PAYG Income Tax Calculator Australia
Estimate Australian resident income tax and take-home pay for the 2025–26, 2026–27 or 2027–28 financial year. Enter your annual taxable income to estimate income tax, optional Medicare levy, effective tax rate and annual, monthly, fortnightly and weekly take-home pay.
Includes legislated Australian resident tax rates through 2027–28.Income Details
Enter annual taxable income before income tax.
Estimated Take-Home Pay
Gross taxable income less estimated income tax and the selected Medicare levy estimate.
Income Tax Bracket Breakdown
See how your taxable income is divided across the selected Australian income tax brackets. Australia uses marginal tax rates, so your highest rate does not apply to your entire income.
| Tax Bracket | Rate | Income in Bracket | Tax From Bracket |
|---|
Australian Salary & Tax Comparison
Compare estimated resident income tax and take-home pay at several salary levels using the selected financial year’s rates and the same Medicare levy setting.
| Annual Income | Income Tax | Medicare Estimate | Take-Home Pay | Monthly Take-Home |
|---|
How to Use the PAYG Income Tax Calculator
Enter your annual taxable income and select the Australian financial year you want to calculate.
For most employees who are Australian residents for tax purposes, select Australian resident for tax purposes.
You can also choose whether to include a simplified Medicare levy estimate.
The calculator shows:
- Estimated annual income tax;
- Estimated Medicare levy where selected;
- Total estimated tax and levy;
- Annual take-home pay;
- Monthly take-home pay;
- Fortnightly take-home pay;
- Weekly take-home pay;
- Effective tax rate;
- Marginal income tax rate; and
- A breakdown of tax paid within each tax bracket.
Australian Resident Income Tax Rates 2026–27
For Australian resident individual taxpayers in the 2026–27 financial year, the legislated tax rates used by this calculator are:
| Taxable Income | Resident Income Tax Rate |
|---|---|
| $0 – $18,200 | Nil |
| $18,201 – $45,000 | 15% for each $1 over $18,200 |
| $45,001 – $135,000 | $4,020 + 30% for each $1 over $45,000 |
| $135,001 – $190,000 | $31,020 + 37% for each $1 over $135,000 |
| Over $190,000 | $51,370 + 45% for each $1 over $190,000 |
What Changed From 2025–26 to 2026–27?
The Australian resident tax rate applying to taxable income between the tax-free threshold and $45,000 was reduced from 16% to 15% from 1 July 2026.
The thresholds for the higher resident brackets remain at $45,000, $135,000 and $190,000 under the rates modelled by this calculator.
A further legislated reduction lowers the first marginal rate from 15% to 14% from 1 July 2027, which is why this calculator also includes the 2027–28 financial year.
How Does Australia’s Tax-Free Threshold Work?
Australian residents for tax purposes can generally benefit from a tax-free threshold of $18,200 for a full income year.
That means the first $18,200 of taxable income is not subject to resident individual income tax under the standard rate schedule.
Income above that amount is taxed progressively through the applicable tax brackets.
Special rules can apply to part-year residents and other circumstances, which are not modelled by this calculator.
How Does Marginal Tax Work?
Australia uses a progressive or marginal individual income-tax system. Moving into a higher tax bracket does not mean your entire income is taxed at the higher rate.
Only the portion of taxable income that falls within each bracket is taxed at that bracket’s rate.
For example, using the 2026–27 resident rates, someone with taxable income of $100,000 does not pay 30% tax on the entire $100,000.
Instead:
- The first $18,200 is tax free;
- The portion from $18,201 to $45,000 is taxed at 15%; and
- The portion from $45,001 to $100,000 is taxed at 30%.
This produces an effective income-tax rate lower than the person’s 30% marginal tax rate.
Marginal Tax Rate vs Effective Tax Rate
Marginal tax rate
Your marginal income tax rate is the tax rate applying to the next dollar of taxable income, before considering other levies or special rules.
Effective tax rate
Your effective tax rate compares the total estimated tax and selected Medicare levy with your total taxable income.
What Is PAYG Withholding?
PAYG stands for Pay As You Go. Employers generally withhold amounts from employee salary or wages during the year and send those amounts to the Australian Taxation Office.
PAYG withholding is essentially a prepayment toward your eventual income-tax liability.
The exact amount an employer withholds can depend on matters such as:
- Pay frequency;
- Whether you claim the tax-free threshold;
- Your Tax File Number declaration;
- Study and training support loan obligations;
- Medicare levy adjustments;
- Tax offsets;
- Residency status;
- Irregular payments or bonuses; and
- ATO withholding schedules and rounding.
This calculator estimates annual income tax and take-home income. It does not reproduce every ATO PAYG withholding schedule or payroll rounding rule. Your payslip withholding may therefore differ from the annualised figures displayed here.
What Is Taxable Income?
Taxable income is not necessarily the same as your gross salary. Broadly, taxable income is determined after considering assessable income and allowable deductions under Australian tax rules.
Examples of income that may contribute to taxable income include:
- Salary and wages;
- Bonuses;
- Commissions;
- Investment income;
- Rental income;
- Business income; and
- Other assessable income.
