ATO Rate Accurate — FY2021-22 to FY2025-26

Australian Income
Tax Calculator

Free, accurate tax estimates. Includes Stage 3 tax cuts, Medicare Levy, LITO, HELP repayment, and real superannuation rates for every year. Compare any years side by side.

Tax-Free

$18,200

Medicare

2.0%

Super Rate

12.0%

LITO Max

$700

General information only. This calculator provides estimates based on publicly available ATO rates and does not constitute tax advice. Your actual tax may vary. Please consult a registered tax agent or accountant for personalised advice.

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The financial year runs 1 July to 30 June. Not sure? Select the current year (2025–26).

Estimates only based on ATO published rates. Tax-free threshold applies to Australian residents. Consult a registered tax agent for personal advice.

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Enter your income above and click Calculate My Tax to see your full breakdown.

FY2024–25 & FY2025–26 Tax Rates (Stage 3 — same rates both years)

Stage 3 cuts apply from FY2024–25 onwards. Residents: 16% & 30% brackets. Plus Medicare Levy 2%.

Australian Residents (FY2024–25 & 2025–26)

Taxable IncomeRate
$0 – $18,200Nil
$18,201 – $45,00016%
$45,001 – $135,00030%
$135,001 – $190,00037%
$190,001+45%

Tax-free threshold $18,200. LITO up to $700 for incomes below ~$66,667.

Foreign Residents (FY2024–25 & 2025–26)

Taxable IncomeRate
$0 – $135,00030%
$135,001 – $190,00037%
$190,001+45%

No tax-free threshold or LITO. Flat 30% up to $135,000.

Working Holiday Makers (FY2024–25 & 2025–26)

Taxable IncomeRate
$0 – $45,00015%
$45,001 – $135,00030%
$135,001 – $190,00037%
$190,001+45%

Visa 417 & 462. Flat 15% to $45,000, then 30% / 37% / 45%.

Medicare Levy

2.0%

Residents (above ~$26K)

Tax-Free Threshold

$18,200

Residents only

Super Rate (SGC)

12.0%

FY2025–26 onwards

Concessional Cap

$30,000

Salary sacrifice + employer SGC

How Australian Income Tax Works

A plain-English guide to the key concepts behind your tax calculation

Full Tax Guide

Progressive Tax Brackets

Australia uses a progressive tax system — you pay different rates on different portions of your income. For FY2025–26, the first $18,200 is tax-free. Income from $18,201 to $45,000 is taxed at 16%, from $45,001 to $135,000 at 30%, from $135,001 to $190,000 at 37%, and above $190,000 at 45%. You never pay the top rate on your entire income — only on the portion that falls in that bracket.

Low Income Tax Offset (LITO)

LITO is a tax offset — not a deduction — that directly reduces the tax you owe. The maximum is $700 for incomes up to $37,500. It phases out gradually and reaches zero at $66,667. Because of LITO, Australian residents effectively pay no income tax until their income exceeds approximately $21,884. LITO is applied automatically when you lodge your return.

Medicare Levy & Surcharge

The Medicare Levy is a 2% charge on your taxable income that funds Australia's public health system. Most residents pay it. If you earn over $101,000 and don't hold private hospital cover, you also pay the Medicare Levy Surcharge (MLS) of 1%–1.5% on top. For many people at this income level, taking out basic private hospital cover costs less than the MLS.

Superannuation (SGC 12%)

Your employer is legally required to contribute 12% of your ordinary time earnings into your super fund — this is the Superannuation Guarantee (SG) rate for FY2025–26. Super contributions are taxed at a flat 15% inside the fund, far lower than most people's marginal rate. Withdrawals after age 60 from a taxed fund are completely tax-free, making super one of Australia's most tax-effective savings vehicles.

HELP / HECS Debt Repayments

If you have a HELP (Higher Education Loan Program) or HECS debt, repayments are collected through the tax system. For FY2025–26, repayments begin once your income exceeds $67,000 at 1%, rising progressively to 10% for the highest incomes. Tick the HELP box on your TFN declaration so your employer withholds the correct extra amount — otherwise you'll face a larger tax bill at lodgement time.

PAYG Withholding

Throughout the year, your employer deducts estimated tax from each pay and sends it to the ATO — this is PAYG (Pay As You Go) withholding. When you lodge your tax return after 30 June, the ATO calculates your actual tax. If too much was withheld, you get a refund. If too little, you pay the difference. The amount withheld depends on your income, residency status, whether you claimed the tax-free threshold, and any HELP debt.

FY2025–26 Key Rates at a Glance

ItemRate / AmountNotes
Tax-Free Threshold$18,200Australian residents only
Lowest Tax Bracket16%$18,201 – $45,000
Middle Tax Bracket30%$45,001 – $135,000 (Stage 3 rate)
Upper Tax Bracket37%$135,001 – $190,000
Top Tax Bracket45%$190,001 and above
Medicare Levy2.0%On taxable income; low-income exemptions apply
Medicare Levy Surcharge1.0% – 1.5%Applies if income > $101,000 and no private hospital cover
LITO Maximum$700Phases out from $37,500 to $66,667
Super Guarantee (SGC)12.0%Employer contribution on ordinary time earnings
HELP Repayment Threshold$67,0001% repayment rate at threshold, rising to 10%
Concessional Super Cap$30,000Employer SG + salary sacrifice + personal deductible

Source: Australian Taxation Office (ato.gov.au). Rates effective 1 July 2025. Always verify current rates at ato.gov.au.

FAQs

Frequently Asked Questions

Everything you need to know about Australian income tax for FY2025-26.

The tax-free threshold is $18,200 for both FY2024-25 and FY2025-26. If you are an Australian resident and your taxable income is below $18,200, you pay no income tax. You can claim the tax-free threshold when completing your Tax File Number (TFN) declaration with your employer.

View All FAQs — PAYG, Deductions & Super

Including PAYG withholding, tax deductions & superannuation

Important Disclaimer

The results provided by this calculator are general estimates only and do not constitute tax advice. They are based on publicly available ATO rates, offsets, and thresholds and may not reflect your individual tax situation.

Calculations do not account for all possible tax offsets, deductions, adjustments, or personal circumstances (e.g. investment income, rental properties, business income, private rulings, or amended assessments). Actual tax payable may differ.

We strongly recommend consulting a registered tax agent or accountant for advice tailored to your personal situation. You can also contact the ATO directly at ato.gov.au or by calling 13 28 61.

This tool is not affiliated with or endorsed by the Australian Taxation Office. Tax rates and thresholds are updated periodically — always verify current rates at ato.gov.au.

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