Australian Income Tax Calculator (2025–26 & 2026–27): Stop Guessing Your ATO Bill

By Sash Denkovski, Principal Accountant at Adenix Accounting Sydney Updated: June 2026 · 6 min read

I think nobody actually likes thinking about tax. For most of us, the lead-up to 30 June is just a low-level hum of anxiety: "Am I getting a refund this year, or is the ATO about to hit me with a bill?"

Waiting until you lodge to find out is a terrible way to manage your money. So we put a free Australian income tax calculator right here on our site — plug in your income and see your take-home pay, Medicare levy and estimated tax in seconds. No jargon, no spreadsheets.

Calculator App right here!

Prefer to hand the shoebox of receipts to a professional? Book a free consultation with our Rockdale team

Australian Tax Brackets 2025–26 (Resident Rates)

Our calculator uses the official individual income tax brackets published by the Australian Taxation Office (ATO).

These are the current 2025–26 resident rates, which apply to income earned between 1 July 2025 and 30 June 2026. They reflect the Stage 3 tax cuts that took effect on 1 July 2024 — which lowered the 19% rate to 16%, the 32.5% rate to 30%, and lifted the 37% threshold from $120,000 to $135,000.

These are the rates your employer uses to work out PAYG withholding — the tax taken from each pay and sent to the ATO on your behalf. Your calculator estimate shows whether that withholding is likely to leave you with a refund or a bill at tax time.

Australian tax brackets (resident rates, 2025–26)

Taxable income	Marginal rate	Tax on this income
$0 – $18,200	0%	Nil
$18,201 – $45,000	16%	16c for each $1 over $18,200
$45,001 – $135,000	30%	$4,288 + 30c for each $1 over $45,000
$135,001 – $190,000	37%	$31,288 + 37c for each $1 over $135,000
$190,001+	45%	$51,638 + 45c for each $1 over $190,000

Two things to remember:

• Progressive system: Moving into a higher bracket doesn't mean all your income is taxed at that rate, only the dollars above each threshold.

• Add the Medicare levy: These rates are before the 2% Medicare levy, and before any deductions, offsets (like LITO) or HELP/HECS repayments, which change the final number.

When you enter your income, the tool gives you a reality check on your total tax payable, the 2% Medicare levy, and your true take-home pay, the cash that actually stays in your account.

Take-Home Pay by Salary (2025–26 Quick Reference)

Here's what common Sydney salaries look like after income tax and the 2% Medicare levy. Figures are estimates for an Australian resident claiming the tax-free threshold, before deductions, offsets or HECS.

Gross salary	Income tax	Medicare levy 2%	Total tax	Take-home pay
$60,000	$8,788	$1,200	$9,988	$50,012
$80,000	$14,788	$1,600	$16,388	$63,612
$85,000	$16,288	$1,700	$17,988	$67,012
$100,000	$20,788	$2,000	$22,788	$77,212
$120,000	$26,788	$2,400	$29,188	$90,812
$150,000	$36,838	$3,000	$39,838	$110,162
$200,000	$56,138	$4,000	$60,138	$139,862

Note: Earners under $66,667 may pay less than shown thanks to the Low Income Tax Offset (LITO). HECS/HELP debt, salary sacrifice and the Medicare Levy Surcharge will also change your result. For a precise figure, talk to us.

T$85,000 Salary After Tax in Australia (Worked Example)

Numbers are easier to digest with a real example. Here's a standard estimate for a Sydneysider earning $85,000 (excluding super):

• Gross annual income: $85,000

• Estimated income tax: $16,288

• Medicare levy (2%): $1,700

• Net income after tax: ~$67,012

Marginal rate vs effective rate, the bit most people get wrong: your marginal rate on $85,000 is 30% (plus 2% Medicare), but your effective rate ,total tax divided by total income, is only about 21.2%.

That's the whole point of a progressive system: a pay rise is never "eaten by tax," because only the dollars above each threshold are taxed at the higher rate. (On $100,000, the marginal rate is 30% but the effective rate is roughly 22.8%.)

This is your starting point. It doesn't factor in your work-related deductions, HECS/HELP debt, or crypto. If you've been trading digital assets, check our Crypto Tax Returns page, the ATO's data matching is cracking down hard this year.

What's Changing on 1 July 2026 (FY2026–27 Tax Cuts)

If you're planning ahead, this matters. From 1 July 2026, the second tax bracket drops from 16% to 15%. This change is now law, everyone earning above $45,000 gets the full benefit, a saving of up to $268 per year. A further cut to 14% is locked in from 1 July 2027.

Australian tax brackets 2026–27 (resident rates, from 1 July 2026):

Taxable income	Marginal rate 2026–27	Change vs 2025–26
$0 – $18,200	0%	No change
$18,201 – $45,000	15%	↓ from 16%
$45,001 – $135,000	30%	No change
$135,001 – $190,000	37%	No change
$190,001+	45%	No change

The brackets themselves don't move, only the second rate falls. So if you're comparing this year's return to next year's, expect a modest bump in take-home pay rather than a structural shake-up.

