Australian Tax Return Calculator
Estimate your Australian tax refund for 2025-26 — tax withheld against tax payable, computed with ATO rates for the year just ended.
AU Tax Return Calculator
2025–26 ATO rates · refund or amount owing, income tax & take-home pay
Tax Estimate
RESIDENTYour tax return summary
A plain-English read of the tax on this income — using ATO 2025–26 rates, the Low Income Tax Offset and 2% Medicare levy where they apply.
Take-home pay by period
Estimated income and tax split across common pay periods, based on the income and settings entered above. Figures assume the amounts are spread evenly across the year.
| Period | Gross | Total Tax | Take-Home |
|---|---|---|---|
| Weekly | AUD 1,731 | AUD 377 | AUD 1,354 |
| Fortnightly | AUD 3,462 | AUD 753 | AUD 2,708 |
| Monthly | AUD 7,500 | AUD 1,632 | AUD 5,868 |
| Annual | AUD 90,000 | AUD 19,588 | AUD 70,412 |
2025–26 tax brackets
Taxable income is taxed at marginal rates — the portion sitting in each bracket is taxed at that bracket's rate. Source: ATO Individual income tax rates ↗
| Bracket | Rate | Tax on Full Bracket | Position |
|---|---|---|---|
| AUD 0 – 18,200 | 0% | AUD 0 | ✓ In bracket |
| AUD 18,201 – 45,000 | 16% | AUD 4,288 | ✓ In bracket |
| AUD 45,001 – 135,000 | 30% | AUD 27,000 | ◀ Current bracket |
| AUD 135,001 – 190,000 | 37% | AUD 20,350 | — |
| AUD 190,001+ | 45% | Varies | — |
Offsets & levies applied
How the Low Income Tax Offset, Medicare levy, Medicare Levy Surcharge and HELP/HECS repayment affect the estimate, based on the inputs above.
How Your Tax Return Is Calculated
A reference guide to the ATO's individual income tax system for the 2025–26 financial year — resident rates, the Medicare levy, study and training loan repayments, low income offsets, and worked examples. All figures verified against official ATO sources.
The 2025–26 income tax landscape
What changed and what stayed the same this financial year.
For the 2025–26 financial year (1 July 2025 to 30 June 2026), the resident income tax rates are unchanged from 2024–25. The tax-free threshold remains at AUD 18,200, and the lowest marginal rate is 16%. Income tax is calculated on taxable income, which is assessable income less allowable deductions.
Separately from income tax, most residents also pay the Medicare levy of 2% of taxable income, with a low-income reduction for those below the relevant thresholds. People with private hospital cover gaps and higher incomes may also pay the Medicare Levy Surcharge. Holders of study and training loans such as HELP and HECS make compulsory repayments once income passes AUD 67,000, under a marginal repayment system introduced from 1 July 2025.
Resident tax rates 2025–26
Rates for individuals who are Australian residents for tax purposes. Excludes the 2% Medicare levy.
| Taxable income | Tax on this income |
|---|---|
| 0 – AUD 18,200 | Nil |
| AUD 18,201 – 45,000 | 16c for each AUD 1 over 18,200 |
| AUD 45,001 – 135,000 | AUD 4,288 plus 30c for each AUD 1 over 45,000 |
| AUD 135,001 – 190,000 | AUD 31,288 plus 37c for each AUD 1 over 135,000 |
| AUD 190,001 and over | AUD 51,638 plus 45c for each AUD 1 over 190,000 |
Foreign resident tax rates 2025–26
Foreign residents do not receive the tax-free threshold and do not pay the Medicare levy.
| Taxable income | Tax on this income |
|---|---|
| 0 – AUD 135,000 | 30c for each AUD 1 |
| AUD 135,001 – 190,000 | AUD 40,500 plus 37c for each AUD 1 over 135,000 |
| AUD 190,001 and over | AUD 60,850 plus 45c for each AUD 1 over 190,000 |
Working holiday maker tax rates 2025–26
Applies to income earned on a 417 or 462 visa. No tax-free threshold and no Medicare levy.
| Taxable income | Tax on this income |
|---|---|
| 0 – AUD 45,000 | 15c for each AUD 1 |
| AUD 45,001 – 135,000 | AUD 6,750 plus 30c for each AUD 1 over 45,000 |
| AUD 135,001 – 190,000 | AUD 33,750 plus 37c for each AUD 1 over 135,000 |
| AUD 190,001 and over | AUD 54,100 plus 45c for each AUD 1 over 190,000 |
Medicare levy and surcharge
The Medicare levy helps fund the public health system and is separate from income tax.
