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Australian Calculator

Australian Income Tax Calculator

Estimate your Australian income tax from your annual income, including an estimate of the Medicare levy and your after-tax income.

Content written and reviewed by the Frontiers Finance team · Last updated: 18 August 2026

Quick answer

How much income tax do you pay in Australia?

For Australian residents in 2026–27, the first A$18,200 of taxable income is generally tax-free. Income above this amount is taxed progressively, with resident marginal rates ranging from 15% to 45%. The Medicare levy may also apply.

Tax-free threshold

A$ 18,200

First resident tax rate

15 %

Top resident tax rate

45 %

Standard Medicare levy

2 %

1

Income

2

Calculation options

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Your results will appear here

Enter your annual income and calculate to see an estimate of your Australian income tax.

How Australian income tax works

Australia uses a progressive income tax system for tax residents. Different portions of taxable income are subject to different tax rates.

Tax-free threshold

The first portion of an Australian tax resident's taxable income may be subject to a 0% income tax rate.

Progressive tax brackets

Only the portion of income falling within each bracket is taxed at that bracket's applicable rate.

Medicare levy

The Medicare levy is generally calculated separately from income tax and helps fund Australia's public healthcare system.

Tax residency matters

Australian residents, foreign residents and working holiday makers can be subject to different tax rates and tax-free threshold rules.

2026–27 income tax brackets

The rates below represent the main resident income tax brackets used by the calculator for the 2026–27 income year.

Taxable incomeTax rate
A$ 0 – A$ 18,2000 %
A$ 18,201 – A$ 45,00015 %
A$ 45,001 – A$ 135,00030 %
A$ 135,001 – A$ 190,00037 %
A$ 190,001+45 %

The Medicare levy is not included in the rates shown in this table and is estimated separately.

How do marginal tax rates work in Australia?

Australia uses a progressive income tax system. Moving into a higher tax bracket does not mean all of your income is taxed at the higher rate. Only the portion of taxable income within each bracket is taxed at that bracket's rate.

Australian resident, foreign resident or working holiday maker?

Your tax residency status can materially change the amount of income tax you pay. Australian residents generally have access to the tax-free threshold, while foreign residents and working holiday makers are subject to different rate schedules.

Australian income tax FAQs

Quick answers to common questions about Australian income tax rates, the tax-free threshold, Medicare levy and residency.

How much income tax do I pay in Australia?

The amount depends on your taxable income and tax residency status. For Australian residents, income is taxed progressively across several brackets, so different portions of your income can be taxed at different rates.

What is the tax-free threshold in Australia?

For Australian residents, the standard tax-free threshold is A$18,200. Taxable income above this amount is generally subject to resident income tax rates.

Is the Medicare levy included in Australian income tax?

The Medicare levy is separate from ordinary income tax and is generally 2% of taxable income for Australian residents, although reductions and exemptions can apply.

What is a marginal tax rate?

Your marginal tax rate is the rate that applies to the next portion of taxable income you earn. It does not mean your entire income is taxed at that rate.

Do foreign residents pay the same income tax rates?

No. Foreign residents generally use a different tax rate schedule and do not receive the standard Australian resident tax-free threshold.

Important information

This calculator provides a general estimate for an Australian tax resident. It does not cover every tax rule, credit, deduction, offset, Medicare levy exemption or individual circumstance.

Results are provided for informational purposes only and do not constitute tax, financial or legal advice.