Australian Income Tax Calculator (FY 2025–26)
Estimate your annual income tax in Australia using current resident and non-resident tax rates. You can also include Medicare levy and compare tax against PAYG withheld.
This calculator provides an estimate only and does not include every offset, surcharge, deduction, or individual circumstance. Always confirm with the ATO or a registered tax professional.
How this Australian tax calculator works
This tool estimates your annual tax based on taxable income and residency status. It uses the resident tax rates that apply from 1 July 2024 onward (and still in effect for 2025–26), plus optional Medicare levy for residents.
It then shows:
- Estimated income tax
- Estimated Medicare levy
- Total estimated tax
- Net annual, monthly, fortnightly, and weekly income
- Effective tax rate and marginal tax rate
- Potential refund or amount owing if you enter PAYG tax withheld
Australian income tax brackets (resident rates)
| Taxable income | Tax on this income |
|---|---|
| $0 – $18,200 | Nil |
| $18,201 – $45,000 | 16% of amount over $18,200 |
| $45,001 – $135,000 | $4,288 + 30% of amount over $45,000 |
| $135,001 – $190,000 | $31,288 + 37% of amount over $135,000 |
| $190,001 and over | $51,638 + 45% of amount over $190,000 |
Non-resident tax rates (summary)
| Taxable income | Tax on this income |
|---|---|
| $0 – $135,000 | 30% of taxable income |
| $135,001 – $190,000 | $40,500 + 37% of amount over $135,000 |
| $190,001 and over | $60,850 + 45% of amount over $190,000 |
Medicare levy in this estimate
For residents, this calculator applies a standard 2% Medicare levy with a simplified low-income reduction for singles (no dependants):
- No levy at or below $27,222
- Shaded-in levy between $27,223 and $34,027
- 2% above that range
It does not include Medicare Levy Surcharge (MLS), private health considerations, family thresholds, or every exemption category.
Worked examples
Example 1: Resident earning $85,000
Income tax is calculated as $4,288 + 30% of the amount above $45,000. The amount above $45,000 is $40,000, so tax is $4,288 + $12,000 = $16,288. Medicare levy at 2% is about $1,700. Total estimated tax is approximately $17,988.
Example 2: Resident earning $42,000
Tax is 16% of amount above $18,200. That is 16% of $23,800, or $3,808. Medicare levy may be reduced depending on low-income thresholds. This is why your effective tax rate can be much lower than your top bracket rate.
Example 3: Non-resident earning $100,000
Non-residents do not receive the tax-free threshold in this simplified setup. Tax is 30% of $100,000, which equals $30,000. Medicare levy is generally not applied in this calculator for non-residents.
How to reduce your tax legally in Australia
- Keep records: Save receipts and logs for deductible expenses.
- Maximise concessional super contributions: If appropriate for your strategy and caps.
- Claim legitimate work-related deductions: Only for expenses directly connected to earning income.
- Consider timing: Bringing forward deductible expenses can affect this year’s tax result.
- Review salary packaging options: Particularly if your employer supports fringe benefit arrangements.
Frequently asked questions
Is this an official ATO calculator?
No. This is an educational estimate tool designed to help with planning.
Does this include HECS/HELP repayments?
No. HELP, SAPTO, offsets, foreign income rules, trust distributions, and many other variables are not included.
Why does my accountant's estimate differ?
Professional calculations include your full tax profile: offsets, deductions, reportable fringe benefits, investment income, private health cover, and other details.
Final note
Use this calculator as a fast planning tool for budgeting, salary comparison, and rough cashflow forecasting. For lodgement decisions and exact liabilities, rely on official ATO guidance or a registered tax agent.