Australia Income Tax Calculator 2024-25

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.