Income Tax Calculator
Work out Australian income tax, Medicare levy, HELP repayments and take-home pay for 2026–27 using the ATO rates, with every step shown.
Take-home pay per year
$67,280.00On a $85,000 salary in 2026–27, an Australian resident takes home $67,280.00 per year after $16,020.00 income tax and $1,700.00 Medicare levy, with $10,200.00 super paid on top.
| Gross pay per year | $85,000.00 |
|---|---|
| Income tax | −$16,020.00 |
| Medicare levy | −$1,700.00 |
| Take-home pay per year | $67,280.00 |
| Employer super (12%, on top) | +$10,200.00 |
Marginal rate 30% · effective rate 20.8% of taxable income
How this was calculated (2026–27, annual)
| Gross salary (excluding super) | $85,000.00 |
|---|---|
| Nil on the first $18,200 | $0.00 |
| 15% on $18,201 – $45,000($45,000 − $18,200) × 15% | $4,020.00 |
| 30% on $45,001 – $135,000($85,000 − $45,000) × 30% | $12,000.00 |
| Medicare levy 2%$85,000 × 2% | $1,700.00 |
| Employer super guarantee 12% (paid on top, not deducted) | $10,200.00 |
Annual figures divided by 1 for the per-year amounts. Employer PAYG withholding uses the ATO withholding schedules, which approximate the low income tax offset, and can differ by up to about $12 a fortnight at lower incomes; it is settled in the tax return.
On a $85,000 salary in 2026–27, an Australian resident takes home $67,280.00 per year after $16,020.00 income tax and $1,700.00 Medicare levy, with $10,200.00 super paid on top.
Source: ATO Last verified How we keep this accurate
Key facts for 2026–27
- Tax-free threshold: $18,200 for Australian residents
- Tax rates: 15% $18,201–$45,000; 30% $45,001–$135,000; 37% $135,001–$190,000; 45% over $190,000
- Second bracket: 15% on $18,201–$45,000 (was 16% in 2025–26)
- Medicare levy: 2% of taxable income; nil up to $28,011 (single), reduced up to $35,013
- Low income tax offset: Up to $700, cutting out at $66,667
- HELP repayments: Nil up to $69,528; 15% of income above it; 17% above $129,717; capped at 10%
- Super guarantee: 12% of ordinary time earnings, paid by the employer on top of salary
Financial year 2026–27 runs 1 July 2026 to 30 June 2027. Last verified 24 September 2026. Source: ATO — Tax rates – Australian resident / foreign resident.
| Item | 2026–27 |
|---|---|
| Tax-free threshold | $18,200 for Australian residents |
| Tax rates | 15% $18,201–$45,000; 30% $45,001–$135,000; 37% $135,001–$190,000; 45% over $190,000 |
| Second bracket | 15% on $18,201–$45,000 (was 16% in 2025–26) |
| Medicare levy | 2% of taxable income; nil up to $28,011 (single), reduced up to $35,013 |
| Low income tax offset | Up to $700, cutting out at $66,667 |
| HELP repayments | Nil up to $69,528; 15% of income above it; 17% above $129,717; capped at 10% |
| Super guarantee | 12% of ordinary time earnings, paid by the employer on top of salary |
How income tax is calculated in Australia for 2026–27
Australian income tax is marginal: each slice of income is taxed at its own rate, and only the slice above a threshold is taxed at the higher rate. This is how the calculator works it out for the 2026–27 financial year (1 July 2026 to 30 June 2027):
- Start with taxable income. For a salary earner with no deductions, that is gross salary excluding employer super.
- Apply the resident brackets. Nil on the first $18,200, then 15% up to $45,000, 30% up to $135,000, 37% up to $190,000 and 45% above that.
- Subtract the low income tax offset (LITO). Up to $700, tapering to nil at $66,667. It can bring tax to zero but is never refunded.
- Add the Medicare levy. 2% of taxable income, with nil or a reduced levy below the low-income thresholds.
- Add HELP repayments if there is a study loan. 15% of repayment income over $69,528, 17% over $129,717, capped at 10% of income.
- Take-home pay is taxable income less income tax, Medicare levy and HELP. Employer super at 12% is paid on top.