Allowable deductions may reduce taxable income, depending on your circumstances and Australian tax law.
This calculator expects you to enter the taxable income amount you want modelled.
What Is the Medicare Levy?
The Medicare levy is separate from ordinary individual income tax. A standard levy rate of 2% can apply, but reductions and exemptions can depend on taxable income and personal or family circumstances.
The checkbox in this calculator uses a simplified 2% estimate. It does not fully reproduce low-income reductions, family thresholds, seniors and pensioners thresholds, Medicare exemptions or the Medicare levy surcharge.
The Medicare levy surcharge is also not included.
Does the Calculator Include HELP or HECS Repayments?
No. Compulsory repayments for HELP and other study and training support loans are separate from the standard individual income-tax calculation and are not included in this version of the calculator.
The ATO maintains separate schedules for study and training support loan withholding calculations.
Does the Calculator Include the Medicare Levy Surcharge?
No. The Medicare levy surcharge can apply in certain circumstances based on income, family status and appropriate private patient hospital cover.
Because those rules require additional personal information, the surcharge is not automatically included in this calculator.
Does the Calculator Include Tax Offsets?
No. Tax offsets can depend on individual circumstances and may change the final amount of tax payable.
This calculator does not automatically include:
- Low income tax offsets;
- Seniors and pensioners tax offsets;
- Foreign income tax offsets;
- Private health insurance adjustments;
- Franking credits;
- Capital gains tax adjustments;
- HELP or study loan repayments; or
- Other individual tax-return adjustments.
Salary vs Taxable Income
Your employment salary may be different from the taxable income shown on your final tax return.
For example, someone may earn a $100,000 salary but have other assessable income or allowable deductions that produce a taxable income different from $100,000.
For a simple salary estimate, entering your annual salary can provide a useful approximation where no other tax adjustments are being modelled.
How Is Take-Home Pay Calculated?
The simplified take-home figure on this page is:
The annual result is then divided by 12, 26 or 52 to provide monthly, fortnightly and weekly equivalents.
Actual employer payroll amounts can differ because PAYG withholding tables operate on individual pay periods and include their own rounding rules.
Does Superannuation Reduce Take-Home Pay?
Ordinary employer superannuation guarantee contributions are generally separate from an employee’s take-home salary where the stated salary is exclusive of super.
The optional super field on this calculator therefore displays an estimated employer contribution separately rather than subtracting it from taxable income.
Salary-packaging, salary-sacrifice and total-remuneration-package arrangements can work differently.
Resident vs Foreign Resident Tax Rates
Australian income-tax residency is not necessarily the same as citizenship or visa status.
Foreign residents generally do not receive the standard resident tax-free threshold and can be subject to a different tax schedule.
This calculator includes a basic foreign-resident option, but complex residency, part-year residency and working-holiday-maker circumstances should be checked separately.
Australian Income Tax Calculator Assumptions
This calculator assumes:
- The entered amount represents annual taxable income;
- A full financial year is being calculated;
- Standard individual resident rates apply when resident is selected;
- No tax offsets are included;
- No HELP or other study-loan repayments are included;
- No Medicare levy surcharge is included;
- The optional Medicare levy is a simplified estimate;
- No capital gains discount calculation is performed;
- No deductions are calculated automatically;
- No private health insurance rebate adjustment is included;
- No salary packaging is modelled;
- Superannuation is shown separately where selected; and
- Results are estimates rather than an ATO assessment.
Related Australian Finance Calculators
PAYG Income Tax Calculator FAQs
What are the Australian income tax rates for 2026–27?
Australian resident taxpayers generally have a tax-free threshold to $18,200, followed by marginal rates of 15% to $45,000, 30% to $135,000, 37% to $190,000 and 45% above $190,000.
What is the tax-free threshold in Australia?
For a full-year Australian resident taxpayer under the standard individual rates, the tax-free threshold is generally $18,200.
Is PAYG withholding the same as my final income tax?
No. PAYG withholding is money withheld during the year toward your expected tax liability. Your final tax position is determined after your tax return takes account of taxable income, deductions, offsets and other applicable items.
Does entering a higher tax bracket mean all my income is taxed at that rate?
No. Australian income tax uses marginal rates. Only the portion of income falling within a particular bracket is taxed at that bracket’s rate.
Does this calculator include the Medicare levy?
It can include a simplified 2% Medicare levy estimate when the option is selected. It does not fully calculate low-income reductions, family thresholds, exemptions or the Medicare levy surcharge.
Does this calculator include HELP or HECS repayments?
No. Study and training support loan repayments are not included in this calculator.
Why is my payslip PAYG amount different from this calculator?
Employer withholding uses ATO pay-period tables and formulas and can depend on TFN declaration choices, tax-free threshold claims, study loans, Medicare adjustments and payroll rounding. This calculator instead estimates annual tax and converts the resulting take-home amount into pay-period equivalents.
Is Easy Calculator affiliated with the ATO?
No. EasyCalculator.com.au is an independent calculator website and is not affiliated with the Australian Taxation Office or the Australian Government.