Ask "how much tax do I pay?" and you get two answers. A bracket table gives you a rough estimate. Running your actual numbers gives you your actual answer. The Income Tax Calculator does the second.
Run your numbers first. Then come back here to understand what each line means.
General information only. This article does not constitute financial advice. Tax obligations vary based on individual circumstances. Refer to the ATO or a registered tax agent for advice specific to your situation.
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Rates current as at 17 August 2026. Source: Australian Taxation Office (ato.gov.au).
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The brackets that apply right now
Australia's tax system is progressive — you pay a higher rate only on dollars that fall inside each band, not on everything you earn. For 2026–27, the rates for Australian residents are:
| Taxable Income | Rate | Tax Payable |
|---|---|---|
| $0 – $18,200 | 0% | Nil |
| $18,201 – $45,000 | 15% | 15c per $1 over $18,200 |
| $45,001 – $135,000 | 30% | $4,020 + 30c per $1 over $45,000 |
| $135,001 – $190,000 | 37% | $31,020 + 37c per $1 over $135,000 |
| $190,001+ | 45% | $51,370 + 45c per $1 over $190,000 |
Source: ATO — ato.gov.au
These are the post-Stage 3 rates since 1 July 2024, with a further refinement from 1 July 2026. Not estimates. The legislated rates that apply to your 2026–27 income today.
The calculator applies them straight. Every dollar is taxed at the rate for its band. Bands add up. That gives you income tax before deductions, offsets, or the Medicare levy.
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What changed on 1 July 2026
Two rounds of tax cuts in two years. The first — the Stage 3 cuts, from 1 July 2024 — reshaped the whole bracket structure. The old 19% rate dropped to 16%. The 32.5% rate dropped to 30%. The 37% threshold shifted up from $120,000 to $135,000. The 45% threshold moved from $180,000 to $190,000.
The second cut was smaller. The 16% rate on income between $18,201 and $45,000 dropped to 15% from 1 July 2026. For someone earning $45,000 or more, that's worth up to $268 per year compared with 2025–26.
This isn't ancient history. The second cut is less than two months old. If your tax calculator isn't updated for FY 2026–27, you're almost certainly overstating your liability.
The AusCalcs Income Tax Calculator reflects both cuts. The bracket table is live. Rates are confirmed against the ATO. The result you see is the 2026–27 number.
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The Medicare levy — and when it's more than 2%
Income tax and the Medicare levy are separate lines on your tax assessment, but most calculators bundle them into one "total tax" figure. Understanding what each one is matters.
The Medicare levy is a 2% charge on your taxable income. It funds the public health system. Most Australian tax residents pay the full amount. Low-income earners below roughly $28,000 may be exempt or pay a reduced rate; the threshold shifts each year.
The Medicare levy surcharge is separate and additional — between 1% and 1.5% — and applies to higher earners without adequate private hospital insurance. For singles, it starts at incomes above $105,000. For families, the threshold is higher. The surcharge only applies if you don't have qualifying private health cover.
The practical upshot: earn $120,000 without private hospital insurance, and you're not just paying the 2% levy. You're paying up to 3.5% in Medicare-related charges on top of income tax. If your current private health policy qualifies, you pay the levy and stop there.
The Medicare Levy Calculator shows which scenario applies to you. Takes less than a minute. The difference can be more than $1,500 per year.
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A worked example: $100,000 in 2026–27
Here's the actual arithmetic for a resident individual earning $100,000 in taxable income with no deductions or offsets beyond the standard tax-free threshold, paying the full 2% Medicare levy:
Income tax:
- $0 – $18,200: $0
- $18,201 – $45,000: $4,020 (15% on $26,800)
- $45,001 – $100,000: $16,500 (30% on $55,000)
- Total income tax: $20,520
Medicare levy:
- 2% × $100,000 = $2,000
Total tax: $22,520
Take-home pay: $77,480 per year, or approximately $1,490 per week
This matches the number the Income Tax Calculator returns when you enter $100,000. No rounding. No averaging. Your input produces your output.
Compare that to the pre-2024 brackets: the same $100,000 would have attracted approximately $24,700 in income tax. The Stage 3 cuts saved this earner around $2,179 per year. The additional 1% cut from July 2026 adds another $268, bringing the total saving versus the old structure to roughly $2,447 annually.
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Effective rate versus marginal rate — where the confusion lives
Most people confuse effective tax rate with marginal rate. When someone says "I'm on the 30% bracket," they usually don't mean they pay 30 cents in every dollar. They mean their top marginal rate is 30%.