Australian income tax rates 2026–27
According to the ATO’s resident tax rates page, these rates apply to Australian residents for 2026–27. They exclude the 2% Medicare levy.
| Taxable income | Rate | Tax on this income |
|---|---|---|
| $0 – $18,200 | 0% | Nil |
| $18,201 – $45,000 | 15% | 15c for each $1 over $18,200 |
| $45,001 – $135,000 | 30% | $4,020 plus 30c for each $1 over $45,000 |
| $135,001 – $190,000 | 37% | $31,020 plus 37c for each $1 over $135,000 |
| $190,001 and over | 45% | $51,370 plus 45c for each $1 over $190,000 |
The only change from 2025–26 is the second bracket: 16 cents per dollar became 15 cents from 1 July 2026 under the Treasury Laws Amendment (More Cost of Living Relief) Act 2025. The same Act lowers it again to 14 cents from 1 July 2027. Every other threshold and rate is unchanged.
How much tax do I pay on $85,000 in Australia?
On an $85,000 salary in 2026–27, an Australian resident pays $16,020.00 income tax and $1,700.00 Medicare levy, a total of $17,720.00, and takes home $67,280.00 a year ($1,293.85 a week, $2,587.70 a fortnight, $5,606.66 a month). The marginal rate is 30% and the effective rate is 20.8%.
The working: nil on the first $18,200; 15% on the next $26,800 ($4,020); 30% on the $40,000 between $45,000 and $85,000 ($12,000); total $16,020.00. LITO is nil above $66,667. Medicare is 2% of $85,000. With a HELP debt, add $2,320.80 (15% of income above $69,528), leaving $64,959.20.
How much is the Medicare levy?
The Medicare levy is 2% of taxable income for most residents. Low-income earners pay nothing up to a lower threshold and a reduced levy (10 cents per dollar above the threshold) until it meets the full 2% at the upper threshold.
| Taxpayer | No levy up to | Full 2% levy from |
|---|---|---|
| Single, no dependants | $28,011 | $35,014 |
| Single senior or pensioner (SAPTO eligible) | $44,268 | $55,336 |
| Family (plus $4,338 per dependent child) | $47,238 | Phases in at 10c per $1 above |
Thresholds for a financial year are usually legislated after the following federal budget, so the 2025–26 thresholds apply for 2026–27 until new ones pass. The Medicare levy surcharge for higher earners without private hospital cover is separate and is not included here.
How do HELP repayments affect take-home pay?
Compulsory repayments for HELP, VET Student Loans and other study loans are marginal from 2025–26 onward, so only income above the threshold attracts a repayment.
| Repayment income | Repayment |
|---|---|
| $0 – $69,528 | Nil |
| $69,529 – $129,717 | 15c for each $1 over $69,528 |
| $129,718 – $186,051 | $9,028 plus 17c for each $1 over $129,717 |
| $186,052 and over | 10% of total repayment income |
Repayment income is taxable income plus reportable fringe benefits, reportable super contributions, net investment losses and exempt foreign employment income. For a salary earner with none of those, it equals taxable income, which is what the calculator uses.
Is super included in my salary?
Under the super guarantee, employers pay 12% of ordinary time earnings into your fund on top of salary. It is not part of taxable income and is not deducted from take-home pay. If a job offer quotes a package “including super”, tick the box and the calculator divides by 1.12 to find the salary before working out tax. Super is taxed inside the fund at 15% on the way in, which is not shown here.
Worked examples: tax on common salaries in 2026–27
Every row is generated by the same engine as the calculator, so the figures are consistent with the result above. Australian resident, single, no HELP debt, no deductions.
| Annual salary | Gross per year | Income tax | Medicare | Take-home per year | Take-home per year |
|---|---|---|---|---|---|
| $30,000 | $30,000.00 | $1,070.00 | $198.90 | $28,731.10 | $28,731.10 |
| $45,000 | $45,000.00 | $3,695.00 | $900.00 | $40,405.00 | $40,405.00 |
| $60,000 | $60,000.00 | $8,420.00 | $1,200.00 | $50,380.00 | $50,380.00 |
| $75,000 | $75,000.00 | $13,020.00 | $1,500.00 | $60,480.00 | $60,480.00 |
| $85,000 | $85,000.00 | $16,020.00 | $1,700.00 | $67,280.00 | $67,280.00 |
| $100,000 | $100,000.00 | $20,520.00 | $2,000.00 | $77,480.00 | $77,480.00 |
| $120,000 | $120,000.00 | $26,520.00 | $2,400.00 | $91,080.00 | $91,080.00 |
| $150,000 | $150,000.00 | $36,570.00 | $3,000.00 | $110,430.00 | $110,430.00 |
| $200,000 | $200,000.00 | $55,870.00 | $4,000.00 | $140,130.00 | $140,130.00 |
Two points of comparison: on $60,000, take-home pay is $50,380.00, which is $268 more than in 2025–26 ($50,112.00). On $150,000, income tax is $36,570.00 and the marginal rate is 37%, but the effective rate across all income is 26.4%.
