Australian Income Tax Calculator

Estimate the income tax and Medicare levy on your taxable income, and see what you keep. Useful before a pay rise, a second job, or adding rental income from an investment property.

Want a more accurate result?

Calculator results are estimates only. If you are borrowing, a broker can show how a lender will actually treat your income, which is not always the same as your tax return.
No fee from us for arranging your finance. No obligation. Takes 2 minutes

What this calculator works out

Australia taxes income in brackets. You pay nothing on the first $18,200, then a rising rate on each band of income above that. The calculator applies those bands and shows four results.

Taxable income

Your assessable income less allowable deductions. Salary, net rental income and interest all go into the same total before the brackets are applied.

Income tax

The tax on that total under the resident rates for the year you select. Only the part of your income inside each bracket is taxed at that bracket’s rate.

Medicare levy

For most residents, 2 per cent of taxable income, charged on top of income tax. Lower-income earners may pay a reduced levy or none.

What you keep

Taxable income less income tax and the Medicare levy. This is the number that matters for your budget, and it moves differently from your gross pay.
Check the income year the calculator is set to before you rely on the answer. The rates changed on 1 July 2026, and they are legislated to change again on 1 July 2027.

How the brackets actually work

A higher bracket only applies to the dollars inside it. Moving into the next bracket never makes your total tax jump on every dollar you earn, it only changes the rate on the next dollar.
Tax on income inside a bracket

= tax at the bottom of the bracket + (income − bracket threshold) × bracket rate

For example, on $100,000 in the 2026 to 2027 year: $4,020 + ($100,000 − $45,000) × 30c = $20,520, plus a Medicare levy of $2,000 for most residents.
Two things about that are worth pausing on.

First, from 1 July 2026 the rate on income between $18,201 and $45,000 fell from 16 to 15 cents in the dollar. Anyone earning above $45,000 pays $268 less tax a year as a result. The same bracket is legislated to fall again, to 14 cents, from 1 July 2027.

Second, the rate that matters for a decision is your marginal rate, the rate on your next dollar. That is what decides how much of a pay rise, or of extra rental income, you actually keep.

What your next $1,000 is worth

Resident rates for the 2026 to 2027 income year, before offsets. Each card shows the bracket, the tax at the top of it, and what you keep from an extra $1,000 earned inside it, after income tax and a 2 per cent Medicare levy.

Up to $18,200

Tax on this band  nil
Keep from an extra $1,000
$1,000, before any Medicare levy

$18,201 to $45,000

15c for each $1 over $18,200
Tax at $45,000  $4,020
Keep from an extra $1,000  about $830

$45,001 to $135,000

$4,020 plus 30c for each $1 over $45,000
Tax at $135,000  $31,020
Keep from an extra $1,000  $680

$135,001 to $190,000

$31,020 plus 37c for each $1 over $135,000
Tax at $190,000  $51,370
Keep from an extra $1,000  $610

$190,001 and over

$51,370 plus 45c for each $1 over $190,000
Keep from an extra $1,000  $530
Read down the last line of each card. Most working Australians sit in the $45,001 to $135,000 band, where every extra $1,000 of taxable income keeps $680 and every $1,000 of deduction saves $320. The low-income tax offset and a reduced Medicare levy can change these figures at the bottom of the scale.

Worked example: a salary, then rental income added

The figures below are illustrative and are not tax advice. They show how the arithmetic behaves, using 2026 to 2027 resident rates and a 2 per cent Medicare levy, before offsets.

Salary only: $95,000
Income tax $19,020, Medicare levy $1,900. You keep $74,080.

Add $12,000 of net rental income: $107,000
Income tax $22,620, Medicare levy $2,140.
Extra tax on the rent, about $3,840, or 32c in each dollar. You keep about $8,160 of the $12,000.

Or a rental loss of $8,000: $87,000
Income tax $16,620, Medicare levy $1,740.
Tax saved, about $2,560. The loss still costs you about $5,440 after tax.
This is why rental income and rental losses are best thought of at your marginal rate, not your average rate. A property that makes a loss still costs you money; the tax system only returns your marginal rate on the loss. And for established properties bought after 7:30pm on 12 May 2026, that tax relief changes from 1 July 2027, as explained below.

What the calculator does not show you

Income tax and the Medicare levy are the main items, but not the only ones. Each of these can change what you actually pay or keep.

Study and training loan repayments

If you have a HELP or other study loan, a compulsory repayment is added once your repayment income passes the threshold. It is collected with your tax but is not part of the rates above.

