Australia Income Tax Calculator 2026-27
Calculate your income tax using official ATO tax brackets. Includes Medicare levy (2%), HELP/HECS student loan repayments and Medicare Levy Surcharge. Updated for the 2026-27 financial year with the new 15% tax bracket.
Australia Pay Calculator
Calculate income tax, Medicare levy, Medicare levy surcharge (optional) and HELP repayment (optional).
| Income tax | $17,520.00 |
| Medicare levy | $1,800.00 |
| Medicare levy surcharge (MLS) | $0.00 |
| HELP repayment | $0.00 |
| Total | $19,320.00 |
How the Income Tax Calculator Works
This income tax calculator uses the official ATO resident tax brackets for the selected financial year. Australia uses a progressive tax system, which means you pay higher rates on higher portions of your income — not on your entire salary.
ATO Tax Brackets 2026-27
- $0 – $18,200: Tax-free threshold (0%)
- $18,201 – $45,000: 15% (reduced from 16% in 2025-26)
- $45,001 – $135,000: 30%
- $135,001 – $190,000: 37%
- $190,001+: 45%
What's Included in the Calculation?
The calculator includes income tax (ATO marginal brackets), Medicare levy (2%), HELP/HECS repayment (optional), Medicare Levy Surcharge (optional), and the Low Income Tax Offset (LITO, up to $700). Superannuation is shown as an employer contribution on top of your salary.
Frequently Asked Questions
What is the tax-free threshold in Australia?
The tax-free threshold is $18,200 for Australian residents. You pay no income tax on the first $18,200 of your taxable income.
How is income tax calculated in Australia?
Income tax is calculated using progressive marginal tax brackets. Each bracket taxes only the portion of your income within that range, not your entire salary.
What is the Medicare levy?
The Medicare levy is 2% of your taxable income, used to fund Australia's public healthcare system. Low-income earners may be exempt.