Australia Tax Calculator 2026

Calculate ATO income tax with official rates, Medicare levy, and HECS/HELP repayments

Updated: January 2026 | 2025-26 Financial Year

Australia Tax Summary 2025-26

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Tax Rates: 0% to 45% (progressive)
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Medicare Levy: 2% of income
✂️
Tax-Free: First AUD 18,200
📅
Tax Year: 1 July - 30 June
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HECS Threshold: AUD 54,435
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Super: 11.5% employer contribution

Calculate Your ATO Tax Liability

Enter your income for accurate 2025-26 Australian tax calculations

Using AUD | Progressive brackets | Medicare levy included | ATO compliant

ATO Tax Brackets 2025-26 (Stage 3 Tax Cuts)

The Stage 3 tax cuts reduced the 32.5% rate to 30% and extended thresholds. Here are the current brackets.

Taxable Income Tax Rate Tax on This Bracket
$0 - $18,200 0% Nil
$18,201 - $45,000 16% $4,288
$45,001 - $135,000 30% $27,000
$135,001 - $190,000 37% $20,350
$190,001+ 45% 45c per $1 over $190,000

HECS-HELP Repayment Rates 2025-26

If you have a HECS-HELP, FEE-HELP, or other study loan, compulsory repayments apply once your income exceeds the threshold.

Repayment Threshold

AUD 54,435
No repayment below this

At $60,000 Income

2%
$1,200/year repayment

At $100,000 Income

6%
$6,000/year repayment

Maximum Rate

10%
At $151,201+ income
HECS Tip: HECS-HELP repayments are calculated on your total income, not just your salary. Voluntary repayments can be made at any time. The debt is indexed annually to CPI (not interest-bearing in the traditional sense).

Medicare Levy & Surcharge

The Medicare levy funds Australia's public healthcare system. Low-income earners may qualify for exemptions.

Medicare Levy

2%
Of taxable income
Exemption threshold: Under $26,000

Medicare Levy Surcharge

1% - 1.5%
If no private health insurance
Applies: Single $93,000+ | Family $186,000+

Australia Tax Calculation Examples 2025-26

See how Australian income tax, Medicare levy, and HECS apply to different income levels

Entry Level Graduate

AUD 55,000
Gross Income $55,000
Income Tax -$7,288
Medicare Levy (2%) -$1,100
HECS (2% if applicable) -$1,100
Net Income $45,512
Effective Rate: ~17.3% | + Super: $6,325 (11.5%)

Mid-Career Professional

AUD 95,000
Gross Income $95,000
Income Tax -$19,288
Medicare Levy (2%) -$1,900
HECS (5% if applicable) -$4,750
Net Income $69,062
Effective Rate: ~27.3% | + Super: $10,925 (11.5%)

Senior Professional

AUD 150,000
Gross Income $150,000
Income Tax -$37,838
Medicare Levy (2%) -$3,000
HECS (8% if applicable) -$12,000
Net Income $97,162
Effective Rate: ~35.2% | + Super: $17,250 (11.5%)
Note: These examples include HECS repayments where applicable. If you don't have a HECS debt, your take-home will be higher. Super contributions are paid by your employer on top of your salary.

Frequently Asked Questions

What are the Australian income tax rates for 2025-26?

Australia has 4 progressive tax brackets for 2025-26 following the Stage 3 tax cuts: 0% on income up to $18,200 (tax-free threshold), 16% from $18,201 to $45,000, 30% from $45,001 to $135,000, 37% from $135,001 to $190,000, and 45% on income above $190,000. The previous 32.5% bracket has been reduced to 30% with an extended threshold.

What is the Medicare Levy in Australia?

The Medicare Levy is 2% of your taxable income and funds Australia's public healthcare system. Low-income earners (below approximately $26,000) may qualify for a reduction or exemption. If you earn above $93,000 (single) or $186,000 (family) and don't have private hospital cover, you may also pay the Medicare Levy Surcharge of 1-1.5%.

How does HECS-HELP repayment work in Australia?

If you have a HECS-HELP study loan, compulsory repayments begin once your income exceeds $54,435 (2025-26). The repayment rate starts at 1% and increases with income up to 10% at $151,201+. For example, at $80,000 income, you'd repay 4% ($3,200/year). The debt is indexed to CPI annually, not traditional interest. Voluntary repayments can be made anytime.

What is superannuation in Australia?

Superannuation (super) is Australia's compulsory retirement savings system. Employers must contribute 11.5% of your ordinary earnings into your super fund (increasing to 12% from July 2025). This is on top of your salary. Super contributions are taxed at 15% within the fund, and you generally can't access it until preservation age (currently 60 for most people).

When is the tax return deadline in Australia?

The Australian tax year runs from July 1 to June 30. Tax returns for the 2025-26 financial year are due by October 31, 2026 if you're self-lodging through myGov. If you use a registered tax agent and register with them by October 31, you may get an extended deadline up to May 15, 2027, depending on your circumstances.

Do working holiday visa holders pay different tax rates?

Yes, working holiday makers (subclass 417 and 462 visa holders) have special tax rates regardless of residency status. They pay 15% on the first $45,000 of income, then 30% from $45,001 to $135,000, and standard rates above that. This applies to income from an employer registered with the ATO as a working holiday maker employer.

How do I calculate my Australian income tax?

To calculate Australian income tax: 1) Apply the progressive tax rates (0%-45%) based on your taxable income. 2) Add Medicare Levy (2% of taxable income). 3) If applicable, add HECS-HELP repayment (1%-10% based on income). Note that employer super (11.5%) is additional to your salary, not deducted from it. Use our ATO tax calculator above for instant calculations.

Compare Australia with Other Countries

See how Australia's tax system compares to other destinations

Data Source: ATO (Australian Taxation Office)

Verified for 2025-26 Financial Year | ATO rates | Last updated: January 2026

This calculator provides estimates based on official ATO rates and 2025-26 tax brackets. For personalized tax advice regarding deductions, offsets, or complex situations, consult a registered Australian tax agent.