Income Tax Calculator Australia 2026 — Take-Home Pay
✅ Fact checked|🗓️ Updated: April 2026|✍️ FinSight Editorial Team|⚡ Free to use — no signup required
✓ REVIEWEDBy FinSight Editorial Team
Updated April 2026
General information only — not financial advice
2025–26 Australian Tax Rates
Australia uses a progressive tax system — the more you earn, the higher the rate on each additional dollar. The rates below apply to Australian residents for the 2025–26 financial year.
Taxable Income
Tax on this income
$0 – $18,200
Nil
$18,201 – $45,000
19c for each $1 over $18,200
$45,001 – $120,000
$5,092 + 32.5c for each $1 over $45,000
$120,001 – $180,000
$29,467 + 37c for each $1 over $120,000
$180,001+
$51,667 + 45c for each $1 over $180,000
Plus Medicare Levy of 2% applies to most residents. Low Income Tax Offset (LITO) of up to $700 reduces tax for lower earners.
Disclaimer: This calculator provides estimates only. Tax rules are complex and individual circumstances vary. Always consult a registered tax agent for personalised advice.
❓ Frequently Asked Questions
How much tax do I pay on my salary in Australia?+
Australia uses a progressive tax system. For 2025-26: no tax on income up to $18,200; 19% on $18,201–$45,000; 32.5% on $45,001–$120,000; 37% on $120,001–$180,000; and 45% on income over $180,000. The Medicare Levy of 2% also applies to most residents.
What is the tax-free threshold in Australia 2025-26?+
The tax-free threshold is $18,200 for Australian residents in the 2025-26 financial year. This means you pay no income tax on the first $18,200 of your income. The Low Income Tax Offset (LITO) of up to $700 can further reduce your tax payable.
What is the Medicare Levy?+
The Medicare Levy is an additional 2% charged on top of income tax for most Australian residents. It funds the Medicare healthcare system. Some people are exempt, such as those on low incomes or those with a Medicare Levy Exemption Certificate.
What is the LITO (Low Income Tax Offset)?+
The Low Income Tax Offset (LITO) reduces the amount of tax you pay if you earn under $66,667. The maximum offset is $700 for incomes up to $37,500. It phases out gradually between $37,500 and $66,667. It directly reduces your tax bill.
How often do I need to lodge a tax return in Australia?+
Most Australians lodge one tax return per year covering the financial year from 1 July to 30 June. The due date for self-lodging is 31 October. If you use a registered tax agent you may get an extension. You are required to lodge even if no tax is owed.
What is the difference between gross salary and take-home pay?+
Gross salary is your income before any deductions. Take-home pay (net pay) is what you actually receive after income tax, Medicare levy, and any HECS/HELP repayments are deducted via PAYG withholding. Use our Income Tax Calculator to see your exact take-home.