Australia Income Tax Calculator
Calculate Australian income tax for 2026–27 with the new 15% rate, the low income tax offset and the Medicare levy.
About the Australia Income Tax Calculator
From 1 July 2026 the rate on income between $18,201 and $45,000 falls from 16% to 15%. The other resident rates stay at 30% to $135,000, 37% to $190,000 and 45% above. The low income tax offset of up to $700 reduces tax for incomes under $66,667, and most residents pay a 2% Medicare levy. The super guarantee is 12%.
The formula
Tax = brackets − LITO + 2% Medicare levy
Resident rates 2026–27
| Taxable income | Rate |
|---|---|
| $0 – $18,200 | Nil |
| $18,201 – $45,000 | 15% |
| $45,001 – $135,000 | 30% |
| $135,001 – $190,000 | 37% |
| $190,001 – and over | 45% |
Worked example
Example: Tax 2026–27 = $22,200
- Inputs: Taxable income: $99,000; Medicare levy: 2%; Income includes super?: No (super paid on top).
- Formula: Tax = brackets − LITO + 2% Medicare levy
- Result: Tax 2026–27 = $22,200
- Marginal rate: 30%
- Average rate: 22.4%
Things to keep in mind
- The Medicare levy low-income reduction, surcharge and HELP repayments aren't included.
Questions people ask
Is the tax-free threshold automatic?
Only if you claim it with your main employer; it's $18,200.
Do foreign residents pay the same?
No; they have no tax-free threshold and start at 30%.