Free Income Tax Calculator Australia (2026-27)
This income tax calculator shows how much tax and Medicare levy you pay on your salary this financial year, plus your effective and marginal tax rates.
2026-27 resident tax rates
| Taxable income | Tax on this income |
|---|---|
| $0 – $18,200 | Nil |
| $18,201 – $45,000 | 15c for each $1 over $18,200 |
| $45,001 – $135,000 | $4,020 plus 30% of the amount over $45,000 |
| $135,001 – $190,000 | $31,020 plus 37% of the amount over $135,000 |
| $190,001 and over | $51,370 plus 45% of the amount over $190,000 |
Income tax calculator example: tax on $90,000
| Band | Rate | Income in band | Tax |
|---|---|---|---|
| $0 – $18,200 | 0% | $18,200.00 | $0.00 |
| $18,200 – $45,000 | 15% | $26,800.00 | $4,020.00 |
| $45,000 – $135,000 | 30% | $45,000.00 | $13,500.00 |
| $135,000 – $190,000 | 37% | $0.00 | $0.00 |
| Over $190,000 | 45% | $0.00 | $0.00 |
| Low income tax offset | −$0.00 | ||
| Medicare levy (2%) | $1,800.00 | ||
| Total | $19,320.00 |
That is an effective rate of 21.5%, even though the top band reached is 30%.
Foreign residents and working holiday makers
Foreign residents pay 30% from the first dollar up to $135,000, have no tax-free threshold and do not pay the Medicare levy. Working holiday makers pay 15% on their first $45,000, then the resident rates above that. Choose your residency under "More options" in the calculator.
Medicare levy and surcharge
The Medicare levy is 2% of taxable income. Low-income earners pay less: a single person pays nothing up to $28,011, and the levy phases in at 10 cents per dollar until it reaches the full 2% (2025-26 thresholds; the ATO has not yet published 2026-27 figures). If you earn over $105,000 as a single and have no private hospital cover, you also pay the Medicare levy surcharge of 1% to 1.5%.
Frequently asked questions
What does this income tax calculator include?
This tax calculator applies the ATO's 2026-27 resident rates, the low income tax offset and the 2% Medicare levy to your salary. Under "More options" you can add a HELP debt, the Medicare levy surcharge, salary sacrifice, or foreign resident and working holiday maker rates.
What are the 2026-27 tax rates in Australia?
Nil up to $18,200; 15% from $18,201 to $45,000; 30% to $135,000; 37% to $190,000; and 45% above $190,000. The 2% Medicare levy is extra.
What changed from 1 July 2026?
The rate on income between $18,201 and $45,000 fell from 16% to 15%. Anyone earning $45,000 or more pays $268 less tax a year than in 2025-26; the thresholds did not change.
What is my marginal tax rate?
It is the rate on your next dollar of income. On $90,000 it is 30% plus the 2% Medicare levy, so 32 cents of each extra dollar goes in tax. Your average (effective) rate is much lower because the first $18,200 is tax-free and the next band is taxed at 15%.
What is the tax-free threshold in Australia?
$18,200. Australian residents pay no income tax on the first $18,200 of taxable income each year. Non-residents have no tax-free threshold.
How is income tax calculated in Australia?
Each slice of your taxable income is taxed at the rate for its bracket, so a higher rate only applies to the dollars above that threshold. The low income tax offset is then taken off, and the 2% Medicare levy is added. This income tax calculator does all three steps.
Sources
- ATO: Tax rates – Australian residents
- ATO: Medicare levy reduction for low-income earners
- ATO: Low income tax offset
- ATO: Medicare levy surcharge income thresholds and rates
- ATO: Study and training support loans – repayment thresholds and rates
- ATO: Super guarantee rate and maximum contribution base
- ATO: Contributions caps
- ATO: Tax rates – foreign residents
- ATO: Schedule 15 – working holiday makers