PAYG Income Tax Calculator Australia
Estimate Australian individual income tax, Medicare levy and take-home pay for the 2025–26, 2026–27 and 2027–28 financial years. Results are annual tax estimates and are not a substitute for the ATO’s pay-period PAYG withholding calculator.
Resident tax rates reflect legislated changes through 2027–28. General Medicare low-income thresholds are modelled as described below.Income Details
Enter the annual taxable income you want to model.
Estimated Take-Home Pay
Annual net income divided into common pay periods. Actual payroll withholding and net pays can differ due to PAYG tables and rounding.
Income Tax Bracket Breakdown
Australia uses marginal tax rates. Only the portion of income inside each bracket is taxed at that bracket’s rate.
| Tax Bracket | Rate | Income in Bracket | Tax From Bracket |
|---|
Australian Salary & Tax Comparison
Comparison uses the selected financial year, residency, Medicare and offset settings.
| Annual Income | Income Tax | Medicare | Take-Home | Monthly Take-Home |
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Australian Income Tax Rates Used by This Calculator
For Australian residents, the standard tax-free threshold is $18,200. The first marginal rate is 16% in 2025–26, 15% in 2026–27 and 14% from 2027–28. The higher marginal rates remain 30%, 37% and 45% at the standard thresholds modelled here.
PAYG Withholding vs Annual Income Tax
PAYG means Pay As You Go. Employers withhold tax from salary or wages during the year. A payslip withholding calculation is not identical to a final annual income-tax calculation because ATO withholding schedules work on each pay period and may also depend on declarations, study loans, Medicare adjustments, tax offsets, irregular payments and rounding.
Medicare Levy Assumptions
For a standard resident individual, this calculator uses a 2% Medicare levy above the relevant general low-income phase-in range. It does not model every family threshold, seniors and pensioners threshold, exemption, Medicare levy surcharge or private-health adjustment.
Low Income Tax Offset (LITO)
The optional LITO calculation uses the standard resident rules: up to $700 at taxable income of $37,500 or less, then the legislated taper through taxable income of $66,667. The offset is non-refundable and cannot reduce income tax below zero.
2027–28 Working Australians Tax Offset
A new Working Australians Tax Offset applies from 2027–28 for eligible Australian residents with qualifying net labour income above the tax-free threshold. Because eligibility depends on the type of income, it is not automatically applied. Select the option only when the taxable income entered is an appropriate approximation of eligible labour income.
Frequently Asked Questions
What is the Australian tax-free threshold?
For a full-year Australian resident under the standard individual rate schedule, the tax-free threshold is generally $18,200.
Does a higher tax bracket apply to all my income?
No. Australia uses marginal rates. Only the part of your income falling inside a higher bracket is taxed at that higher rate.
Does this include HELP or other study-loan repayments?
No. Study and training support loan repayments are separate and are not included in this version.
Does this include the Medicare levy surcharge?
No. The Medicare levy surcharge depends on additional information such as income for surcharge purposes, family status and appropriate private hospital cover.
Why can my payslip PAYG differ?
Employers use ATO pay-period withholding schedules and payroll rounding. PAYG can also be affected by TFN declaration choices, tax-free threshold claims, study loans, offsets and Medicare adjustments.
Is EasyCalculator.com.au affiliated with the ATO?
No. EasyCalculator.com.au is an independent calculator website and is not affiliated with the Australian Taxation Office or Australian Government.