Australia Income Tax Calculator
Estimate your 2026-27 Australian income tax including the Medicare levy, using current ATO brackets.
What this calculator does
Estimates your total Australian income tax bill including the Medicare levy, using the current 2026-27 ATO resident tax brackets, so you can see both your total tax and your effective tax rate.
Who this is for
Australian tax residents estimating their annual tax bill, anyone comparing a job offer's take-home pay, or people wanting to understand the real-world impact of the 2026-27 bracket changes on their specific income.
How this calculator works
Uses the 2026-27 ATO resident tax brackets (0% to $18,200, 15% to $45,000, 30% to $135,000, 37% to $190,000, 45% above), the lower second-bracket rate that took effect 1 July 2026. The 2% Medicare levy is added on top, with a reduced phase-in rate for incomes between $29,207 and $36,509.
Worked example
$90,000 taxable income: the first $18,200 is tax-free. The next $26,800 (to $45,000) at 15% = $4,020. The remaining $45,000 (to $90,000) at 30% = $13,500. Income tax = $4,020 + $13,500 = $17,520. Add the 2% Medicare levy: $90,000 × 0.02 = $1,800. Total = $19,320, an effective rate of about 21.5% — well below the 30% marginal bracket rate, since only income within each bracket is taxed at that bracket's rate.
Where your income goes
Run the calculator above to see the income tax, Medicare levy, and take-home split.
Common mistakes
- Forgetting the Medicare levy is separate from income tax. Both are calculated independently and then added together — the Medicare levy isn't baked into the bracket rates shown.
- Not accounting for super separately. The 12% Superannuation Guarantee is paid by your employer on top of your salary, not deducted from your take-home pay shown here.
- Ignoring HECS/HELP repayments. If you have a student loan, repayments are an additional deduction on top of what's calculated here, based on a separate income-tested schedule.
- Assuming your top bracket rate applies to your whole income. Only the portion of income within each bracket is taxed at that bracket's marginal rate — your effective (overall) tax rate is always lower than your top bracket rate.
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Frequently Asked Questions
What's my effective tax rate versus my marginal tax rate?
Your marginal rate is the bracket rate applied to your last dollar earned (30% for someone on $90,000). Your effective rate is total tax divided by total income — for $90,000 taxable income, that's about 21.5% including the Medicare levy, meaningfully lower than the marginal rate.
Is the Medicare levy the same as income tax?
No, it's a separate 2% levy added on top of income tax, funding Australia's public healthcare system. It has its own phase-in threshold for lower incomes.
Does this include superannuation?
No, the 12% Superannuation Guarantee for 2026-27 is paid by your employer in addition to your salary, not deducted from the take-home figure shown here.
What changed with the tax brackets for 2026-27?
The second bracket rate dropped, taking effect 1 July 2026 — see the full breakdown for the complete picture of what changed.