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Income Tax Calculator 2025-26

Calculate your Australian income tax, Medicare levy and take-home pay for the 2025-26 financial year based on current ATO tax rates.

Updated 2025-26 FYData stays on your deviceATO sourced data

Disclaimer

This calculator provides estimates for general information purposes only. Results should not be relied upon as professional financial, tax, or legal advice. Tax rates and thresholds are based on publicly available ATO data and may change. Always consult a qualified tax agent or financial adviser for advice specific to your circumstances.

Frequently Asked Questions

What are the Australian tax brackets for 2025-26?
The 2025-26 tax brackets are: $0-$18,200 (nil), $18,201-$45,000 (16%), $45,001-$135,000 (30%), $135,001-$190,000 (37%), and $190,001+ (45%). These rates apply from 1 July 2025.
What is the tax-free threshold in Australia?
The tax-free threshold is $18,200. If you earn less than this amount, you don't pay any income tax. Australian residents can claim this threshold on their tax return.
How is the Medicare levy calculated?
The Medicare levy is 2% of your taxable income. If you earn below $26,000, you're exempt. Between $26,000 and $32,500, a reduced rate applies (10% of the excess over $26,000).
What is LITO (Low Income Tax Offset)?
LITO provides up to $700 in tax offset for low-income earners. It applies in full up to $37,500 and phases out between $37,500 and $66,667. You don't need to claim it — it's applied automatically.

What is Income Tax?

Income tax is a progressive tax on your earnings, meaning you pay higher rates on higher portions of your income. Australia uses a bracket system where different rates apply to different income ranges.

How this calculator works

This calculator applies the 2025-26 ATO tax brackets to your taxable income. It starts with the tax-free threshold ($18,200), then applies 16% on income up to $45,000, 30% up to $135,000, 37% up to $190,000, and 45% above that. The Low Income Tax Offset (LITO) of up to $700 is automatically applied if eligible. Medicare levy (2%) is added unless you earn below $26,000. The result shows your take-home pay after all deductions, broken down by week, fortnight, and month.

Updated for the 2025-26 financial year (1 July 2025 to 30 June 2026).

All calculations are performed in your browser — your data never leaves your device. Results are for general guidance only and should not be considered professional financial advice.

Built and maintained by Konstantin Iakovlev. Data sourced from the ATO and official Australian government sources.

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