Tax for foreign residents
Foreign residents for tax purposes have no tax-free threshold, don’t pay the Medicare levy and can’t claim LITO. Working holiday makers have their own rates and are not covered by this calculator.
| Taxable income | Rate | Tax on this income |
|---|---|---|
| $0 – $135,000 | 30% | 30c for each $1 over $0 |
| $135,001 – $190,000 | 37% | $40,500 plus 37c for each $1 over $135,000 |
| $190,001 and over | 45% | $60,850 plus 45c for each $1 over $190,000 |
What this calculator doesn’t include
- Deductions (work expenses, donations, income protection) and other offsets such as the seniors and pensioners tax offset or private health rebate.
- The Medicare levy surcharge, family Medicare thresholds and spouse income.
- Salary sacrifice, reportable fringe benefits and investment income or losses.
- Working holiday maker rates, and PAYG withholding rounding from the ATO tax tables.
Frequently asked questions
How much tax do I pay on $85,000 in Australia in 2026–27?
An Australian resident on $85,000 pays $16,020 income tax and $1,700 Medicare levy in 2026–27, a total of $17,720, leaving $67,280 a year or $1,293.85 a week. The marginal rate is 30% and the effective rate is 20.8%. A HELP debt adds a $2,320.80 compulsory repayment. Employer super of $10,200 is paid on top.
What are the Australian income tax rates for 2026–27?
For residents in 2026–27: nil on the first $18,200; 15 cents per dollar from $18,201 to $45,000; 30 cents from $45,001 to $135,000; 37 cents from $135,001 to $190,000; and 45 cents above $190,000. The Medicare levy of 2% is on top. The second-bracket rate fell from 16% to 15% on 1 July 2026 and is legislated to fall to 14% on 1 July 2027.
What is the tax-free threshold in Australia?
Australian residents pay no income tax on the first $18,200 of taxable income in 2026–27. With the low income tax offset, a resident can earn up to about $22,866 before any income tax is owed, though the Medicare levy starts phasing in above $28,011. Foreign residents have no tax-free threshold and are taxed from the first dollar at 30%.
Does this calculator include the Medicare levy?
Yes. The Medicare levy is 2% of taxable income and is shown as its own line. Singles pay nothing up to $28,011 and a reduced levy up to $35,013 (the 2025–26 thresholds, which apply until 2026–27 thresholds are legislated). The Medicare levy surcharge for higher earners without private hospital cover is not included, since it depends on family status and insurance.
How are HELP and HECS repayments calculated in 2026–27?
Since 1 July 2025, compulsory repayments are marginal, like income tax. In 2026–27 nothing is repaid on repayment income up to $69,528; 15 cents per dollar is repaid between $69,529 and $129,717; 17 cents per dollar above $129,717; and the total is capped at 10% of repayment income, which bites from $186,051. Tick the HELP box to include the repayment.
Is superannuation included in the income I enter?
Enter your salary excluding super unless your offer or payslip quotes a package that includes it, in which case tick the box and the calculator strips out the 12% super guarantee before working out tax. Employer super is not taxed as part of your income and is not deducted from take-home pay; it goes to your fund and is shown separately.
Why is the result different from my tax return or payslip?
This calculator assumes a single taxpayer with only salary income and no deductions, other offsets or private health details. Your tax return adds deductions, investment income, other offsets and the Medicare levy surcharge. Your payslip uses the ATO withholding schedules, which approximate the low income tax offset and Medicare phase-in, so it can differ by up to about $12 a fortnight at lower incomes and within a dollar or two above $85,000; the difference is settled in the tax return.
How much less tax do I pay in 2026–27 than in 2025–26?
The only rate change is the second bracket dropping from 16% to 15%. That is worth 1 cent per dollar between $18,200 and $45,000, so anyone earning $45,000 or more pays $268 less income tax in 2026–27 than in 2025–26, about $5.15 a week. People earning between $18,200 and $45,000 save less, in proportion to income above $18,200.
Sources and assumptions
- ATO — Tax rates for Australian residents — resident income tax brackets 2026–27
- ATO — Tax rates for foreign residents
- ATO — Low income tax offset
- ATO — Medicare levy reduction for low-income earners — 2025–26 thresholds apply until 2026–27 thresholds are legislated
- ATO — Study and training loan repayment thresholds and rates
- ATO — Super guarantee percentage
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