Australia Income Tax Calculator 2025-26: ATO Rates and Take-Home Pay
Estimate your Australian take-home pay after income tax, the Medicare Levy, LITO and any HECS repayment, using 2025-26 ATO rates. Resident and non-resident. Free and private.
Last updated: June 2026
From 1 July 2026, the 16% rate on A$18,201โA$45,000 drops to 15%, saving up to A$268 a year.
Take-home pay
- Net pay (annual)
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- Monthly
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What you actually take home, after the levy
Your gross salary and your take-home pay are two very different numbers in Australia. This Australia income tax calculator applies the 2025-26 ATO rates, adds the Medicare Levy, subtracts the Low Income Tax Offset and includes any HECS repayment, so you see what really lands in your account each year and month.
Residents pay nothing on the first A$18,200. The next band to A$45,000 is taxed at 16%, then the big middle band to A$135,000 at 30%, a rate cut delivered by the Stage 3 reforms. Above that it is 37% to A$190,000 and 45% beyond. Almost everyone also pays the 2% Medicare Levy, and higher earners without private hospital cover face the Medicare Levy Surcharge on top.
Remember that superannuation is separate. Your employer pays the 12% Super Guarantee on top of your salary, so it does not reduce your take-home pay, it builds your retirement savings. See how it compounds with our superannuation calculator. Everything here runs privately in your browser with nothing uploaded.
Disclaimer: Tax calculations use 2025-26 ATO rates for illustrative purposes. HECS/HELP repayment thresholds are approximate and change annually. Use the ATO income tax calculator at ato.gov.au for exact figures. Not financial advice. Full disclaimer.
How it works
Three quick steps โ no account, nothing uploaded to a server.
Enter your income
Type your annual gross income in Australian dollars.
Set your details
Choose residency and toggle Medicare, cover and HECS.
See your take-home
Get tax, levy and net pay with a full breakdown.
Related reading
Rates and rules on this page are verified against Australian Taxation Office (ATO). Last checked July 2026.
FAQ
Frequently asked questions
What are the Australian income tax rates for 2025-26?
For residents, the first A$18,200 is tax-free. Income from A$18,201 to A$45,000 is taxed at 16%, from A$45,001 to A$135,000 at 30%, from A$135,001 to A$190,000 at 37%, and above A$190,000 at 45%. On top of that, most residents pay the 2% Medicare Levy. This calculator applies the brackets, the levy and the Low Income Tax Offset to show your take-home pay.
What is the Medicare Levy?
The Medicare Levy is 2% of your taxable income and helps fund Australia's public health system. Low income earners pay a reduced rate or nothing: it phases in for taxable income between about A$27,222 and A$34,027. Higher earners without private hospital cover may also pay the Medicare Levy Surcharge of 1% to 1.5% on top, which the calculator adds if you indicate you have no cover.
How did the Stage 3 tax cuts change things?
From 1 July 2024, the Stage 3 cuts replaced the old 19% and 32.5% rates. The new structure taxes income from A$18,201 to A$45,000 at 16% and the large A$45,000 to A$135,000 band at 30%, down from 32.5%. Middle earners gained the most. For someone on A$80,000 the cuts meant noticeably higher take-home pay, which this calculator reflects with the 2025-26 rates.
What is the LITO?
The Low Income Tax Offset is a tax reduction of up to A$700 for people earning A$37,500 or less. It reduces by 5 cents per dollar earned above A$37,500, then by 1.5 cents per dollar above A$45,000, reaching zero at A$66,667. It is an offset, so it lowers tax payable but cannot create a refund on its own. The calculator applies it automatically for residents.
How do HECS/HELP repayments work?
If you have a student loan (HECS-HELP), compulsory repayments are taken once your income passes the threshold, around A$54,435 for 2025-26, rising in steps from 1% up to 10% of income at higher incomes. The repayment is collected through the tax system. Thresholds change each year, so tick the HECS option for an estimate and confirm the exact figure at ato.gov.au.