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Australian Income Tax Calculator
The 2026–27 year is the first with the 15% rate in the second bracket. Most online calculators are still using the 2024–25 tables, which overstates tax for anyone earning between $18,200 and $45,000.
FY2026–27 rates · Medicare and HELP included
At a glance
Interactive calculator
Live — results update as you type
Your income
2026–27 resident rates, including the 15% bracket that started 1 July 2026.
Take-home pay
$0per month after tax
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2026–27 resident rates
Applied exactly, not rounded to a table.
| Taxable income | Rate | Tax on this band |
|---|
What changed on 1 July 2026
16% became 15%
The rate on income between $18,200 and $45,000 dropped one point, worth up to $268 a year. It falls to 14% on 1 July 2027, worth another $268.
The thresholds did not move
The $45,000, $135,000 and $190,000 boundaries are unchanged. Bracket creep is doing more damage than the rate cut is fixing, particularly for anyone whose pay rose with inflation.
Medicare is separate
The 2% levy is not part of income tax and is not in the marginal rates you see quoted. It applies to most residents and phases in between $27,222 and $34,027.
$120,000 salary, resident, no HELP debt
Income tax is $26,520 under the 2026–27 tables: nothing on the first $18,200, 15% to $45,000, then 30% to $120,000. Medicare adds $2,400, so $28,920 goes and $91,080 stays — $7,590 a month.
The effective rate is 24.1%. The marginal rate is 32% including Medicare. The second number is the one that should price a decision: an extra $10,000 of salary keeps $6,800, and that is what a deduction is actually worth to you.
Australian income tax questions
What are the 2026-27 tax rates?
Residents: nil to $18,200; 15% from $18,201 to $45,000; 30% from $45,001 to $135,000; 37% from $135,001 to $190,000; 45% above $190,000. Add 2% Medicare for most residents.
What is the tax-free threshold?
$18,200. If you earn less than that you pay no income tax, though you may still pay the Medicare levy once income passes $27,222. Non-residents do not get the threshold at all.
How does the Medicare levy work?
2% of taxable income, with a reduction for low income earners that phases out between $27,222 and $34,027 for singles. It is separate from the Medicare Levy Surcharge, which applies to higher earners without private hospital cover.
What is the HELP repayment threshold?
Repayments start at 1% of income above $54,435 and rise on a sliding scale to 10%. The repayment is calculated on your total income, not just the portion above the threshold, which catches people out at the boundary.
Does this include the Medicare Levy Surcharge?
No. The surcharge of 1–1.5% applies to singles earning above $97,000 and families above $194,000 who do not hold appropriate private hospital cover. It is added on top of the levy.
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Calculates 2026–27 resident and foreign resident income tax, the Medicare levy and HELP repayments. It excludes the Medicare Levy Surcharge, private health rebates, dependant offsets, the Small Business Income Tax Offset and any rental or business income treatment. Not tax advice — confirm with a registered tax agent.
Reviewed November 2026 · FY2026–27 rates and thresholds