The standard Medicare levy is 2% of taxable income for most residents. A reduction applies for low-income earners: for a single person with no eligible dependants and no seniors offset, no levy is payable on taxable income up to AUD 28,011, with the levy phasing in between AUD 28,011 and AUD 35,013, and the full 2% applying above that.
Medicare Levy Surcharge — single thresholds 2025–26
Applies to residents without an appropriate level of private hospital cover, based on income for surcharge purposes.
| Income for surcharge (single) | Surcharge rate |
|---|---|
| 0 – AUD 101,000 | 0% |
| AUD 101,001 – 118,000 | 1% |
| AUD 118,001 – 158,000 | 1.25% |
| AUD 158,001 and over | 1.5% |
Low Income Tax Offset (LITO)
A non-refundable offset that reduces income tax payable — not the Medicare levy.
| Taxable income | LITO amount |
|---|---|
| 0 – AUD 37,500 | AUD 700 |
| AUD 37,501 – 45,000 | AUD 700 less 5c for each AUD 1 over 37,500 |
| AUD 45,001 – 66,667 | AUD 325 less 1.5c for each AUD 1 over 45,000 |
| AUD 66,668 and over | Nil |
Study and training loan repayments (HELP/HECS)
From 1 July 2025, compulsory repayments use a marginal system applied to income above AUD 67,000.
| Repayment income | Compulsory repayment |
|---|---|
| 0 – AUD 67,000 | Nil |
| AUD 67,001 – 125,000 | 15c for each AUD 1 over 67,000 |
| AUD 125,001 – 179,285 | AUD 8,700 plus 17c for each AUD 1 over 125,000 |
| AUD 179,286 and over | 10% of total repayment income |
Worked examples
Illustrative figures for residents in 2025–26, including the 2% Medicare levy and the Low Income Tax Offset where applicable. Private hospital cover is assumed, and no study loan unless stated.
Australian Tax Return Snapshot
Visual breakdown of tax payable, take-home pay, and effective rates by income level
ATO resident rates · 2025–26 financial yearTax by Income Level
Resident, with private hospital cover, no study loan
Marginal vs Effective Rate
Why your average rate is lower than your bracket
Where AUD 90,000 Goes
Take-home pay vs income tax vs Medicare levy
Total Tax at Sample Incomes
Income tax plus 2% Medicare levy
| Taxable income | Income tax | Medicare levy | Total tax | Take-home | Effective rate |
|---|---|---|---|---|---|
| AUD 30,000 | AUD 1,188 | AUD 199 | AUD 1,387 | AUD 28,613 | 4.6% |
| AUD 45,000 | AUD 3,963 | AUD 900 | AUD 4,863 | AUD 40,137 | 10.8% |
| AUD 60,000 | AUD 8,688 | AUD 1,200 | AUD 9,888 | AUD 50,112 | 16.5% |
| AUD 90,000 | AUD 17,788 | AUD 1,800 | AUD 19,588 | AUD 70,412 | 21.8% |
| AUD 120,000 | AUD 26,788 | AUD 2,400 | AUD 29,188 | AUD 90,812 | 24.3% |
| AUD 135,000 | AUD 31,288 | AUD 2,700 | AUD 33,988 | AUD 101,012 | 25.2% |
| AUD 160,000 | AUD 40,538 | AUD 3,200 | AUD 43,738 | AUD 116,262 | 27.3% |
| AUD 190,000 | AUD 51,638 | AUD 3,800 | AUD 55,438 | AUD 134,562 | 29.2% |
| AUD 250,000 | AUD 78,638 | AUD 5,000 | AUD 83,638 | AUD 166,362 | 33.5% |
Australian Tax Return News & Updates
Recent ATO, Treasury and Department of Education announcements affecting individual income tax and study loans — sourced from official government channels.
Federal Budget 2026–27: New Offset and Instant Deduction
The 2026–27 Federal Budget, handed down on 12 May 2026, announced two measures affecting individual income tax from future years: a new Working Australians Tax Offset and an instant work-related expense deduction. Neither changes the 2025–26 rates.
Announced measures
- A new Working Australians Tax Offset of up to AUD 250 for people with earned income, from the 2027–28 income year
- An instant deduction of up to AUD 1,000 for work-related expenses without itemising, from the 2026–27 income year
- No new changes to personal income tax rates were announced in the Budget
Effect
These measures apply from future income years. The 2025–26 financial year is unaffected, and the figures used by this calculator remain current.
