Income Tax Calculator AU
Estimate income tax and effective rate from taxable income (simplified).
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How it works
This applies a single effective tax rate to your taxable income for a quick estimate. Real tax uses progressive bands and reliefs, so adjust the rate or treat the result as a rough guide only.
Tax = Income × effective rateFrequently asked questions
What is the tax-free threshold in Australia?
For 2025–26 the tax-free threshold is $18,200 — residents pay no income tax on the first $18,200 they earn.
What are the Australian tax brackets for 2025–26?
0% to $18,200, 16% to $45,000, 30% to $135,000, 37% to $190,000, and 45% above $190,000, plus the Medicare Levy.
What is the Medicare Levy?
It is an extra 2% of taxable income most residents pay on top of income tax to fund public healthcare; low-income earners may be exempt or pay less.
What is the difference between marginal and effective rate?
Your marginal rate is the rate on your top band; your effective rate is total tax divided by total income, which is lower.
Will earning more push all my income into a higher bracket?
No. Only the income above each threshold is taxed at the higher rate, so a pay rise never leaves you worse off.
Is this my exact take-home pay?
No — it is a simplified estimate that may exclude offsets and the Medicare Levy. Check ATO figures for exact amounts.
Income Tax Calculator
Income tax is charged in slices: each band of income is taxed at its own rate, so only the part that falls inside a higher band is taxed at that higher rate. This calculator gives a simplified estimate of the tax on your earnings and the take-home pay left over.
Marginal vs effective rate
Your marginal rate is the rate on your next unit of income (your top band). Your effective rate is total tax divided by total income, and is always lower because the early bands are taxed less. A pay rise can never leave you worse off — only the income above a threshold is taxed at the higher rate.
Australia tax (2025–26)
Residents pay no tax on the first $18,200 (the tax-free threshold), then 16% to $45,000, 30% to $135,000, 37% to $190,000 and 45% above that. Most residents also pay a 2% Medicare Levy on top. Only the income inside each band is taxed at that band’s rate.
This is a simplified estimate. Levies, credits, deductions and local taxes can change the final figure — check your official tax authority for exact, current-year amounts.
Results are estimates for general guidance in Australia and may not reflect the latest local rates, fees or rules. Check official sources before making decisions.