Estimated Take-Home Pay
$0
Annual Post-Tax
Income Tax Calculator
Stage 3 Tax Cuts Applied (FY 2024–25)
$
Annual
Monthly
Fortnightly
Weekly
Income Tax FAQ
Understanding the Australian Income Tax System & Stage 3 Cuts
Australia uses a progressive tax system, meaning the more you earn, the higher the percentage of tax you pay. Your income is divided into segments (brackets), and each segment is taxed at its specific rate. This ensures higher earners contribute a larger portion of their income.
Effective 1 July 2024, the Stage 3 Tax Cuts reduced the 19% tax rate to 16% and the 32.5% rate to 30%. Additionally, the threshold where the 37% tax rate applies was increased from $120,000 to $135,000.
For Australian residents, the first $18,200 of your annual income is tax-free. If you earn less than this amount in a financial year, you generally do not pay any income tax.
The Medicare Levy is a 2% tax on your taxable income that helps fund Australia's public health system. Most residents pay it, though low-income earners may receive a reduction or exemption. Note: This is different from the Medicare Levy Surcharge, which only applies to higher earners without private hospital cover.
Foreign residents are taxed only on their Australian-sourced income and do not have access to the $18,200 tax-free threshold. They start paying 30% tax from their very first dollar earned in Australia and are generally exempt from the Medicare Levy.
The Australian financial year runs from 1 July to 30 June. If you are lodging your own return, you must do so by 31 October. If you use a registered tax agent, you may have a much later deadline (often up to May of the following year).