Income Tax Calculator Australia 2025-26

Australian income tax uses a progressive system — you pay a higher rate on higher portions of income, but only on that portion. The first $18,200 is tax-free. Then 19% on $18,201–$45,000, 32.5% on $45,001–$120,000, 37% on $120,001–$180,000, and 45% above $180,000. The 2% Medicare levy applies on top. Offsets like LITO reduce the total tax payable for lower-income earners.

The statutory tax-free threshold is $18,200 for 2025-26. However, with the Low Income Tax Offset (LITO), Australian residents effectively pay no tax until approximately $21,884. You can claim the tax-free threshold with one employer only (your primary employer). If you have a second job, it should be set up without the tax-free threshold to avoid a tax debt.

The Medicare Levy Surcharge (MLS) is an additional tax for high-income earners without private hospital cover. It applies at 1% for $93,000–$108,000 income, 1.25% for $108,001–$144,000, and 1.5% above $144,000. For couples and families, the income thresholds are higher. Taking out a private hospital insurance policy removes the MLS entirely. Many people save money by taking out a basic hospital policy rather than paying the surcharge.

On $100,000 gross income as an Australian resident in 2025-26: income tax is approximately $24,497 (using the bracket calculations), plus Medicare levy of $2,000 (2%), minus LITO of approximately $0 (phases out by $66,667). Total estimated tax: approximately $26,497. Take-home pay: approximately $73,503, or $6,125/month. Use our calculator above for your exact figures including salary sacrifice and HECS.

The Australian financial year runs from 1 July to 30 June. The 2025-26 tax year covers 1 July 2025 to 30 June 2026. Tax returns for this year can be lodged from 1 July 2026 (through myTax or a registered tax agent). The lodgement deadline for self-lodgers is 31 October 2026. If using a tax agent, you may have an extended deadline.

HECS/HELP repayments are compulsory once your repayment income exceeds $54,435 for 2025-26. The repayment rate starts at 1% and increases to 10% for incomes over $151,201. Repayments are automatically withheld through PAYG if you tell your employer you have a HECS debt. They are calculated on your total repayment income (income plus reportable fringe benefits plus net investment losses), not just your salary.

Yes — legally, through: salary sacrificing into superannuation (reduces assessable income), claiming all legitimate work-related deductions (WFH, vehicle, equipment, education), negative gearing on investment properties (losses offset income), timing of income and deductions, and making personal super contributions (may be tax deductible if claiming a personal super deduction notice). Always keep records and consult a registered tax agent for personalised advice.