Status
Budget announcements may require legislation before they take effect. Refer to the ATO for confirmed measures.
Lowest Marginal Rate to Fall to 15%, Then 14%
The ATO confirms two legislated tax cuts to the lowest marginal rate. The 16% rate that applies in 2024–25 and 2025–26 is set to reduce in the following two financial years.
The legislated path
- From 1 July 2026, the 16% rate on income between AUD 18,201 and AUD 45,000 reduces to 15%
- From 1 July 2027, that rate reduces further to 14%
- Senior and pensioner tax offset thresholds change from 2026–27 as a result
Effect on 2025–26
None. The 16% rate still applies for the current financial year. The cuts begin in 2026–27.
What this calculator uses
The 2025–26 rates, including the 16% lowest marginal rate.
HELP/HECS Moves to a Marginal Repayment System
From 1 July 2025, compulsory study and training loan repayments are calculated only on income above the threshold, rather than as a flat percentage of total income. The minimum repayment income for 2025–26 is AUD 67,000.
How the marginal system works
- No compulsory repayment on income up to AUD 67,000
- Between AUD 67,001 and 125,000: 15c for each AUD 1 over 67,000
- Between AUD 125,001 and 179,285: AUD 8,700 plus 17c for each AUD 1 over 125,000
- AUD 179,286 and over: 10% of total repayment income
ATO worked example
On AUD 80,000, the repayment is AUD 1,950 — 15% of the AUD 13,000 earned above the threshold.
Effect
Repayments are lower for most borrowers than under the previous whole-of-income system.
Tax Returns — Frequently Asked Questions
Common questions about how individual income tax works in Australia for 2025–26 — rates, levies, offsets, and lodging a tax return — verified against official ATO guidance.
Income tax is calculated on your taxable income, which is your assessable income less any allowable deductions. The resident rates are tiered, so different portions of income are taxed at different rates. For most residents, a 2% Medicare levy applies on top of the income tax.
ATO Resident Tax RatesThe tax-free threshold for Australian tax residents is AUD 18,200. No income tax applies to the first AUD 18,200 of taxable income. Foreign residents and working holiday makers do not receive the tax-free threshold.
ATO Resident Tax RatesYour marginal rate is the rate applied to your highest band of income. Your effective rate is the total tax divided by total income, which is lower because the earlier bands are taxed at lower rates. For example, a resident on AUD 90,000 has a 30% marginal rate but an effective rate of around 21.8% once the lower bands and Medicare levy are included.
ATO Resident Tax RatesTax residency is different from immigration status or citizenship. The ATO applies several tests, including where you reside and the duration and purpose of your stay. Residents are taxed on worldwide income and receive the tax-free threshold, while foreign residents are taxed only on Australian-sourced income and do not receive the threshold.
ATO Tax ResidencyA deduction reduces taxable income. The ATO sets three conditions for a work-related expense claim: the money was spent by the taxpayer and not reimbursed, the expense directly relates to earning income, and a record such as a receipt is held to prove it. Common categories include work-related expenses, donations to deductible gift recipients, and the cost of managing tax affairs.
ATO Deductions You Can ClaimFor Australian tax residents in 2025–26 (excluding the Medicare levy):
- 0 to AUD 18,200: nil
- AUD 18,201 to 45,000: 16c per AUD 1 over 18,200
- AUD 45,001 to 135,000: AUD 4,288 plus 30c per AUD 1 over 45,000
- AUD 135,001 to 190,000: AUD 31,288 plus 37c per AUD 1 over 135,000
- AUD 190,001 and over: AUD 51,638 plus 45c per AUD 1 over 190,000
The top marginal income tax rate for residents is 45%, applying to taxable income above AUD 190,000. The 2% Medicare levy applies in addition for most residents.
ATO Resident Tax RatesForeign residents do not receive the tax-free threshold and do not pay the Medicare levy. For 2025–26: 30c per AUD 1 up to AUD 135,000; AUD 40,500 plus 37c per AUD 1 between AUD 135,001 and 190,000; and AUD 60,850 plus 45c per AUD 1 above AUD 190,000.
ATO Foreign Resident RatesIncome earned on a 417 or 462 visa is taxed at 15% up to AUD 45,000, then at the foreign resident rates above that. There is no tax-free threshold and no Medicare levy for working holiday makers.
ATO Working Holiday MakersThe ATO confirms that the lowest marginal rate of 16% is legislated to fall to 15% from 1 July 2026 and to 14% from 1 July 2027. These changes apply to future income years and do not affect the 2025–26 figures shown here.
