Australia Income Tax Calculator 2026-27 | Tax Atlas
Calculate your 2026-27 take-home pay, income tax, and full bracket breakdown for Australia. Free, no signup required.
Enter your gross income above to see your 2026-27 Australia tax breakdown instantly.
Quick example
A resident without private hospital cover earning $90,000 in 2026-27 has a taxable income of $90,000 after the $0 tax-free threshold, and pays approximately $19,588 in income tax, LITO, and Medicare Levy — an effective rate of about 21.8%.
How Australian income tax works in 2026-27
Australian resident income tax uses five progressive brackets from 0% to 45%. The first $18,200 is tax-free; the rate then rises from 16% (Stage 3+ cuts) through 30%, 37%, and 45% for income above $190,000. Only the income within each bracket is taxed at that bracket's rate — you are never taxed on your whole income at the highest rate that applies to any portion.
On top of income tax, most residents pay the Medicare Levy — a 2% flat levy on gross income that funds the public health system. A shade-in provision reduces the levy for incomes below $26,000: instead of the full 2%, you pay 10¢ per $1 above the threshold up to a crossover of $32,500, at which point the flat 2% produces a lower figure.
The Low Income Tax Offset (LITO) provides up to $700 in relief for lower earners. It is applied against income tax only (not Medicare), phases out at 5¢ per $1 between $37,500 and $45,000, and then at 1.5¢ per $1 until it reaches zero at $66,667.
Singles without private hospital cover pay the Medicare Levy Surcharge (MLS) on top of the standard levy: 1% of gross income above $93,000, 1.25% above $108,000, and 1.5% above $144,000. The rate applies to the full income — not just the amount above the threshold — creating real cliff effects at each tier. Taking out basic private hospital cover eliminates the surcharge entirely.
These rates and thresholds are sourced from ATO — Income tax rates for Australian residents (ato.gov.au).
2026-27 Australia income tax brackets
| Rate | Taxable income |
|---|---|
| 0% | Up to $18,200 |
| 16% | $18,200 – $45,000 |
| 30% | $45,000 – $135,000 |
| 37% | $135,000 – $190,000 |
| 45% | Over $190,000 |
Income tax brackets only. Low Income Tax Offset (LITO), Medicare Levy, and Medicare Levy Surcharge are shown separately in the breakdown. Source: ATO ato.gov.au.
Frequently asked questions
- How is Australian income tax calculated in 2026-27?
- Australian resident tax is progressive across five brackets: 0% up to $18,200; 16% from $18,201 to $45,000; 30% from $45,001 to $135,000; 37% from $135,001 to $190,000; and 45% above $190,000. Only the income within each bracket is taxed at that rate. On top of income tax, most residents pay a 2% Medicare Levy, and the Low Income Tax Offset (LITO) reduces tax for lower earners.
- What is the Low Income Tax Offset (LITO)?
- LITO provides a tax offset of up to $700 for lower-income residents. It phases out at 5¢ per $1 between $37,500 and $45,000 (reducing from $700 to $325), then at 1.5¢ per $1 from $45,000 until it reaches zero at $66,667. LITO is applied only against income tax — not the Medicare Levy.
- What is the Medicare Levy?
- The Medicare Levy is a 2% levy on your gross income that funds Australia's universal health system. A shade-in applies for incomes between $26,000 and $32,500 — instead of the full 2%, you pay 10¢ per $1 above $26,000. Below $26,000, no Medicare Levy applies. Certain low-income earners may also be eligible for a Medicare Levy reduction or exemption — consult the ATO for details.
- What is the Medicare Levy Surcharge (MLS) and how does it work?
- The MLS is an additional levy for singles earning above $93,000 who do not hold private hospital cover: 1% of gross income for $93,000–$108,000; 1.25% for $108,001–$144,000; and 1.5% above $144,000. Critically, the rate applies to your full income — not just the amount above the threshold — creating cliff effects at each tier. Taking out basic private hospital cover removes the surcharge entirely.
- Does this calculator include HELP/HECS repayments?
- Yes. Select "Resident with HELP/HECS debt" to include student loan repayments. HELP repayments are income-contingent: a percentage of your total income, not marginal, from 1% at $54,435 up to 10% above $159,365. Like the MLS, the rate applies to your full income at the applicable tier.
- When is the Australian tax return due?
- Individual tax returns for the 2026-27 income year (1 July 2026 – 30 June 2027) are due by 31 October 2027 if lodged individually. If you use a registered tax agent, extended deadlines apply. Confirm deadlines with the ATO at ato.gov.au.
- Is this a professional tax estimate?
- No. This calculator provides estimates for informational purposes only and does not constitute professional tax advice. It covers resident income tax, LITO, Medicare Levy, MLS, and HELP repayments for standard employment income. It does not cover the seniors and pensioners tax offset, Medicare Levy exemptions, surcharge on high incomes, or other individual circumstances. Consult a registered tax agent or Chartered Accountant for advice specific to your situation.
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