How do I calculate Australian income tax for 2025-26?

Enter your annual salary (or take-home pay), select FY 2025-26, and click Calculate. The calculator applies the 2025-26 ATO tax brackets including the Stage 3 tax cuts, Medicare levy, and any deductions you enter.

What is the tax-free threshold in Australia for 2025-26?

The tax-free threshold is $18,200. Income up to this amount is not taxed. Above $18,200, the 19% rate applies up to $45,000 under the 2025-26 brackets.

How much is the Medicare levy in Australia?

The Medicare levy is 2% of taxable income for most taxpayers. Low-income earners below approximately $26,000 may pay a reduced rate or none at all. A Medicare Levy Surcharge of 1–1.5% applies if you earn above $93,000 and don't hold private hospital cover.

How do I estimate my ATO tax refund?

Enter your take-home pay (from payslip) and select 'employee'. The calculator estimates how much PAYG was withheld versus your actual tax liability. The difference is your likely refund or bill. You can also enter your exact PAYG withheld from your income statement.

Does salary sacrifice reduce tax in Australia?

Yes. Salary sacrifice contributions to super reduce your taxable income. They are taxed at 15% in the fund instead of your marginal rate — saving you the difference. This calculator models salary sacrifice under the Deductions section.

🇦🇺 Australian Tax Calculator

Income tax, Medicare levy & ATO refund estimate — 2025–26

Income

Financial Year

Annual Gross Salary

Excluding employer super

Salary includes super (total package / CTC)

Bonus / Extra Income (optional)

Taxed at marginal rate

Private hospital cover (no MLS)

Work from Home

hrs/wk

Work Vehicle

Other Work Expenses

Charitable Donations

Self-Education

Tax Agent Fees

Income Protection

Salary Sacrifice to Super

Union / Professional Fees

Investment Expenses

Net Rental Loss

Work Devices

Prepaid Expenses

Tax Estimate 2025–26

Total Tax

—

You Keep

—

Effective —

Marginal —

Take-home —

Income

Gross salary —

Taxable income —

Tax Breakdown

Income tax (from brackets) —

Medicare levy —

⚠️ Estimate only — not financial or tax advice. Lodge via myTax or a registered tax agent.

Tax Brackets 2025–26

Taxable income	Rate

Medicare levy2.0%

MLS threshold$93,000

Super guarantee12%

WFH fixed rate67¢/hr

Vehicle rate88¢/km

Rates apply to Australian tax residents. LITO: up to $700 for incomes below $66,667.