ATO New Tax CutsThe Medicare levy is 2% of taxable income for most residents, helping to fund the public health system. A reduction applies for low-income earners. For a single person with no dependants and no seniors offset, no levy is payable on taxable income up to AUD 28,011, phasing in up to AUD 35,013.
ATO Medicare LevyThe Medicare Levy Surcharge applies to residents without an appropriate level of private hospital cover whose income is above the thresholds. For a single person in 2025–26: no surcharge up to AUD 101,000; 1% between AUD 101,001 and 118,000; 1.25% between AUD 118,001 and 158,000; and 1.5% above AUD 158,000. Family thresholds differ.
ATO Medicare Levy SurchargeLITO is a non-refundable offset that reduces income tax payable for lower-income residents. The maximum is AUD 700 for taxable income up to AUD 37,500, then it tapers and reaches nil at AUD 66,667. LITO reduces income tax only and does not reduce the Medicare levy.
ATO Low Income Tax OffsetFrom 1 July 2025, compulsory study and training loan repayments use a marginal system applied only to income above the threshold. No repayment applies up to AUD 67,000; 15c per AUD 1 applies between AUD 67,001 and 125,000; AUD 8,700 plus 17c per AUD 1 between AUD 125,001 and 179,285; and 10% of total repayment income above AUD 179,286.
ATO Study and Training Loan RatesNo. A HELP or HECS compulsory repayment is calculated separately and is in addition to your income tax and Medicare levy. Deductions reduce your taxable income but do not directly reduce a compulsory study loan repayment, which is based on repayment income.
ATO Study and Training Loan RatesFor the 2025–26 income year, self-prepared returns are generally due by 31 October 2026. People who lodge through a registered tax agent often have a later due date. First-time or new tax-agent clients need to be registered with the agent before 31 October 2026 to be included in the lodgment program.
ATO Lodge with a registered tax agentThroughout the year, employers withhold tax from pay under the PAYG system. A tax return reconciles the total tax withheld against the tax assessed on your taxable income. If more was withheld than assessed, the difference is refunded. If less was withheld, an amount is payable.
ATO Your Tax ReturnMost individuals lodge online through myTax in ATO online services via myGov, or through a registered tax agent. The ATO pre-fills information such as salary, interest, and private health details, usually available from late July.
ATO How to LodgeKeep records that support the income you declare and the deductions you claim, such as payment summaries, receipts, and bank statements. The ATO generally requires records to be kept for five years from the date you lodge your return.
ATO Records You Need to KeepThe ATO offers payment plans for individuals who are unable to pay in full by the due date, and some plans can be set up online. Interest may apply to amounts paid late. Contacting the ATO before the due date is the process described in its guidance.
ATO Help With PayingImportant Disclaimer
For educational and informational purposes only. This calculator produces estimates of Australian income tax, the Medicare levy, the Low Income Tax Offset (LITO), HELP/HECS repayments and take-home pay based on the inputs provided and the ATO 2025–26 individual income tax rates, including the Stage 3 tax cuts effective from 1 July 2024. The Medicare levy is calculated at 2% for residents with a low-income reduction for singles, and the Medicare Levy Surcharge uses single-status thresholds. The calculator simplifies many aspects of the tax system and does not capture every offset, levy, rebate, or individual circumstance.
Not a complete tax assessment. Actual tax outcomes depend on factors not captured here — including the precise definition of repayment income for HELP/HECS (which can include reportable fringe benefits and net investment losses), family and Seniors and Pensioners Tax Offset (SAPTO) Medicare levy thresholds, family Medicare Levy Surcharge tiers, dependants, spouse income, foreign income, capital gains, franking credits, and any unusual income types. Foreign residents and working holiday makers are taxed under different scales and do not receive the tax-free threshold, LITO, or Medicare levy treatment available to residents.
No warranty of accuracy. While Money Snap takes reasonable care to source figures from official authorities (ATO, ASIC MoneySmart), this calculator is provided "as is" without any express or implied warranty as to accuracy, completeness, timeliness, or fitness for any particular purpose. Tax rates, thresholds, and rules change frequently — figures shown may be out of date, and individual circumstances not captured by the inputs may materially affect actual tax obligations and any refund or amount owing.
Not financial advice. Information provided is general in nature only and does not take into account your personal objectives, financial situation, or needs. Results are estimates and 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) or refer to the ATO directly.
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.
Official data sources
Figures are estimates for an Australian tax resident with private hospital cover and no study loan, including the Low Income Tax Offset and 2% Medicare levy. Rates from the ATO. Individual results vary with offsets, deductions, and other income.