Non-Resident and Working Holiday Maker Tax Rates (2025–26)

The rates above are for Australian residents for tax purposes. If you're a foreign (non-)resident or on a working holiday visa, the rules are different , and our calculator's resident figures won't apply to you.

Foreign resident rates ( per the ATO), no tax-free threshold, no Medicare levy:

Taxable income	Rate
$0 – $135,000	30%
$135,001 – $190,000	37%
$190,001+	45%

Non-residents are taxed from the very first dollar, there's no $18,200 tax-free threshold, but they also don't pay the 2% Medicare levy.

Working holiday makers (visa subclasses 417 and 462): a flat 15% on the first $45,000 earned in Australia, then the foreign resident rates above $45,000.

Not sure which category you fall into? Residency for tax purposes isn't the same as your visa status, it depends on the ATO's residency tests. Get in touch and we'll work it out with you.

Key Australian Tax Dates for 2026

• 30 June 2026 — End of the 2025–26 financial year (EOFY). Last day to make deductible purchases, super contributions and prepayments that count toward this year's return.

• 1 July 2026 — Tax return lodgement opens for 2025–26. New FY2026–27 rates (15% second bracket) take effect.

• 31 October 2026 — Deadline to lodge your own 2025–26 return. Lodging through a registered tax agent like Adenix usually extends this well into 2027 — as long as you're on our books before 31 October.

How to Legally Reduce Your Tax Before 30 June (EOFY Tips)

Knowing your bill is good. Shrinking it is the goal. Here's what we tell clients as EOFY approaches:

Claim every deduction you're entitled to

If you spent your own money to earn your income, you can likely claim it. The ATO has strict rules, but union fees, protective clothing and working-from-home costs are standard. The golden rule: no receipt, no claim.

Prepay deductible expenses

Got spare cash in June? Prepaying up to 12 months of professional memberships, income protection insurance or business software before 30 June brings that deduction forward into this year's return.

Make a voluntary super contribution

A personal contribution to your super before EOFY is one of the smartest moves going. It builds retirement wealth and is usually tax-deductible (within the concessional cap). Win-win, just make sure the fund receives it before 30 June.

Frequently Asked Questions

Is this tax calculator accurate?

Yes , it's highly accurate as a baseline because it uses the official ATO formulas and 2025–26 brackets. Your final bill will differ once we apply your personal deductions and offsets. For a precise calculation that maximises your return, see our Individual Tax Returns service.

How much tax do I pay on $100,000 in Australia?

On a $100,000 salary in 2025–26, you'll pay roughly $20,788 in income tax plus a $2,000 Medicare levy, about $22,788 total, leaving around $77,212 take-home (before HECS, offsets or salary sacrifice).

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

The tax-free threshold is $18,200. You pay no income tax on the first $18,200 you earn. With the Low Income Tax Offset, the effective tax-free threshold rises to around $22,575.

When is the end of the financial year in Australia?

The 2025–26 financial year ends on 30 June 2026. You can lodge your tax return from 1 July 2026, and the self-lodgement deadline is 31 October 2026.

Does this calculator work if I run a business?

If you're a sole trader, it's a great way to estimate your personal income tax — but it won't calculate GST or BAS. For that, talk to our Small Business Accounting team.

What's the difference between my marginal tax rate and effective tax rate?

Your marginal rate is the tax on your next dollar of income (e.g. 30% if you earn $85,000). Your effective rate is your total tax divided by your total income, usually much lower (about 21% on $85,000). Only the dollars above each threshold are taxed at the higher rate, so a pay rise never leaves you worse off overall.

How much tax do non-residents and working holiday makers pay in Australia?

Foreign residents pay 30% from the first dollar (no tax-free threshold) up to $135,000, then 37% and 45%, but no Medicare levy. Working holiday makers (visa 417/462) pay a flat 15% on the first $45,000, then foreign resident rates above that. Note that tax residency depends on the ATO's residency tests, not your visa type.

Is this calculator ATO-approved?

The ATO doesn't "approve" third-party tools, but ours is fully compliant, it mirrors the exact tax brackets and Medicare levy formulas the Australian Government uses.

Stop Stressing and Start Planning

A tax calculator is brilliant for getting your bearings, but it's no substitute for an expert in your corner. Tax legislation changes constantly (the 1 July 2026 cuts are proof), and going it alone is how people end up paying thousands more than they need to.

At Adenix Accounting, we help Sydney locals and business owners cut through the red tape so you never pay a cent more than necessary.

Ready to sort your tax without the headache? Contact us today or call our Rockdale office on (02) 9599 1674 to book your free consultation.