Income Tax & Take-Home Pay Calculator
Work out your annual and per-pay take-home pay for 2025-26, with the Medicare levy, HECS/HELP and the 2026-27 tax cut all built in.
The straight answer
Type your salary, get the number that actually hits your bank account — Medicare levy, HECS and the 2026-27 tax cut included. Your marginal rate is what your next dollar loses; your effective rate is what you actually pay, and it's always lower.
Estimate only — general information, not financial or tax advice. Figures are indicative; confirm with the ATO or a registered tax agent.
What this calculator does
This tool turns a gross salary into the number that actually lands in your bank account.
Everything it layers in
It applies the official Australian Taxation Office (ATO) marginal tax brackets for the 2025-26 financial year, adds the 2% Medicare levy, subtracts the Low Income Tax Offset where you qualify, and then optionally layers on a HECS/HELP study-loan repayment and the Medicare Levy Surcharge. It splits the result across your chosen pay cycle and shows the 2026-27 tax cut side by side, so you can see exactly how much the legislated rate change is worth to you.
Exactly how it is calculated
| Income slice (2025-26, resident) | Rate |
|---|---|
| First $18,200 | Nil (tax-free threshold) |
| $18,201 – $45,000 | 16% |
| $45,001 – $135,000 | 30% |
| $135,001 – $190,000 | 37% |
| Above $190,000 | 45% |
Australia runs a progressive marginal system. Your taxable salary is cut into slices and each slice is taxed at its own rate — not your whole income at the top rate.
The calculator adds each slice together to get your base income tax.
- Slice the salary each bracket taxed at its own rate
- Add the Medicare levy 2% of taxable income
- Subtract LITO up to $700 back on low incomes
- Add HECS/HELP marginal repayments from $67,000, if ticked
- Add the MLS 1–1.5% if no hospital cover, higher incomes
The point: a pay rise only taxes the extra slice — it can't shrink your take-home.
The Medicare levy and LITO, in detail
On top of the sliced tax sits the Medicare levy of 2% of taxable income, which helps fund the public health system. Low earners pay a reduced levy that phases in gradually rather than switching on all at once. Next, the Low Income Tax Offset (LITO) reduces your tax bill by up to $700 for incomes at or below $37,500, tapering away to zero by $66,667 — an offset can only cut tax to zero, it never becomes a cash refund on its own.
HECS/HELP and the Medicare Levy Surcharge, in detail
If you carry a study debt, the compulsory HECS/HELP repayment is added. From 1 July 2025 this moved to a marginal scale: nothing below $67,000, then 15 cents per dollar between $67,000 and $125,000, then $8,700 plus 17 cents per dollar between $125,000 and $179,285, and 10% of your total income above that. Finally, if you do not hold private hospital cover and earn above the singles threshold, the Medicare Levy Surcharge (MLS) adds 1% to 1.5% of your income — a deliberate nudge towards taking out private cover.
Super, and why it is not take-home pay
Your contract says "$90,000". That can mean two different things:
Salary excludes super
- Employer pays the 12% guarantee on top
- The full $90,000 is taxable
Salary includes super (package)
- Super is stripped out of the figure first
- Only about $80,357 is taxable
Superannuation is money your employer pays into your retirement fund, not into your wallet, so it is never part of take-home pay.
Why the toggle changes the answer
The catch is that "$90,000" can mean two different things. If your salary excludes super, your employer pays the 12% guarantee on top, and your taxable salary is the full $90,000. If your package includes super, the calculator strips the super out first, so your taxable salary is lower. Use the toggle to match your contract — it changes the answer noticeably.
The 2026-27 tax cut
On 1 July 2026 the 16% bracket drops to 15% — automatically.
Where the $268 comes from
Under the legislated Treasury Laws Amendment (Cost of Living Tax Cuts) Act 2024, the second bracket drops from 16% to 15% on 1 July 2026. Because that bracket spans $18,201 to $45,000, the saving caps out at 1% of roughly $26,800 — about $268 a year — for anyone earning $45,000 or more. It is modest but automatic. Flip the financial-year toggle and the calculator shows your exact saving.
