Australia Income Tax Calculator
Estimate income tax, Medicare levy, Medicare levy surcharge, compulsory HELP repayment and take-home income. Compare Australian resident, foreign resident and working holiday maker treatment using current 2026–27 rates.
Last Updated: July 29, 2026Calculate Australian tax and take-home income
Enter annual amounts in Australian dollars. The result is an annual assessment estimate, not a pay-period withholding quote.
Calculation breakdown
| Component | Annual amount | Average selected period |
|---|
How to use this Australia income tax calculator
Start with taxable income, not gross salary. Taxable income is assessable income after allowable deductions. If you only know your salary and have no other income or deductions, salary is a practical starting estimate. Select your tax status carefully because residents, foreign residents and working holiday makers use different schedules.
- Enter taxable income for 1 July 2026 to 30 June 2027.
- Select Australian resident, foreign resident or working holiday maker.
- Choose how Medicare levy should be estimated and whether suitable hospital cover applies.
- Enter MLS income and family details when testing the surcharge.
- Turn on HELP and enter repayment income when a study debt remains.
- Add only non-refundable tax offsets, then calculate.
The annual column is the useful tax-return planning view. Monthly, fortnightly and weekly figures are simple annual averages. They do not reproduce the ATO PAYG withholding tables.
Australian resident income tax rates for 2026–27
| Taxable income | Tax on this income |
|---|---|
| $0 to $18,200 | Nil |
| $18,201 to $45,000 | 15 cents for each $1 over $18,200 |
| $45,001 to $135,000 | $4,020 plus 30 cents for each $1 over $45,000 |
| $135,001 to $190,000 | $31,020 plus 37 cents for each $1 over $135,000 |
| $190,001 and above | $51,370 plus 45 cents for each $1 over $190,000 |
These rates exclude the Medicare levy and MLS. The first resident rate fell from 16% to 15% on 1 July 2026. A second legislated reduction to 14% starts from 1 July 2027, so it does not belong in a 2026–27 calculation.
How the calculator applies the formula
The engine divides income across bands. A resident with $90,000 taxable income pays no tax on the first $18,200, 15% on the next $26,800 and 30% on the final $45,000. Income tax before offsets is therefore $4,020 + $13,500 = $17,520. A standard 2% Medicare levy adds $1,800. With no MLS, HELP or offsets, total estimated liability is $19,320 and annual take-home income is $70,680.
Tax offsets reduce income tax but do not normally erase Medicare levy, MLS or compulsory study-loan repayments. The calculator limits offsets to income tax, preventing a non-refundable offset from creating a cash refund.
Medicare levy and Medicare levy surcharge
Standard Medicare levy
The normal Medicare levy is 2% of taxable income. Low-income taxpayers can pay a reduced amount or no levy. Because the reduction depends on the applicable threshold category and can involve family income, spouse income, SAPTO treatment and partial-year exemptions, this calculator uses either the standard 2% levy or a full-year exemption. Check the exact low-income reduction separately before relying on the final figure.
Medicare levy surcharge
MLS is separate from the 2% levy. It can apply to Australian taxpayers without suitable private patient hospital cover. For 2026–27 the single base threshold is $105,000 and the family base threshold is $210,000. Higher tiers begin at $123,001 and $164,001 for singles. Family thresholds are double and increase by $1,500 for each dependent child after the first.
The calculator uses 1%, 1.25% and 1.5% tiers. It assumes the selected cover position applies for the full year. Partial-year cover, spouse attribution, exempt days and private-health rebate adjustments are outside this quick estimate.
HELP and study-loan repayments in 2026–27
Compulsory repayments now use a marginal formula. Repayment income up to $69,528 produces no repayment. From $69,529 to $129,717, the amount is 15 cents for each dollar above $69,528. From $129,718 to $186,050, the formula adds 17 cents for each dollar above $129,717 to the first-band amount. Above $186,050, the repayment is 10% of repayment income.
Repayment income is broader than taxable income. It can include reportable fringe benefits, reportable employer super contributions, total net investment losses and certain foreign employment income. This is why the calculator keeps the HELP input separate.
Resident, foreign resident and working holiday maker differences
| Status | Starting treatment | Medicare in this tool |
|---|---|---|
| Australian resident | $18,200 tax-free threshold, then resident bands | Available |
| Foreign resident | 30% from first dollar to $135,000 | Excluded |
| Working holiday maker | 15% from first dollar to $45,000 | Excluded from this estimate |
Residency is a legal test, not a citizenship choice. A temporary visa holder can be an Australian resident for tax purposes, while an Australian citizen living abroad can become a foreign resident. Working holiday maker rates apply to covered visa income and registered-employer arrangements. Treaty cases can change the result.
What this estimate includes and excludes
The calculator includes the main individual income-tax schedule, user-entered non-refundable offsets, a resident Medicare levy estimate, 2026–27 MLS tiers, the current marginal HELP formula and an optional WATO estimate. It does not calculate capital-gains discount mechanics, business losses, foreign tax credits, SAPTO, spouse offsets, Division 293 tax, private-health rebate reconciliation, PAYG instalments or employer super.
Use taxable income after deductions. Do not subtract PAYG withholding. Withholding is a credit against the final assessment, not a deduction from taxable income. To estimate a refund or balance payable, compare the tool’s total liability with tax already withheld after reviewing all return items.
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Frequently asked questions
What Australian tax rates does this calculator use?
It uses the 2026–27 individual rates. For Australian residents, the rate from $18,201 to $45,000 is 15%, followed by 30%, 37% and 45% bands. It also includes separate foreign-resident and working-holiday-maker schedules.
Does the result include the Medicare levy?
Yes, for Australian residents when selected. The standard estimate is 2% of taxable income, with a low-income reduction option. Exact exemptions and family reductions require facts beyond a simple income estimate.
What is the Medicare levy surcharge?
The MLS is an extra 1%, 1.25% or 1.5% for some Australian taxpayers without suitable private patient hospital cover. This tool uses 2026–27 single or family thresholds and lets you enter dependent children.
How does the 2026–27 HELP repayment work?
The compulsory repayment is marginal. It is nil up to $69,528, then 15 cents for each dollar above that threshold. A higher marginal formula applies from $129,718, and the top formula applies above $186,050.
Does taxable income equal HELP repayment income?
Not always. HELP repayment income can add items such as reportable fringe benefits, reportable super contributions, net investment losses and some foreign employment income. Enter the separate repayment-income figure when it differs.
Are tax offsets included?
The calculator offers an optional $250 Working Australians tax offset estimate for eligible resident labour income. It does not automatically calculate every personal offset, such as SAPTO, zone or foreign-income offsets.
Can a foreign resident claim the tax-free threshold?
Generally no. The foreign-resident schedule starts at 30% from the first dollar for 2026–27. Foreign residents generally do not pay the Medicare levy.
Who should choose working holiday maker?
Choose it only for income taxed under the registered-employer working-holiday-maker rules for subclass 417 or 462 visa holders. Special treaty outcomes and unregistered-employer withholding need separate review.
Is this the same as PAYG withholding?
No. This is an annual liability estimate. PAYG withholding uses payroll tables and rounding each pay period, so payslip withholding can differ from the annual assessment.
Is the result suitable for lodging a tax return?
Use it for planning and comparison. Your final assessment depends on residency, deductions, offsets, private-health-cover days, family income, HELP repayment income and other return details.