The marginal rate is the rate on your next dollar of income. If your taxable income is $60,000, your marginal rate is 30%. Any extra income — a bonus, a side gig, rental payments — gets taxed at 30 cents in the dollar at that point.
The effective rate is total tax divided by total income. At $60,000, you pay roughly $9,020 in income tax — an effective rate of about 15.0%. Substantially lower than the 30% marginal rate, because the tax-free threshold and the 15% band on income below $45,000 bring the average down.
Why does this matter?
PAYG withholding. Your employer withholds tax from each pay cycle based on a formula that approximates your annual liability. Side income or a lump-sum payment triggers additional withholding at your marginal rate — not your effective rate. Understanding the difference helps you plan for the tax bill at lodgement time instead of being blindsided.
Deductions. Every dollar of deduction reduces your taxable income. The value of that deduction is your marginal rate. At 30%, a $1,000 deductible expense saves you $300 in tax. At 37%, it saves $370. The higher your marginal rate, the more valuable legitimate deductions become. That's why the Tax Return Estimator asks for your deductions before it gives you a number.
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Why the calculator beats a bracket table
A bracket table tells you the rates. It cannot tell you what they mean for your income, your offset entitlements, your Medicare position, or your PAYG situation. The calculator does all of that.
Here's the broader point: in 2026, an AI can summarise a great deal of financial information — a paragraph or two that gives you a general sense. The bracket table in this article is a good example of something an AI Overview can reproduce accurately.
What it cannot do is take your income — $73,500, not $75,000 or $80,000, yours — apply your specific offsets, account for your Medicare surcharge status, and return your number. That needs a tool that runs your inputs. The AusCalcs Income Tax Calculator does that without requiring a sign-up, a subscription, or a conversation with a chatbot working from last year's rates.
The result is yours. Calculated, not estimated. Current, not approximate. A receipt you can use for a salary negotiation, a salary sacrifice arrangement, or a conversation with your accountant.
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What the calculator does not include
The income tax calculator shows your gross tax liability before several items that may change your final bill:
Offsets: The Low Income Tax Offset (LITO) and the Low and Middle Income Tax Offset (LMITO, which expired in FY 2022–23) reduce the amount of tax you pay. The LITO applies to taxable incomes below $66,667 and can reduce your tax liability by up to $700. The calculator includes standard LITO calculations — check the result panel for the breakdown.
Deductions: Work-related expenses, charitable donations, investment expenses, and other allowable deductions reduce your taxable income before the brackets apply. If you have deductions to claim, enter your taxable income (after deductions), not your gross income.
HECS-HELP repayments: Once your income exceeds the minimum repayment threshold, the ATO requires compulsory repayments on any HECS-HELP or other student loan debt. These aren't income tax — they're a separate withholding — but they reduce your take-home pay the same way. Use the HECS Repayment Calculator separately to see your compulsory repayment amount.
Super: Employer compulsory super contributions (12% of ordinary time earnings as of 1 July 2025) are paid on top of salary and taxed separately inside the super fund at 15% — not at your marginal rate. Your taxable income figure should be your salary before super, unless your package is stated as a total package inclusive of super.
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Frequently asked questions
What are the Australian tax brackets for 2026–27? The brackets are: $0–$18,200 (0%), $18,201–$45,000 (15%), $45,001–$135,000 (30%), $135,001–$190,000 (37%), $190,001+ (45%). The 2% Medicare levy applies on top for most taxpayers. Source: ATO.
How much tax do I pay on $100,000 in Australia? On $100,000 taxable income in 2026–27, you pay approximately $20,520 in income tax plus $2,000 in Medicare levy — a total of $22,520, leaving take-home pay of about $77,480 per year or $1,490 per week.
What is the tax-free threshold in Australia? The tax-free threshold is $18,200. You pay no income tax on the first $18,200 you earn each financial year. This applies to Australian residents for tax purposes only — non-residents pay tax from the first dollar at 32.5%.
What changed with the Stage 3 tax cuts? From 1 July 2024, the 19% bracket dropped to 16%, the 32.5% bracket dropped to 30%, the 37% threshold moved from $120,000 to $135,000, and the 45% threshold moved from $180,000 to $190,000. From 1 July 2026, the remaining 16% bracket was cut further to 15% — worth up to $268 per year for eligible earners.
Do I need to pay the Medicare levy surcharge? The surcharge (1–1.5%) applies to single earners above $105,000 who do not hold qualifying private hospital cover. Use the Medicare Levy Calculator to check whether it applies to you.
Is super included in taxable income? No. Compulsory employer super contributions are paid separately and taxed at 15% inside your fund. Your taxable income is your salary, not your total package including super — unless your contract specifies a total package figure.