Key caveats and AU specifics
This is a clean, salary-only estimate. It ignores things that change real bills:
- Deductions and salary sacrifice
- Reportable fringe benefits
- Investment or rental income, and capital gains
- The Senior and Pensioner Tax Offset
- Family or spouse circumstances that shift Medicare and surcharge thresholds
- Pay As You Go (PAYG) withholding quirks that can leave a small bill or refund at year end
The point: for anything that matters, treat the output as a guide and confirm with the ATO or a registered tax agent.
The fine print
It assumes your salary is your only assessable income. The Medicare levy low-income thresholds used are the 2025-26 figures (singles exempt up to $28,011, full 2% levy from $35,014), as lifted in the 2026-27 Budget and backdated to 1 July 2025. Non-resident rates have no tax-free threshold and no Medicare levy, and the calculator reflects that when you switch residency.
Your call
Don't fear the bracket — a pay rise can never shrink your take-home, so take it every time. The lever you actually control is deductions: every legitimate dollar you claim comes off your taxable income at your marginal rate. Run your salary above, then check the deduction guide for your job before June 30.
Frequently asked questions
- How is income tax calculated in Australia for 2025-26?
- Australia uses a progressive marginal system. Your income is sliced into brackets and each slice is taxed at its own rate: nil up to $18,200, 16% from $18,201 to $45,000, 30% from $45,001 to $135,000, 37% from $135,001 to $190,000, and 45% above $190,000. You then add the 2% Medicare levy, subtract the Low Income Tax Offset if eligible, and add any HECS/HELP repayment or Medicare Levy Surcharge.
- What is the 2026-27 tax cut and how much will I save?
- From 1 July 2026 the second tax bracket falls from 16% to 15% under the legislated Treasury Laws Amendment (Cost of Living Tax Cuts) Act 2024. Because the bracket runs from $18,201 to $45,000, the maximum saving is 1% of $26,799, or about $268 a year, for anyone earning $45,000 or more. Switch the financial year toggle to see your exact saving.
- Does the calculator include the Medicare levy and HECS/HELP?
- Yes. The 2% Medicare levy is added by default, with the low-income phase-in handled automatically. You can also tick HECS/HELP to add a compulsory study-loan repayment using the 2025-26 marginal repayment scale, and tick off private hospital cover to add the Medicare Levy Surcharge if your income is high enough.
- Is superannuation included in my take-home pay?
- No. Compulsory superannuation (12% in 2025-26) is paid into your fund, not your bank account, so it is never part of take-home pay. Use the salary basis toggle to tell the calculator whether your figure already includes super or has super paid on top, and it will work out the taxable salary correctly.
- What is the difference between marginal and effective tax rate?
- Your marginal rate is the rate on your next dollar of income (the top bracket you reach). Your effective rate is your total income tax plus Medicare levy divided by your gross taxable salary. The effective rate is always lower than the marginal rate because the lower slices of your income are taxed less, and the tax-free threshold applies to everyone.
- Are these figures official ATO rates?
- The tax brackets, Medicare levy and its 2025-26 low-income thresholds, LITO, Medicare Levy Surcharge and HECS/HELP scales are the published ATO figures for 2025-26, and the 2026-27 estimate uses the legislated 15% bracket. This is an estimate only — always confirm with the ATO.
General information only — an estimate, not financial, tax, credit or legal advice. Figures current as at FY2025-26, reviewed June 2026. Confirm with the ATO / your lender / the relevant state revenue office.
Sources: ATO — Tax rates – Australian resident (2025-26 brackets); ATO — Personal income tax: new tax cuts for every Australian taxpayer and the Treasury Laws Amendment (Cost of Living Tax Cuts) Act 2024 (2026-27 16%→15%); ATO — Medicare levy and Medicare levy reduction for low-income earners (2% levy, 2025-26 low-income thresholds); ATO — Low income tax offset (LITO); ATO — Medicare levy surcharge income, thresholds and rates; ATO — Study and training support loans rates and repayment thresholds (2025-26 marginal HELP scale); ATO — Super guarantee percentage (12% from 1 July 2025).