Australian Tax Calculator 2026–27
Calculate your estimated Australian income tax for the 2026–27 financial year. Enter your taxable income to see your estimated income tax, Medicare levy, take-home income, effective tax rate and marginal tax rate.
You can also include additional taxable income, capital gains, capital losses, eligible deductions and tax already withheld to get a more complete estimate of your tax position, including a potential refund or amount owing.
Use the calculator for a quick estimate. Explore the breakdown to understand how Australian income tax is calculated.
Income Tax Calculator Australia
Enter your income and results update using the information you provide and show an estimated breakdown of your Australian income tax.
Calculator results are estimates only. Individual circumstances, tax offsets, Medicare levy rules and other tax obligations may change your final assessment.
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What This Australian Tax Calculator Calculates
This Australian tax calculator helps you estimate how much income tax may apply to your income and how much you could have left after tax.
- Choose whether you need the tax calculator for annual income, weekly pay, fortnightly pay, or monthly salary calculations. Our Australia tax calculator handles all pay frequencies.
- Input your gross income into the tax calculator Australia interface. Add any additional income sources like rental income, dividends, or capital gains if applicable.
- Include work-related deductions, charitable donations, and any tax offsets you’re eligible for. The simple tax calculator automatically calculates their impact on your tax liability.
- The tax calculator displays your total tax payable, expected refund, effective tax rate, and after-tax income immediately. Save or print your results for future reference.
Depending on the information you enter, the calculator can show:
- Estimated Australian income tax
- Medicare levy
- Total taxable income
- Low Income Tax Offset where applicable
- Net income tax
- Total tax and levies
- Estimated take-home income
- Effective tax rate
- Marginal tax rate
- Estimated tax refund or amount owing when tax withheld is entered
- Weekly, fortnightly, monthly and annual breakdowns
How the Australian Tax Calculator Works
Australian income tax is progressive. This means your entire income is not taxed at your highest tax rate. Instead, different portions of your taxable income fall into different tax brackets. Each portion is taxed at the rate that applies to that bracket.
The calculator follows several steps to produce your estimate.
1. Calculate Your Taxable Income
Your taxable income is generally the income on which your income tax is calculated.
The calculator starts with the income you enter and can also take into account additional taxable income and relevant capital gains.
Eligible deductions entered into the calculator reduce the amount of income used for the tax estimate.
A simplified calculation is:
Income + Additional Taxable Income + Taxable Capital Gains − Eligible Deductions = Estimated Taxable Income
Your actual taxable income may differ depending on your individual circumstances and the tax treatment of each income source or deduction.
2. Apply Australian Income Tax Rates
Once taxable income has been determined, the calculator applies the relevant resident individual income tax brackets for the selected financial year.
Only the portion of your income that falls within each tax bracket is taxed at that bracket’s rate.
For a complete explanation of the current thresholds, see our Australian Tax Brackets guide.
3. Apply the Low Income Tax Offset
The Low Income Tax Offset, commonly known as LITO, may reduce the income tax payable by eligible lower-income taxpayers.
Where applicable, the calculator applies the relevant LITO calculation before displaying estimated net income tax.
4. Estimate Medicare Levy
Most Australian taxpayers may also pay a Medicare levy in addition to income tax.
The standard Medicare levy is generally calculated at 2% of taxable income, although exemptions and reductions can apply depending on income and individual circumstances.
The calculator provides an estimate based on its standard assumptions.
5. Calculate Total Estimated Tax
The calculator combines estimated net income tax and applicable Medicare levy to provide an estimated total tax liability.
You can then see how that tax affects your annual income as well as equivalent monthly, fortnightly or weekly amounts.
Tax Payable vs Tax Withheld: What's the Difference?
These two figures are often confused.
Tax payable is the estimated amount of income tax and applicable levies calculated on your taxable income.
Tax withheld is money that has already been withheld from your pay during the financial year, usually by your employer.
Entering tax withheld allows the calculator to compare what has already been paid with your estimated tax liability.
If tax withheld is higher than estimated tax liability You may have an estimated tax refund.
If tax withheld is lower than estimated tax liabilityYou may have an estimated amount owing.
A simplified example is:
Tax Withheld − Estimated Tax Liability = Estimated Refund
If the result is negative, the difference may instead represent an estimated tax debt.
Income Tax Calculator vs Tax Return Calculator
An income tax calculator and a tax return calculator answer related but slightly different questions.
An income tax calculator estimates the tax payable on your taxable income.
A tax return or refund estimate also needs to consider how much tax has already been withheld during the year.
