progressive scale with an $18,200 tax-free threshold, plus a 2% Medicare levy. From 1 July 2026 the rate on income between $18,201 and $45,000 fell from 16% to 15%, and it's legislated to fall to 14% from 1 July 2027. This calculator applies the 2026-27 rates, or the 2025-26 rates for the return you may be lodging now, including the Low Income Tax Offset. Rates checked September 2026.

Figures checked against the ATO's published resident tax rates (updated 13 August 2026). Prices and rules change, so confirm with the official source before relying on them.

How it works

2026-27 resident rates: nil up to $18,200; 15% from $18,201 to $45,000; $4,020 plus 30% from $45,001 to $135,000; $31,020 plus 37% up to $190,000; and $51,370 plus 45% above that. Only the income inside each bracket is taxed at that bracket's rate.

The Low Income Tax Offset reduces tax by up to $700. It starts falling by 5 cents per dollar above $37,500 and 1.5 cents per dollar above $45,000, reaching nil at about $66,667. It can reduce your tax to zero but isn't paid out as cash.

The Medicare levy is 2% of taxable income for most residents. People on low incomes pay a reduced levy or none, and some higher earners without private hospital cover also pay the Medicare levy surcharge, which isn't included here.

Contractors and sole traders don't have tax withheld from most payments, so set money aside from each invoice. Once your tax bill passes a threshold, the ATO puts you into quarterly PAYG instalments to spread the payments across the year.

A worked example

On a taxable income of $90,000 in 2026-27, income tax is $4,020 plus 30% of $45,000, which is $17,520. The Medicare levy adds $1,800, for $19,320 in total. That leaves $70,680 a year, or $5,890 a month, an effective rate of 21.5%. In 2025-26 the same income paid $268 more.

Questions people ask

What are the Australian tax rates for 2026-27?

For residents: nil up to $18,200, 15% to $45,000, 30% to $135,000, 37% to $190,000 and 45% above $190,000, plus the 2% Medicare levy. Only the 15% rate changed, down from 16%.

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

In 2026-27, income tax on $100,000 is $20,520 and the Medicare levy is $2,000, a total of $22,520, leaving $77,480 before other deductions such as HELP repayments.

Do sole traders pay the same tax rates?

Yes. A sole trader's business profit is added to any other income and taxed at the individual rates above. The difference is that no tax is withheld, so you pay through your return and PAYG instalments.

When is my 2025-26 tax return due?

31 October 2026 if you lodge it yourself. If you use a registered tax agent and are on their list before that date, you'll usually have longer.

Does this work for non-residents or working holiday makers?

No. Foreign residents have no tax-free threshold and a different scale, and working holiday makers have their own rates. This calculator is for Australian residents for tax purposes.

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