Income Tax Calculator Australia 2026-27

Work out exactly how much tax you'll pay this financial year — including the new 15% bracket that started on 1 July 2026 — and what lands in your bank account each payday.

Salary before tax, minus deductions
Estimated take-home pay
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Assumes Australian tax resident, tax-free threshold claimed, no private health insurance loading or other offsets.

Uses official 2026-27 rates (last reviewed July 2026). Estimates only — see assumptions below.

What changed on 1 July 2026

The biggest change this financial year is the legislated cut to the second tax bracket: income between $18,201 and $45,000 is now taxed at 15%, down from 16% in 2025-26. Because everyone earning above $45,000 passes through that band, every taxpayer on more than $45,000 saves the same $268 a year. A further cut to 14% is already legislated for 1 July 2027.

2026-27 resident tax brackets

Taxable incomeRateTax on this band
$0 – $18,2000%Nil (tax-free threshold)
$18,201 – $45,00015%15c per $1 over $18,200
$45,001 – $135,00030%$4,020 + 30c per $1 over $45,000
$135,001 – $190,00037%$31,020 + 37c per $1 over $135,000
Over $190,00045%$51,370 + 45c per $1 over $190,000

On top of income tax, most people pay the 2% Medicare levy. If you earn under $28,011 (single, 2026-27 threshold) you pay no levy at all, and it shades in gradually just above that, which this calculator handles automatically.

The Low Income Tax Offset

If you earn under $66,667 you also get some of the Low Income Tax Offset (LITO) — up to $700 for incomes below $37,500, tapering off above that. It's applied automatically when you lodge your return, and our calculator builds it in, which is why the result can differ from a simple bracket-by-bracket calculation.

Marginal vs average tax rate — why both matter

Your marginal rate is what the next dollar you earn is taxed at; your average rate is total tax divided by total income. Someone on $90,000 has a 30% marginal rate but an average rate closer to 21%. The marginal rate is what matters for decisions — overtime, salary sacrificing into super, or negative gearing — because those decisions all happen "at the margin".

Earning just into a higher bracket never leaves you worse off overall. Only the dollars above the threshold are taxed at the higher rate.

What this calculator doesn't include

To stay accurate for the typical case, this estimate excludes: the Medicare levy surcharge (only applies above $101,000 single / $202,000 family without private hospital cover), spouse and senior offsets, salary-packaged fringe benefits, and non-resident rates. If those apply to you, treat the result as a starting point and confirm with the ATO's official tools.

Frequently asked questions

What are the tax brackets in Australia for 2026-27?
For residents: 0% up to $18,200; 15% from $18,201–$45,000; 30% from $45,001–$135,000; 37% from $135,001–$190,000; and 45% above $190,000, plus the 2% Medicare levy for most taxpayers.
How much tax do I pay on $90,000 in Australia?
In 2026-27 a resident on $90,000 pays about $17,520 in income tax plus $1,800 Medicare levy, leaving take-home pay of roughly $70,680 a year (about $2,718 per fortnight) before any HECS repayments.
What is the tax-free threshold?
The first $18,200 you earn each year is tax-free if you're an Australian resident and claim the threshold with your main employer. With the Low Income Tax Offset, you effectively pay no tax until roughly $22,850.
Does this calculator include the Medicare levy surcharge?
No. The surcharge (1–1.5%) only applies if you earn above $101,000 single or $202,000 as a family and don't hold private hospital cover. Add it manually if that's you.
Why is my payslip different from this estimate?
Employers withhold using ATO PAYG schedules, which spread your expected annual tax evenly and can't know about deductions, second jobs or offsets. The final washup happens when you lodge your tax return.

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