Australia Income Tax Calculator 2024-25
Calculate your Australian income tax for 2024/25 — ATO tax brackets, Medicare levy, Low Income Tax Offset (LITO), and take-home pay.
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How to use this calculator
- 1
Enter your annual taxable income in Australian dollars.
- 2
Select your residency status — Australian residents get a $18,200 tax-free threshold; foreign residents do not.
- 3
Choose your Medicare levy situation — most residents pay 2%, but low earners pay a reduced amount.
- 4
The Low Income Tax Offset (LITO) of up to $700 automatically reduces tax for incomes under $66,667.
- 5
Results show your income tax, Medicare levy, and estimated take-home pay.
Frequently asked questions
What are the 2024/25 Australian income tax brackets?
For Australian residents in 2024/25: 0% on the first $18,200 (tax-free threshold); 19% on $18,201–$45,000; 32.5% on $45,001–$120,000; 37% on $120,001–$180,000; and 45% on income above $180,000. These marginal rates apply only to the income within each band. The Low Income Tax Offset can further reduce tax for incomes under $66,667.
What is the Medicare levy and who pays it?
The Medicare levy is 2% of taxable income for most Australian residents and funds the public healthcare system (Medicare). Low earners with income below approximately $26,000 are exempt, with a phase-in between $26,000 and $32,500. Foreign residents and certain visa holders are generally exempt. Some people with private hospital cover can also avoid the Medicare Levy Surcharge (MLS) if their income exceeds $93,000.
What is the Low Income Tax Offset (LITO)?
The LITO is a non-refundable tax offset (not a deduction) of up to $700 for Australian residents with taxable income under $66,667. The full $700 applies to incomes up to $37,500. It then reduces at 5 cents per dollar between $37,500 and $45,000, and at 1.5 cents per dollar between $45,000 and $66,667. The LMITO (Low and Middle Income Tax Offset) ended after the 2021/22 income year.
How are foreign residents taxed in Australia?
Foreign residents for tax purposes do not get the $18,200 tax-free threshold. They pay 32.5% on the first $120,000 of Australian-sourced income, 37% on $120,001–$180,000, and 45% above $180,000. They are also generally not eligible for the LITO or the Medicare levy. Working holiday makers (417 and 462 visas) have a special rate of 15% on the first $45,000.
Australia Income Tax Calculator 2024-25 — ATO Tax Brackets & Take-Home Pay
How Australian income tax works in 2024-25
Australia uses a progressive income tax system where higher income attracts higher marginal rates. For the 2024-25 financial year, the Australian Taxation Office (ATO) applies rates from 0% (on the first $18,200 tax-free threshold) up to 45% on income above $180,000. In addition to income tax, most residents pay the Medicare levy of 2%, which funds the public healthcare system. The Low Income Tax Offset (LITO) of up to $700 reduces the tax burden for lower earners. Note that the Low and Middle Income Tax Offset (LMITO) was abolished after 2021/22 and is no longer available. Your employer withholds tax from your pay under the Pay As You Go (PAYG) withholding system, with any overpayment or underpayment settled when you lodge your annual tax return.
Residents vs foreign residents: key tax differences
Your residency status for tax purposes significantly affects your Australian tax liability. Australian tax residents benefit from the $18,200 tax-free threshold, the Low Income Tax Offset, and standard progressive rates. Foreign residents for tax purposes have no tax-free threshold and pay 32.5% from the first dollar of Australian income — making their effective rate much higher at lower income levels. Working holiday makers on 417 or 462 visas pay 15% on their first $45,000, then standard resident rates above that. Residency for tax is determined by factors such as physical presence, domicile, and the 183-day rule — it is separate from visa status or citizenship. If you are unsure of your tax residency status, consult a registered tax agent or refer to the ATO website.
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Results are estimates for informational purposes only and do not constitute professional financial, medical, legal, or technical advice. Read full disclaimer →