Australian Income Tax Calculator
Estimate your annual income tax payable as an Australian tax resident, including Medicare levy and the Low Income Tax Offset.
Quick presets
Take-Home Income
$90,812
/ year after tax
Average Tax Rate
24.3%
Marginal Tax Rate
30%
Rates current as of FY2025-26. Estimates only — not personal advice.
How Australian income tax works
Australia uses a progressive (marginal) tax system: you don’t pay one flat rate on your whole income — each slice of income is taxed at its own rate, rising as you earn more. The first $18,200 is tax-free, and higher portions are taxed at increasing rates up to 45%. On top of income tax, most residents also pay the 2% Medicare levy, while low earners receive the Low Income Tax Offset (LITO) which reduces their tax. The calculator above puts it all together — enter your annual taxable income to see your estimated tax and take-home pay.
Australian resident tax brackets (FY2025-26)
These are the marginal tax rates for Australian tax residents for the 2025-26 financial year (1 July 2025 – 30 June 2026). The 2% Medicare levy applies on top for most taxpayers.
| Taxable income | Tax on this income |
|---|---|
| $0 – $18,200 | Nil |
| $18,201 – $45,000 | 16c for each $1 over $18,200 |
| $45,001 – $135,000 | $4,288 + 30c for each $1 over $45,000 |
| $135,001 – $190,000 | $31,288 + 37c for each $1 over $135,000 |
| Over $190,000 | $51,638 + 45c for each $1 over $190,000 |
Rates shown are for Australian tax residents and exclude the Medicare levy (2%), Medicare Levy Surcharge, and HECS-HELP repayments. Non-residents and working holiday makers are taxed under different schedules.
Tax at common income levels
Estimated total tax (income tax plus Medicare levy, after LITO) and take-home pay for an Australian resident:
$60,000
$9,888
total tax
Take-home: $50,112
$90,000
$19,588
total tax
Take-home: $70,412
$120,000
$29,188
total tax
Take-home: $90,812
How to legally reduce your tax
Your taxable income — not your gross salary — is what is actually taxed. Legitimately lowering it is where good tax planning pays off. Common strategies include:
- •Claiming all the work-related deductions you are entitled to (and keeping records)
- •Concessional (pre-tax) super contributions, within the annual cap
- •Negative gearing and depreciation on an investment property
- •Timing income and deductions across financial years
- •Choosing the right structure (sole trader, company, trust) for business income
Frequently asked questions
How much tax do I pay on $90,000 in Australia?
For an Australian resident in FY2025-26, roughly $19,200 in income tax plus about $1,800 Medicare levy — around $21,000 in total, leaving about $69,000 take-home. Use the calculator above for your exact income.
What is the tax-free threshold in Australia?
The first $18,200 of a resident’s taxable income is tax-free. You only start paying income tax on income above that, beginning at 16c in the dollar.
What is the difference between my marginal and average tax rate?
Your marginal rate is the rate on your next dollar of income (your top bracket). Your average rate is your total tax divided by your total income — always lower than the marginal rate, because the lower brackets are taxed less. The calculator shows both.
Does this include the Medicare levy and HECS-HELP?
It includes the 2% Medicare levy and the Low Income Tax Offset, but not the Medicare Levy Surcharge, HECS-HELP repayments, private health rebates, or capital gains. For a complete picture including these, speak with our tax team.
How can I pay less tax legally?
By reducing your taxable income through legitimate means — claiming all eligible deductions, making concessional super contributions, using negative gearing on investments, and choosing the right business structure. The right approach depends on your situation, which is exactly what an accountant helps you plan. A well-prepared return often pays for itself.
When is my tax return due?
If you lodge it yourself, the deadline is usually 31 October. If you lodge through a registered tax agent like CPL, you generally get a later deadline — often into the following May — provided you are on the agent’s books before 31 October.
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