For example, if your estimated total tax liability is $18,000 and $20,000 has already been withheld, the difference could indicate an estimated $2,000 refund before considering other adjustments.
That’s why entering Tax Withheld is important if you want to estimate whether you could receive a refund or have an amount owing.
Example: How Tax Is Calculated on a $90,000 Income
Suppose an Australian resident has an annual taxable income of $90,000 and no additional income or deductions.
The calculator does not apply one tax rate to the entire $90,000.
Instead:
Income within the tax-free threshold is taxed at 0%.
The next portion of income is taxed at the applicable lower marginal rate.
Income within the next tax bracket is taxed at that bracket’s rate.
Medicare levy may then be added where applicable.
This produces the person’s estimated total tax liability.
The marginal tax rate shown by the calculator represents the tax rate applying to the next dollar of taxable income within the relevant bracket. It is not the percentage of the entire $90,000 income that is paid in tax.
The effective tax rate instead shows estimated total tax as a percentage of total taxable income.
This is why someone’s effective tax rate will usually be lower than their highest marginal income tax rate.
What Can Affect Your Tax Estimate?
Your final tax position depends on more than salary alone. Some of the factors that may affect taxable income or your final assessment include:
Additional Income
Rental income, investment income, business income and other taxable amounts can increase your total taxable income.
Use the Additional Income field where appropriate.
Capital Gains and Capital Losses
Selling investments or other CGT assets may create a capital gain or capital loss.
The Australian CGT rules can be complex, including eligibility for discounts and rules about how losses are applied.
The calculator provides a simplified way to include capital gains and losses, but it should not be treated as a complete capital gains tax assessment.
Work-Related Deductions
Eligible work-related expenses may reduce taxable income.
Only claim deductions you are legally entitled to claim and maintain any records required under Australian tax rules.
Donations
Certain donations to eligible organisations may be tax deductible.
Enter eligible deductible donations where applicable.
Tax Already Withheld
Your employer generally withholds tax from your salary or wages throughout the year.
Entering your total tax withheld allows the calculator to compare the amount already paid with your estimated liability and provide an indicative refund or amount owing.
Understanding Your Tax Calculator Results
Your results contain several figures. Here’s what each one means.
Total Taxable Income
The estimated taxable income used for the calculation after the inputs and deductions entered into the calculator have been considered.
Income Tax
The estimated income tax calculated using the tax brackets for the selected financial year.
LITO Offset
The estimated Low Income Tax Offset applied where eligible.
Net Income Tax
Estimated income tax after applicable LITO shown by the calculator.
Medicare Levy
The estimated Medicare levy included by the calculator.
Total Tax and Levies
Estimated net income tax plus applicable Medicare levy included in the calculation.
Net Take-Home Income
Your estimated income remaining after calculated tax and levies.
Marginal Tax Rate
The income tax rate applying to the next dollar of taxable income within your current tax bracket.
Effective Tax Rate
Estimated total tax expressed as a percentage of taxable income.
Why Our Tax Calculator Australia Stands Out
100% Free & ATO-Compliant
This Australia tax calculator uses official ATO tax rates, Medicare levy calculations, and tax offset formulas. Every result from our tax calculator Australia closely matches what you'll see on your actual tax assessment.
Simple & Lightning Fast
Our simple tax calculator delivers results seconds. No registration, no complex forms—just straightforward tax calculations that anyone can understand and trust.
Complete Tax Solutions
Beyond basic income tax, this tax calculator handles capital gains, tax deductions, multiple income sources, and various pay frequencies. It's the most comprehensive simple tax calculator australia offers.
Australian Income Tax Rates 2026–27
Australian resident individual income tax uses a progressive tax system, with different rates applying as taxable income moves through the tax brackets. The calculator automatically applies the rates for the financial year you select. For reference Tax Bracket 2026-27 table as below:
| Taxable income | Tax rate | Tax on this income |
|---|---|---|
| $0 – $18,200 | 0% | Nil |
| $18,201 – $45,000 | 15% | 15c for each $1 over $18,200 |
| $45,001 – $135,000 | 30% | $4,020 plus 30c for each $1 over $45,000 |
| $135,001 – $190,000 | 37% | $31,020 plus 37c for each $1 over $135,000 |
| $190,001 and over | 45% | $51,370 plus 45c for each $1 over $190,000 |
Additional Information
Medicare Levy: Generally 2% of taxable income
Medicare Levy Surcharge: 1%–1.5% for higher-income earners without eligible private health insurance
Learn more about Tax Brackets Australia