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Australia Income Tax Calculator

Estimate Australian resident income tax for the 2026-27 financial year. Uses the 15/30/37/45% brackets plus the 2% Medicare levy and shows marginal and effective rates.

What is this tool?

Australia taxes individual income progressively. For the 2026-27 financial year the resident rates are 0% up to $18,200, then 15%, 30%, 37% and 45%. On top of income tax most residents also pay the 2% Medicare levy, which funds public health care.

How it works

Enter your taxable income for the 2026-27 financial year. The tool applies the resident brackets, optionally adds the 2% Medicare levy, and shows the income tax, total tax, marginal rate and effective rate.

2026-27 resident income tax brackets

Taxable income is taxed progressively. The tax-free threshold is $18,200.

Taxable incomeRate
$0 – $18,2000%
$18,201 – $45,00015%
$45,001 – $135,00030%
$135,001 – $190,00037%
$190,001 and over45%

Medicare levy

Most residents pay a 2% Medicare levy on taxable income to help fund public health care. Incomes at or below the low-income threshold are exempt. This tool estimates the levy; the income-tax calculation excludes the Low Income Tax Offset (LITO), which can further reduce tax for low incomes.

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How to use

  1. Enter your taxable income in AUD.
  2. Toggle Medicare levy on or off.
  3. Press Calculate to see tax, rates and breakdown.

Frequently Asked Questions

What is the tax-free threshold?

The first $18,200 of resident taxable income is taxed at 0%, so income up to that amount has no income tax.

Why is the first bracket 15%?

From 1 July 2026 the lowest marginal rate was reduced to 15% as part of the 2025-26 Federal Budget tax cuts.

Is the Medicare levy always 2%?

Most residents pay 2% of taxable income, but very low incomes below the low-income threshold are exempt.

This tool is for informational purposes only and does not constitute financial advice. Consult a qualified financial professional for advice specific to your situation.

Tips & Advice

This estimates tax on taxable income. It does not include the Low Income Tax Offset, HECS-HELP repayments or deductions — see the dedicated tools.

Related Tools

Sources & References

Last reviewed: September 2026.

  1. Australian Taxation Office – Tax rates – Australian residents.
  2. Australian Taxation Office – Medicare levy.

Limitations

Uses the resident tax scales for 2026-27 and the 2% Medicare levy without the low-income reduction. It does not model the Medicare levy surcharge, the seniors’ and pensioners’ tax offset, HELP repayments or withholding schedules, and it excludes the low and middle income tax offset, which has ended. Non-resident and working holiday maker rates differ; figures are estimates only.

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