Planning your financial year budget or evaluating a new job offer in Australia? Use our free Australia Income Tax Calculator above to instantly calculate your estimated take-home pay.
Australia Take-Home Pay Calculator
Estimate your net annual and monthly salary after Income Tax and Medicare Levy.
2026–27 Resident Income Tax Brackets
Australia uses a progressive marginal tax system managed by the Australian Taxation Office (ATO). For resident taxpayers, the first $18,200 of annual income is entirely tax-free.
| Taxable Income (AUD) | Tax Rate |
|---|---|
| $0 – $18,200 | Nil |
| $18,201 – $45,000 | 15% |
| $45,001 – $135,000 | $4,020 plus 30% for each $1 over $45,000 |
| $135,001 – $190,000 | $31,020 plus 37% for each $1 over $135,000 |
| $190,001 and over | $51,370 plus 45% for each $1 over $190,000 |
What is the Medicare Levy?
In addition to standard income tax, most Australian tax residents pay a 2% Medicare Levy which goes toward funding Australia’s public healthcare system. This is automatically factored into your payroll withholding and net salary calculations.
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Frequently Asked Questions (FAQ)
When does the Australian financial year run?
The Australian financial year runs from July 1 through June 30 of the following calendar year.
What is the tax-free threshold?
The first $18,200 of your yearly earnings is tax-free for resident taxpayers, meaning no income tax is charged on that initial slice of your earnings.