Medicare levy surcharge

Higher earners without an appropriate level of private hospital cover can pay an extra surcharge of 1 to 1.5 per cent on top of the Medicare levy.

Deductions, offsets and the new rental rules

Deductions reduce taxable income and offsets, such as the low income tax offset, reduce the tax itself. From 1 July 2027, rental losses on established homes bought after 7:30pm on 12 May 2026 can no longer be deducted against wages, only carried forward against residential property income. New builds and properties held before that time keep the current rules.

Residency and part-year income

These rates apply to residents for the full year. Foreign residents have no tax-free threshold, and anyone who became or stopped being a resident during the year is taxed differently.

Before you use the figure for a loan

A tax calculator tells you what the ATO takes. A lender asks a different question: how much income can be relied on to meet repayments. Lenders usually start from gross income, may count only part of rental income or overtime, apply their own policy to rental losses, and test repayments at a rate at least 3 percentage points above the one you would actually pay, as APRA expects. If you are planning to borrow, the borrowing power calculator is the closer guide.
Related tools on this site: borrowing power calculator, income gross up calculator if you know your take-home pay and need the gross figure, budget planner and compound interest calculator to see what tax does to savings interest. Buying to rent out? See investment property loans before you choose between an established home and a new build.
Sources
Australian Taxation Office: Tax rates, Australian residents and Reforming negative gearing and capital gains tax.
Australian Government, Budget 2026 to 2027: Tax reform.
Australian Prudential Regulation Authority: Macroprudential policy settings, 28 May 2026, on the 3 percentage point serviceability buffer.

About the figures on this page. Every tax and take-home figure was calculated from the 2026 to 2027 resident rates shown above plus a 2 per cent Medicare levy, before offsets, HELP repayments and the Medicare levy surcharge. Rental figures are illustrative and are not a forecast.

Important information about this calculator. This calculator estimates resident income tax and the Medicare levy from the taxable income and income year you select. It does not include tax offsets, study loan repayments, the Medicare levy surcharge, part-year residency or the rental loss rules that apply from 1 July 2027. Results are estimates only. They are not tax advice, and Loanity is not a registered tax agent. For advice on your own return, speak to a registered tax agent or the ATO.

General information only. Nothing on this page takes your objectives, financial situation or needs into account. Loanity is a credit representative and can provide credit assistance once we understand your circumstances.
STILL GOT QUESTIONS?

Income tax questions, answered

How much tax do I pay on $100,000 in Australia?

For a resident in the 2026 to 2027 income year, income tax on a $100,000 taxable income is $20,520, plus a Medicare levy of $2,000 for most people. That is $22,520 in total, before offsets and any HELP repayment, leaving $77,480.

Nil up to $18,200, 15c for each $1 from $18,201 to $45,000, 30c from $45,001 to $135,000, 37c from $135,001 to $190,000 and 45c above $190,000. These rates exclude the Medicare levy.

Yes. The rate on income between $18,201 and $45,000 fell from 16c to 15c in the dollar, worth $268 a year to anyone earning above $45,000. A further cut to 14c is legislated from 1 July 2027.

It is the rate on your next dollar of taxable income, set by the bracket your income falls in. It is not the rate on your whole income. Your average rate is always lower than your marginal rate.

Net rental income, rent less deductible expenses, is added to your other taxable income and taxed at your marginal rate. In the worked example, $12,000 of net rent on top of a $95,000 salary adds about $3,840 in income tax and Medicare levy.

Under the current rules, a rental loss can generally reduce your other taxable income, which reduces tax at your marginal rate. On an $8,000 loss at the 30c rate plus Medicare, the saving is about $2,560 and the remaining cost about $5,440. From 1 July 2027, losses on established homes bought after 7:30pm on 12 May 2026 can only be carried forward against residential property income, not wages. New builds and properties held before that time keep the current rules.

No. The published rates exclude the 2 per cent Medicare levy, which most residents pay on top. Some lower-income earners pay a reduced levy or are exempt, and some higher earners also pay a surcharge.

Not from income tax alone, because a higher rate only applies to the dollars inside the higher bracket. Other thresholds, such as study loan repayments or benefits that phase out, can take a larger share of a rise.

Lenders generally start from gross income, then work out what is left after tax, living expenses and existing debts, and test repayments at a rate at least 3 percentage points above the actual rate. The borrowing power calculator gives a closer estimate than a tax calculator.

We do not charge you a fee for arranging your finance. Brokers are generally paid a commission by the lender when a loan settles. If any fee from us would ever apply to your situation, you would be told in writing before you proceeded.