Australian income tax,
plain English.
Stage 3 brackets, Medicare, PAYG withholding, deductions and tax returns — built on the live Australian Taxation Office schedule.
Individuals carry just over half the nation’s tax bill — $329.5 billion a year.
Australia taxes income in bands: the more you earn, the higher the rate on each slice. From 1 July 2026 the second bracket dropped from 16% to 15%, so almost every worker keeps a little more. It is worth modelling your own income tax on the new rate, checking the 2% Medicare levy on top, sizing up your work-from-home deductions, and seeing where a return lands before you lodge.
Where the Commonwealth’s tax comes from
Individuals shoulder just over half of every dollar the ATO collects. Company tax is the next-largest single source; GST, super fund tax and excise make up the rest — which is why a change to the second bracket reaches so many households.
All Tax & PAYG calculators
10 calculatorsIncome Tax Calculator
Calculate your income tax, Medicare levy and take-home pay.
Medicare Levy Calculator
Calculate your Medicare levy including low-income exemptions.
Medicare Levy Surcharge Calculator
Calculate the MLS if you don't hold private hospital cover.
Tax Return Estimator
Estimate your tax refund or liability after PAYG and deductions.
PAYG Withholding Calculator
Calculate weekly, fortnightly or monthly PAYG withholding from your salary.
Private Health Rebate Calculator
Calculate the income-tested government rebate on your health insurance.
Work From Home Deduction Calculator
Calculate your WFH deduction at 67 cents per hour.
Car Logbook Calculator
Compare the logbook method vs cents-per-km for your car deduction.
Salary Packaging Calculator
See the tax saving from packaging pre-tax benefits.
Contractor vs Employee Calculator
Compare after-tax income as a contractor versus an employee.
Australian Tax Calculators — 2026–27
Australia's tax system is progressive: the more you earn, the higher your marginal rate. For 2026–27, the tax-free threshold is $18,200 and the top marginal rate of 45% applies to income above $190,000. Understanding how much tax you actually owe — and the deductions available to reduce it — is the starting point for any effective personal finance strategy.
Income Tax and Medicare
The Income Tax Calculator applies the 2026–27 ATO tax brackets, the Low Income Tax Offset (LITO), and the Medicare levy to calculate your net take-home pay. The standard Medicare levy is 2% of taxable income, though low-income earners may be exempt or face a reduced levy — the Medicare Levy Calculator shows the exact amount. If you earn above $105,000 (singles) and don't hold private hospital cover, you'll also owe the Medicare Levy Surcharge of 1% to 1.5%.
PAYG and Tax Returns
Most employees have PAYG withholding deducted by their employer each pay period. The PAYG Withholding Calculator shows whether the right amount is being withheld, helping avoid a surprise bill at tax time. The Tax Return Estimator goes a step further, accounting for work-related deductions to estimate your refund or liability.
Deductions and Benefits
Work-related deductions are a legitimate way to reduce taxable income. The Work From Home Calculator applies the ATO's fixed rate of 67 cents per hour for 2026–27. If you use a car for work, the Car Logbook Calculator compares the logbook method against the simpler cents-per-km method (88 cents per km for 2026–27, up to 5,000 km). For employees with access to salary packaging — particularly those in the public sector, health, or NFP — the Salary Packaging Calculator quantifies the FBT-exempt benefit of packaging living expenses.