Australia income tax calculator 2026-27 vs 2025-26
Enter a yearly salary to see the income tax for 2026-27 with the offset and the levy, and how much the same salary kept in 2025-26.
Results
Take home pay
A$ 50,715.00
You keep 84.53%.
- Income tax a year
- A$ 8,105.00
- Marginal rate
- 33.50%
- -
- -
- Employer cost a year
- A$ 67,200.00
Side by side
| Item | A year |
|---|---|
| Gross pay | A$ 60,000.00 |
| Income tax | A$ 8,220.00 |
| Low income tax offset | -A$ 115.00 |
| Medicare levy | A$ 1,180.00 |
| Total deductions | A$ 9,285.00 |
| Take home pay | A$ 50,715.00 |
Take home pay is A$ 603 a year more than in income year 2025-26.
| Item | A year |
|---|---|
| Super guarantee (employer) | A$ 7,200.00 |
| Item | Amount |
|---|---|
| Salary | A$ 60,000.00 |
| Work deduction (the larger of the standard deduction and actual) | A$ 1,000.00 |
| Taxable income | A$ 59,000.00 |
A year.
| Item | Amount |
|---|---|
| Super guarantee from the employer | A$ 7,200.00 |
| Salary sacrifice | A$ 0.00 |
| Concessional contributions | A$ 7,200.00 |
| Concessional contributions cap | A$ 32,500.00 |
| Contributions tax in the fund | A$ 1,080.00 |
| Into super after contributions tax | A$ 6,120.00 |
A year. Contributions tax is 15% of concessional contributions, taken in the fund.
What this does not include
- Shows the tax on a resident's salary from one job for a full income year. Interest, dividends, rent, capital gains and business income are left out, and so are deductions other than work expenses.
- Compare runs the 2025-26 rates on the same salary and the same inputs. It does not allow for a pay rise between the two years or for work expenses that changed.
- The cut of the first rate to 14% in 2027-28 and the Working Australians tax offset that starts the same year are not included, because both begin after the years shown.
- The seniors and pensioners tax offset and other offsets are not included, and neither are the amounts an employer withholds under the PAYG scales during the year.
- Medicare levy thresholds are the ones in law when the rates were checked. A later Act can still raise the 2026-27 figures back to 1 July 2026, as happened for 2025-26.
- The super guarantee is taken on salary before any sacrifice. That is an assumption: no official page read so far says whether sacrificed salary counts as qualifying earnings under Payday Super from 1 July 2026.
- For the surcharge test and for a study loan, income here is taxable income plus salary sacrificed only. Reportable fringe benefits, net investment losses and the other add backs the law includes are not asked for.
- When a couple shares the Medicare levy family reduction, each partner takes a part in proportion to taxable income, and a part one partner cannot use passes to the other.
- Division 293 tax on concessional contributions above its income threshold appears with the super figures only. It is a separate assessment, so it never lowers the pay shown.
- The spouse income box feeds two tests, the family reduction and the family surcharge tier. The reduction legally uses taxable income alone, so a salary sacrifice by the spouse entered there trims the reduction a little.
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For information only, not financial, tax or legal advice.
Last updated . Method checked . Rates checked 2 November 2026. Methodology
This calculator works out the income tax an Australian resident pays on a salary for the 2026-27 income year and sets it against 2025-26. From 1 July 2026 the first rate above the A$ 18,200 tax free threshold fell from 16% to 15%, and a A$ 1,000 standard deduction for work expenses began. The page lays the tax out bracket by bracket, takes off the low income tax offset and adds the Medicare levy. On a salary of A$ 60,000 the income tax is A$ 8,105 after an offset of A$ 115, the levy is A$ 1,180, and the pay left is A$ 603 a year more than the same salary kept in 2025-26. Pick 2025-26 or Compare in the income year switch to see last year's figures. Every figure is worked out on your device, and the salary is never uploaded.
How to use the Australia Income Tax Calculator
- Type the salary for the year before tax, leaving out the super your employer pays on top.
- Switch on the HELP option if you repay a study loan, and switch off private hospital cover if you have none. Tip: Both change what is taken from pay, but neither is income tax, so each shows as a line of its own.
- Read the income tax for the year under the take home pay, with the Medicare levy and the low income tax offset in the breakdown.
- Pick Compare in the income year switch to set the 2025-26 figures beside 2026-27 for the same salary, line by line, with the change in dollars.
- Open How we calculate for the tax in each bracket and the steps from salary to taxable income.
Worked example
An Australian resident earns a salary of A$ 60,000 in the 2026-27 income year, with super paid on top, no study loan, private hospital cover and no work expenses above the standard deduction. The same salary is then run on the 2025-26 rates. The figures are in Australian dollars (AUD).
| Input | Value |
|---|---|
| Salary for the year before tax | A$ 60,000 |
| Income years | 2026-27, compared with 2025-26 |
| Work expenses | None above the standard deduction |
Taxable income = 60,000 - 1,000 = 59,000 Income tax = 4,020 + 30% x (59,000 - 45,000) = 8,220 Low income tax offset = 325 - 1.5% x (59,000 - 45,000) = 115, so net income tax = 8,105 Medicare levy = 2% x 59,000 = 1,180, and take home = 60,000 - 8,105 - 1,180 = 50,715 2025-26 on the same salary: 4,288 + 30% x 15,000 - 100 = 8,688 and a levy of 1,200, so 2026-27 keeps 603 more
- Income tax a year after the offset
- A$ 8,105.00
- Income tax before the offset
- A$ 8,220.00
- Low income tax offset
- -A$ 115.00
- Medicare levy
- A$ 1,180.00
- Take home pay a year
- A$ 50,715.00
- Marginal rate with the levy and the offset taper
- 33.50%
Rates for both years from the rates files, checked on 2 November 2026 against Schedule 7 of the Income Tax Rates Act 1986, section 25-130 of the Income Tax Assessment Act 1997 and the Medicare Levy Act 1986.
