This Australia income tax calculator works out your 2026-27 income tax, Medicare levy, low income tax offset and take-home pay. It uses the new 15% rate on income between $18,201 and $45,000 that started on 1 July 2026.
2026-27 resident tax rates
| Taxable income | Tax on this income |
|---|---|
| $0 – $18,200 | Nil |
| $18,201 – $45,000 | 15c for each $1 over $18,200 |
| $45,001 – $135,000 | $4,020 plus 30c for each $1 over $45,000 |
| $135,001 – $190,000 | $31,020 plus 37c for each $1 over $135,000 |
| Over $190,000 | $51,370 plus 45c for each $1 over $190,000 |
The 15% rate replaces 16% from 1 July 2026, and is legislated to fall to 14% from 1 July 2027. Foreign residents pay 30% from the first dollar, with no tax-free threshold.
Medicare levy and offsets
- Medicare levy: 2% of taxable income, reduced or nil for people on low incomes (for singles, nil up to $28,011 at the latest published threshold).
- Low income tax offset (LITO): up to $700, reducing above $37,500 and to nil at $66,667. With the tax-free threshold, it means no income tax on about the first $22,866.
- Super guarantee: employers pay 12% of ordinary earnings into your super on top of your salary.
Worked example
On a taxable income of $85,000, income tax is $16,020 and the Medicare levy is $1,700, a total of $17,720. Take-home pay is about $67,280 a year, or $2,587.69 a fortnight. Your employer also pays $10,200 into your super.
Frequently asked questions
What are the Australian tax rates for 2026-27?
Residents pay nothing on the first $18,200, 15% up to $45,000, 30% up to $135,000, 37% up to $190,000 and 45% above that, plus the 2% Medicare levy.
What changed on 1 July 2026?
The rate on income between $18,201 and $45,000 fell from 16% to 15%. It is due to fall again to 14% on 1 July 2027.
How much can I earn before paying tax?
$18,200 is tax-free for residents, and the low income tax offset means most people pay no income tax until about $22,866.
Is super taken out of my pay?
No. Compulsory super guarantee contributions of 12% are paid by your employer on top of your salary, unless your package is quoted as including super.
What is the Medicare levy surcharge?
An extra 1% to 1.5% charged to higher earners without appropriate private hospital cover. It is separate from the Medicare levy and not included here.
Related calculators
Sources
Last reviewed: October 2026 against official government sources. This calculator gives estimates for education only and is not tax advice.