Australia Income Tax Calculator 2025/26

For Australian residents in 2025/26: income up to $18,200 is tax-free (tax-free threshold). Income from $18,201 to $45,000 is taxed at 16%. Income from $45,001 to $135,000 is taxed at 30%. Income from $135,001 to $190,000 is taxed at 37%. Income above $190,000 is taxed at 45%. Note: these are the revised rates following the Stage 3 tax cuts.

The Medicare levy is 2% of your taxable income, paid in addition to income tax. It helps fund Australia's public health system (Medicare). You may be exempt from the levy if your income is below the low-income threshold ($26,000 for individuals in 2025/26) or eligible for a reduction. Some visa holders and those with private hospital cover may also qualify for a Medicare Levy Surcharge exemption.

HECS-HELP is the Australian government loan scheme for university students. Repayment is compulsory once your income exceeds the minimum repayment threshold ($54,435 in 2025/26). Repayment rates start at 1% and increase progressively to 10% for high incomes. The debt is indexed to CPI each year. Repayments are made through the tax system via your tax return or PAYG withholding.

Superannuation (super) is Australia's compulsory retirement savings system. Employers must pay 11.5% of your ordinary time earnings into your super fund in 2025/26 (rising to 12% in July 2025). Super contributions are not deducted from your take-home pay — they are paid on top of your salary by your employer. However, salary sacrifice super contributions are pre-tax and reduce your taxable income.

The Low Income Tax Offset (LITO) reduces the amount of tax payable for low to middle income earners. For 2025/26, the maximum LITO is $700 for incomes up to $37,500. It phases out between $37,500 and $66,667, reducing by 5 cents for every dollar above $37,500. The LITO is automatically applied when you lodge your tax return.

Most Australians need to lodge a tax return each year if they earn above the tax-free threshold ($18,200). Even if no tax is owed, lodging a return ensures you receive any refund you are entitled to. The Australian tax year runs from 1 July to 30 June, and tax returns are typically due by 31 October.