How it is calculated
Taxable income = salary - salary sacrifice - work deduction (2026-27: the larger of the standard deduction and actual expenses)
Income tax = fixed amount + bracket rate x (taxable income - bracket start)
Net income tax = income tax - low income tax offset, not below nil
Change = 2026-27 take home - 2025-26 take home for the same salary
Schedule 7 of the Income Tax Rates Act 1986 holds a table for each income year. The 2026-27 table taxes income between A$ 18,200 and A$ 45,000 at 15%, where the 2025-26 table charged 16%. The higher rates of 30%, 37% and 45% did not move, so every fixed amount above the first band drops by the same A$ 268: A$ 31,020 against A$ 31,288 at A$ 135,000, for example.
The second change is section 25-130 of the Income Tax Assessment Act 1997. For 2026-27 and later years a resident with salary or wages deducts A$ 1,000, or the actual work expenses claimed when those are higher. In 2025-26 only actual expenses counted, so Compare runs last year on the salary less any expenses you enter.
In the worked example a salary of A$ 60,000 gives taxable income of A$ 59,000 in 2026-27. The bracket gives A$ 8,220, and the offset of A$ 115 brings income tax to A$ 8,105. In 2025-26 the whole A$ 60,000 was taxable: A$ 8,788 less an offset of A$ 100 is A$ 8,688. Income tax falls by A$ 583 and the levy by A$ 20, so the pay left rises by A$ 603.
The marginal rate in that example is 33.5%: 30 cents of tax and 2 cents of levy on the next dollar, plus 1.5 cents of offset lost. With private hospital cover switched off, one dollar over a surcharge threshold costs more than a dollar, so no marginal rate is printed there.
The offset and the Medicare levy thresholds are the same in both years, because the 2026 rise in the levy thresholds reached back to 2025-26. The concessional contributions cap and the maximum contribution base do differ, and the super table shows the figures of the year chosen.
Frequently asked questions
How much less tax is paid in 2026-27 than in 2025-26?
On the same taxable income the saving is the gap between 16% and 15% on the income from A$ 18,200 to A$ 45,000, so at most A$ 268. On the same salary it is usually more, because the standard deduction also lowers taxable income by A$ 1,000. A salary of A$ 60,000 keeps A$ 603 more and one of A$ 90,000 keeps A$ 588 more, the levy included.
What is the tax free threshold, and do I have to claim it?
The first A$ 18,200 of a resident's taxable income is taxed at nil. It is built into the rates, not something you claim on your return. Telling an employer to apply it, or not, only changes how much PAYG is withheld from each pay during the year. The tax on assessment for the whole year comes out the same either way, and any gap is settled when the return is lodged.
How does the low income tax offset work?
It takes up to A$ 700 off income tax while taxable income is no more than A$ 37,500. Above that it falls by 5% of the excess until A$ 45,000, then by 1.5% of the income beyond that until it is gone at A$ 66,667. At A$ 59,000 of taxable income it is A$ 115. The offset is the same in both years and cannot make income tax negative.
Who pays a lower Medicare levy?
A single resident pays no levy on taxable income up to A$ 28,011. Above that the levy is at most 10% of the excess, until the full 2% becomes the smaller figure at A$ 35,013. On taxable income of A$ 30,000 that gives A$ 198.90 rather than A$ 600. A family has a higher threshold, A$ 47,238 plus A$ 4,338 for each dependent child.
Why might this not match the tax on my payslips?
Employers withhold PAYG each payday with the ATO withholding scales, which round each pay to whole dollars and build in the offset and the levy only approximately. This calculator works out the tax on assessment for the whole year instead, which is the figure your return settles. Any difference between the two comes back as a refund, or as a bill, once the year has ended on 30 June.
Guides for this tool
Sources
- Income Tax Rates Act 1986, Compilation No. 66 of 1 July 2026, Schedule 7 Part I: resident rates for 2025-26 and 2026-27 checked 2 November 2026
- Treasury Laws Amendment (More Cost of Living Relief) Act 2025, Schedule 1: the first rate of 15% from 2026-27 checked 2 November 2026
- ATO, Tax rates for Australian residents, with the 2026-27 fixed amounts (read from an Internet Archive capture of the official page) checked 2 November 2026
- Income Tax Assessment Act 1997, Compilation No. 268, volume 2, section 61-115: the low income tax offset checked 2 November 2026
- Income Tax Assessment Act 1997, Compilation No. 268, volume 1, section 25-130: the standard deduction for work related expenses checked 2 November 2026
- Treasury Laws Amendment (Tax Reform No. 1) Act 2026, Schedule 4: the standard deduction from 2026-27 checked 2 November 2026
- Medicare Levy Act 1986, Compilation No. 53 of 1 July 2026, sections 6 to 8D: the levy, the low income thresholds, the family reduction and the surcharge checked 2 November 2026
- Treasury Laws Amendment (Delivering an Efficient and Trusted Tax System) Act 2026, Schedule 5: Medicare levy thresholds raised from 2025-26 checked 2 November 2026