This calculator estimates Australian income tax and the Medicare Levy for the 2025–26 financial year. Calculations apply the ATO’s progressive tax brackets and the standard 2% Medicare Levy rate.
Input annual income in AUD, residency status, and any extra income sources.
Choose Medicare Levy treatment, HECS-HELP status, and applicable offsets or deductions.
Estimated income tax, Medicare Levy, and net income update automatically.
2025–26 ATO tax rates · Stage 3 cuts applied
A plain-English read of where every dollar of the salary lands — using ATO 2025–26 rates and current Medicare, MLS and HECS / HELP settings.
The ATO applies marginal rates: each portion of taxable income is taxed at the rate of the bracket it falls into. Thresholds last shifted on 1 July 2024 with the Stage 3 tax cuts. The colour swatches map to the bracket-fill chart in the result panel.
| Bracket | Rate | Annual Portion | Tax on Full Bracket | Cumulative Tax |
|---|
Marginal rate is what is paid on the next dollar earned. Effective rate is what is paid on average across all dollars. The effective rate is always lower than (or equal to) the marginal rate.
In the 30% bracket. The next dollar earned is taxed at this rate, not the whole salary.
Income tax + Medicare on gross. Total deductions are 21.8% of gross.
How this gross income compares to the Australian taxpayer distribution. Filterable by gender and age group. Source: ATO Taxation Statistics 2022–23.
For every AUD 100 of income tax + Medicare collected, here's roughly how the Federal Government spends it — based on Treasury's Budget 2025–26 Federal expenditure breakdown. Bars show the annual contribution to each function from AUD 19,588 in tax.
ATO-confirmed rates for the 2025–26 financial year (1 July 2025 – 30 June 2026). All figures sourced from official government data.
New marginal repayment system from 1 July 2025. Threshold lifted to AUD 67,000. A 20% reduction was applied to all HELP debts in June 2025.
Additional surcharge for higher-income earners without appropriate private hospital cover. 2025–26 thresholds (singles).
Super Guarantee reached its final scheduled rate of 12% on 1 July 2025. Payday Super applies from 1 July 2026.
Low-income earners may be exempt from or pay a reduced Medicare Levy. The standard rate is 2% of taxable income.
| Category | No Levy Below | Reduced Levy Up To |
|---|---|---|
| Singles | AUD 27,222 | AUD 34,027 |
| Families (base) | AUD 45,907 | AUD 57,383 |
| Seniors / pensioners — single | AUD 43,020 | AUD 53,775 |
| Seniors / pensioners — family | AUD 59,886 | AUD 74,857 |
Family lower thresholds increase by AUD 4,216 and upper thresholds by AUD 5,270 for each dependent child. Source: ATO Medicare Levy reduction.
The LITO reduces tax payable for lower- and middle-income earners. It is applied automatically by the ATO when a return is lodged.
| Taxable Income | LITO Amount |
|---|---|
| Up to AUD 37,500 | Full offset of AUD 700 |
| AUD 37,501 – 45,000 | AUD 700 minus 5¢ per $1 over AUD 37,500 |
| AUD 45,001 – 66,667 | AUD 325 minus 1.5¢ per $1 over AUD 45,000 |
| Above AUD 66,667 | No offset |
SAPTO provides additional tax relief for eligible seniors at Age Pension age (67+).
| Status | Maximum Offset | Cutout Income |
|---|---|---|
| Single | AUD 2,230 | AUD 52,759 |
| Couple (each) | AUD 1,602 | AUD 43,810 |
No tax-free threshold applies.
| Income | Rate |
|---|---|
| AUD 0 – 135,000 | 30% |
| AUD 135,001 – 190,000 | 37% |
| AUD 190,001+ | 45% |
Subclass 417 and 462 visa holders.
| Income | Rate |
|---|---|
| AUD 0 – 45,000 | 15% |
| AUD 45,001 – 135,000 | 30% |
| AUD 135,001 – 190,000 | 37% |
| AUD 190,001+ | 45% |
Common expense categories with relaxed substantiation requirements per the ATO.
Recent tax legislation, ATO compliance updates, and policy changes affecting Australian taxpayers — sourced from official government channels.
Common questions about Australian income tax, the Medicare Levy, HECS / HELP, deductions, and superannuation — answers verified against official ATO guidance.
For educational and informational purposes only. This calculator produces estimates based on the inputs provided and the ATO 2025–26 tax brackets, including the Stage 3 tax cuts effective from 1 July 2024. Medicare Levy is calculated at 2% with low-income thresholds applied. Medicare Levy Surcharge thresholds are AUD 101,000 (singles) and AUD 202,000 (families) for 2025–26. HECS / HELP repayments use the marginal repayment system effective 1 July 2025 with a threshold of AUD 67,000. Super Guarantee is 12% (final scheduled rate), and the concessional contribution cap is AUD 30,000. Family Tax Benefit estimates use Services Australia 2025–26 thresholds and may differ from formal entitlement assessments.
No warranty of accuracy. While Money Snap takes reasonable care to source figures from official authorities (ATO, ASIC MoneySmart, Services Australia), this calculator is provided "as is" without any express or implied warranty as to accuracy, completeness, timeliness, or fitness for any particular purpose. Rates, thresholds, and policies change frequently — figures shown may be out of date, and individual circumstances, deductions, offsets, residency, and income types not captured by the inputs may materially affect actual tax obligations.
Not financial advice. Information provided is general in nature only and does not take into account your personal objectives, financial situation, or needs. Results do not constitute financial, tax, or legal advice and use of this calculator does not create an advisory relationship. Before acting on any figure shown, obtain personal advice from a registered tax agent (Tax Practitioners Board), a licensed financial adviser, or seek formal computation directly from the ATO.
Limitation of liability. To the maximum extent permitted by law, Money Snap accepts no liability for any loss, damage, cost, or expense — direct or indirect — arising from reliance on this calculator or the information it produces. Users are responsible for verifying all figures with the relevant authority before relying on them. Use of this calculator is subject to our Terms of Use.
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