Australia Income Tax Calculator 2026-27
Calculate your Australian income tax for 2026-27 — 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. The tool treats the number as the amount tax is worked out on, with no deductions, super or salary packaging removed.
- 2
Choose a residency option. Resident, foreign resident and working holiday maker each use a different set of bands built into the tool, and only the resident option gets the offset and the Medicare levy.
- 3
Choose the Medicare levy setting: the full levy with the low-income phase-in, none, or the reduced option, which is a simple 1% of income above a lower mark.
- 4
Read the income tax line, which is after the offset, then the levy, the combined total and the effective rate on your income.
- 5
Remember that the figures are labelled 2026-27 and are fixed in the tool, so compare the output with your payslip or the ATO’s own calculators before relying on it.
Frequently asked questions
Which tax bands does the tool use for a resident?
It uses five bands labelled 2026-27: nil on income up to $18,200, 15% from $18,200 to $45,000, 30% from $45,000 to $135,000, 37% from $135,000 to $190,000 and 45% above $190,000. Each rate applies only to income within its band. These are the figures built into this tool, and Australian rules change each 1 July, the tool’s tables are not updated automatically, and the ATO is the authority on what applies to you.
How does the low income offset work in this tool?
For the resident option only, the offset is $700 up to $37,500 of income, then falls by 5 cents per dollar to $325 at $45,000, then by 1.5 cents per dollar until it reaches zero at $66,667. It is applied against the calculated tax and cannot push tax below zero. At $30,000 the tool computes $1,770 of tax and subtracts $700, leaving $1,070; at $50,000 the offset is $250.
What do the three Medicare settings do?
The full setting charges nothing up to $26,000, then 10 cents per dollar between $26,000 and $32,500, then 2% of the whole income. The reduced setting is a simplification in the code: 1% of your whole income once it is above $26,000. The no-levy setting applies nothing. Foreign residents and working holiday makers pay no levy in the tool whatever you choose. The tool does not check any exemption or reduction criteria.
How are foreign residents and working holiday makers handled?
The foreign resident option taxes income from the first dollar at 30% to $135,000, then 37% to $190,000 and 45% above that, with no threshold and no offset. The working holiday option taxes the first $45,000 at 15% and then 30% to $135,000, 37% to $190,000 and 45% above. At $80,000 these give $24,000 and $17,250 of tax, against $14,520 for a resident. These non-resident figures are the ones built into this tool and are not a substitute for the ATO’s own tables. The tool does not decide your residency; you choose the option.
Does the take-home figure match my payslip?
Not necessarily. The tool subtracts income tax and the levy from the single income figure you enter. It does not remove employee super contributions, student loan repayments, salary packaging, the surcharge for lacking private hospital cover, or tax already withheld in a different pattern. If the number you entered is a package that includes employer super, the tool is taxing money you never receive, so enter your cash salary.
Why does the effective rate differ from the top band rate?
The effective rate is total tax and levy divided by income. At $80,000 the tool shows $14,520 of tax and $1,600 of levy, $16,120 in total and 20.2% effective, even though the top band reached is 30%. Lower bands, the tax-free amount and the levy’s flat 2% all pull the average up or down from the marginal rate.
What is left out of the calculation?
Deductions, other offsets, super contributions, the Medicare levy surcharge, student debt repayments, tax on investment income and on capital gains, and any part-year residency are not modelled. The bands, the offset and the levy mark are the figures built into this tool. These rules change at least every 1 July, so treat the number as an estimate and have the ATO or a registered tax agent confirm it.
Australia income tax calculator — bands, offset, levy and take-home pay
The steps the tool runs through
The tool taxes each slice of income at the rate for its band, subtracts the low income offset for the resident option, adds a Medicare levy if you chose one, and reports what is left. The bands are the 2026-27 set built into this tool: nil to $18,200, 15% to $45,000, 30% to $135,000, 37% to $190,000 and 45% above. Take-home pay is simply your income minus tax and levy, with nothing else deducted.
Worked example: five incomes for a resident with the full levy
At $30,000 the tool computes $1,770 of tax, subtracts the $700 offset to reach $1,070, and adds $400 of levy from the phase-in. At $80,000 income tax is $14,520 and the levy $1,600, leaving $63,880. At $150,000 tax is $36,570 and the levy $3,000, leaving $110,430, an effective rate of 26.4%. The offset is $250 at $50,000 and nil from $66,667, so from $66,667 only the band rate applies.
| Income | Income tax after offset | Offset | Medicare levy | Take-home |
|---|---|---|---|---|
| $30,000 | $1,070 | $700 | $400 | $28,530 |
| $50,000 | $5,270 | $250 | $1,000 | $43,730 |
| $80,000 | $14,520 | $0 | $1,600 | $63,880 |
| $150,000 | $36,570 | $0 | $3,000 | $110,430 |
| $200,000 | $55,870 | $0 | $4,000 | $140,130 |
Worked example: the same $80,000 under the three residency options
A resident pays $14,520 of tax and $1,600 of levy, $16,120 in total. The foreign resident option has no tax-free amount and charges 30% from the first dollar, so $80,000 produces $24,000 of tax, a 30% effective rate, and a $56,000 result. The working holiday option charges 15% on the first $45,000 and 30% on the rest, giving $17,250 and a $62,750 result. Neither non-resident option applies a levy in this tool.
How the Medicare settings change the total
The full setting follows the shaded-in method built into the tool: 10 cents per dollar over $26,000 up to $32,500, then 2% of everything. At $30,000 that produces $400. The reduced setting is a simple 1% of income above $26,000, so $30,000 gives $300 and the take-home rises to $28,630. The levy is a flat share of income, which is why it accounts for a larger part of the total at modest incomes than at high ones.
What the number does not represent
It ignores deductions, other offsets, super, student debt repayments, the surcharge and tax on investment income. Australian rules change each 1 July (the 16% rate, for example, became 15% from 1 July 2026), the tool’s tables are not updated automatically, and the ATO or a registered tax agent is the authority. Use it to compare income levels and residency options, not to lodge a return.
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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 →