Australia Income Tax Calculator 2026-27

Work out the income tax and Medicare levy an Australian taxpayer pays on a year's income. Choose 2026-27 to see pay from 1 July 2026, when the second tax bracket drops from 16% to 15%, or 2025-26 for the return you lodge this tax time. The low income tax offset is applied automatically for residents.

How to use this tool

1. Pick the income year.
2. Enter your total income for the year — salary, wages, interest and other assessable income.
3. Enter deductions such as work expenses and donations.
4. Choose resident or foreign resident.

Formula

Tax = Σ(rate × income in bracket) − LITO + Medicare levy (2% of taxable income)

Resident brackets for 2026-27: nil to $18,200, 15% to $45,000, 30% to $135,000, 37% to $190,000 and 45% above (2025-26 used 16% in the second bracket). The low income tax offset is $700 up to $37,500, falling by 5c per dollar to $45,000 and 1.5c per dollar until it runs out at $66,667. Using the current legislated $28,011 threshold, no Medicare levy is paid below it; above it the levy phases in at 10c per dollar until it reaches the full 2%.

Example

A resident with $80,000 of taxable income in 2026-27 pays 15% on $26,800 ($4,020) plus 30% on $35,000 ($10,500), so $14,520 income tax. Income is too high for the low income tax offset. The Medicare levy is 2% × $80,000 = $1,600, giving $16,120 in total, an average rate of 20.15%. In 2025-26 the same income attracted $14,788 of income tax — $268 more.