Australia calculator

Tax Calculator Australia - 2025-2026

Our free tax calculator helps you make informed financial decisions in Australia. Whether you are planning your budget, evaluating a loan, or projecting investment growth, our calculator provides accurate results based on Australia specific rates and regulations.

At a Glance

How much tax will I pay in Australia for 2025-2026?

Your tax in Australia includes Income Tax (progressive rates from 0-45% based on 2025-2026 brackets), the Medicare Levy (2%), and potentially the MLS. Use our free tax calculator with your income, deductions, and offsets to get an accurate estimate.

Quick Answer

How are income taxes calculated in Australia?

Income Tax in Australia for 2025-2026 uses a progressive system with a $18,200 tax-free threshold followed by 19%, 30%, 37%, and 45% brackets. The 2% Medicare Levy is added for most taxpayers, and the Medicare Levy Surcharge applies to high earners without private health insurance. Various offsets like LITO reduce tax for low-income earners. Dividends carry franking credits, and capital gains on assets held 12+ months receive a 50% discount.

Tax Calculator

Calculates income tax using progressive tax brackets

Inputs

Annual Income

Deductions

Filing Status

Tax Year

Results

Tax Summary

Gross IncomeA$80,000.00

Taxable IncomeA$65,400.00

Total TaxA$10,407.54

Effective Tax Rate13.01%

Marginal Tax Rate30.00%

Tax Brackets

0.00% (A$0.00 - A$18,200.00)A$0.00

16.00% (A$18,201.00 - A$45,000.00)A$4,287.84

30.00% (A$45,001.00 - A$65,400.00)A$6,119.70

How to Use the Tax Calculator

Follow these simple steps to get accurate results in just a few clicks.

1
Enter your total assessable income
Input all taxable income for 2025-2026 in A$, including salary, investment income, and business profits.
2
Claim your deductions
Add work-related expenses, home office costs, investment property expenses, or self-education. The standard deduction option may be simpler.
3
Include tax offsets
Indicate eligibility for LITO, SAPTO, or the Private Health Insurance Rebate to reduce your tax bill.
4
Add franked dividends and capital gains
Include any dividends with franking credits and capital gains (remember the 50% CGT discount for assets held 12+ months).
5
Review your total tax estimate
View your Income Tax, Medicare Levy, offsets, franking credit refunds, and effective tax rate for 2025-2026.

Australia Income Tax Calculator

Estimate your income tax liability for 2025-2026 in Australia. Enter your income, deductions, and filing status to get an accurate tax estimate.

Tax Brackets and Rates in Australia

Australia tax brackets for 2025-2026 range from basic rate to top marginal rate. Our calculator applies progressive taxation with applicable deductions and credits.

Frequently Asked Questions

What are the 2025-2026 tax brackets in Australia?

For 2025-2026: 0% on $0-$18,200 (tax-free threshold), 19% on $18,201-$45,000, 30% on $45,001-$120,000, 37% on $120,001-$180,000, and 45% above $180,000. Plus 2% Medicare Levy on all taxable income. The Low Income Tax Offset (LITO) of up to $700 reduces tax for incomes under $66,667.

How does the Medicare Levy Surcharge work?

Single taxpayers earning over $93,000 (or $186,000 for families) without appropriate private hospital insurance pay the Medicare Levy Surcharge of 1-1.5%. This is on top of the standard 2% Medicare Levy. Having an appropriate level of private hospital cover avoids this surcharge.

What tax offsets and deductions are available in Australia?

Key offsets include: Low Income Tax Offset (LITO, up to $700), Low and Middle Income Tax Offset (if extended), Senior and Pensioners Tax Offset (SAPTO, up to $2,230), and the Private Health Insurance Rebate (varies). Common deductions include work-related expenses, home office costs, self-education, and charitable donations.

How is capital gains tax calculated in Australia?

Capital gains are added to your assessable income and taxed at your marginal rate. Assets held for 12+ months qualify for a 50% CGT discount (individuals). The CGT discount increases to 33.33% for super funds. Your main home is CGT-exempt. Net capital losses can offset capital gains indefinitely.

How is dividend income taxed in Australia?

Dividends from Australian companies come with franking credits representing the tax already paid by the company. These credits reduce your tax liability on the dividends (or may generate a refund if your marginal rate is below the company tax rate). This system avoids double taxation of corporate profits.

What is the ATO and how does tax filing work?

The Australian Taxation Office (ATO) administers the tax system. Most employees use myTax through myGov to lodge their tax return by 31 October. Registered tax agents have until 15 May the following year. Your employer provides an income statement (formerly PAYG summary) digitally through ATO Online Services.

How does negative gearing affect my taxes?

Negative gearing occurs when the costs of owning an investment property (interest, maintenance, management fees) exceed the rental income. This net loss can be deducted from your other income (e.g., salary), reducing your overall tax bill. Capital gains from property sale are taxed at your marginal rate with the 50% CGT discount for 12+ month holdings.

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Last Updated: June 2026 — Reviewed Against Official Sources

Official Sources

Australia calculators use data from the following official government agencies:

Australian Taxation Office (ATO) — Income tax rates, Medicare levy, and superannuation contribution limits.
Australian Bureau of Statistics (ABS) — Wage data, employment statistics, and cost of living indices.
Reserve Bank of Australia (RBA) — Cash rate, inflation targets, and monetary policy data.

Methodology

Our Australian calculators follow tax rates, thresholds, and superannuation rules published by the Australian Taxation Office (ATO). Wage and economic data is sourced from the Australian Bureau of Statistics (ABS). Mortgage rates reflect RBA cash rate influences and market averages. All figures are for educational purposes.

Data Sources

All tax brackets, contribution rates, and economic data used in our calculators are sourced from the official government publications listed above. Rates are updated at least annually to reflect the latest tax year and regulatory changes. Users should verify critical figures with official sources or qualified professionals.

Last updated: June 2026. Information may change; always verify with official sources.