Income Tax Calculator
PAYG income tax and take-home pay with current ATO rates.
Income Details
Enter the annual taxable income you want to model.
Use taxable income after any deductions you're entitled to claim.
Estimated annual take-home pay
$77,480.00
Estimated net income for 2026-27 before other personal tax adjustments.
Estimated take-home pay
Annual net income divided into common pay periods. Actual payroll withholding can differ.
General Medicare threshold used for 2026-27: no levy at or below $28,011, phase-in to $35,013, then 2%.
Income Tax Bracket Breakdown
Only the portion of income inside each bracket is taxed at that bracket's rate.
| Bracket | Rate | Income in bracket | Tax |
|---|---|---|---|
| $0 – $18,200 | 0% | $18,200.00 | $0.00 |
| $18,201 – $45,000 | 15% | $26,800.00 | $4,020.00 |
| $45,001 – $135,000 | 30% | $55,000.00 | $16,500.00 |
| $135,001 – $190,000 | 37% | $0.00 | $0.00 |
| Over $190,000 | 45% | $0.00 | $0.00 |
Australian Salary & Tax Comparison
Uses the selected financial year, residency, Medicare and offset settings.
| Income | Tax | Medicare | Take-home |
|---|---|---|---|
| $50,000 | $5,270.00 | $1,000.00 | $43,730.00 |
| $75,000 | $13,020.00 | $1,500.00 | $60,480.00 |
| $100,000 | $20,520.00 | $2,000.00 | $77,480.00 |
| $125,000 | $28,020.00 | $2,500.00 | $94,480.00 |
| $150,000 | $36,570.00 | $3,000.00 | $110,430.00 |
| $200,000 | $55,870.00 | $4,000.00 | $140,130.00 |
How Australian PAYG Income Tax Is Calculated
PAYG (Pay As You Go) is the system employers use to withhold income tax from your salary or wages throughout the year, so you're not left with one large bill at tax time. This calculator estimates your full-year income tax, Medicare levy and take-home pay for the 2025–26, 2026–27 and 2027–28 financial years, for both Australian residents and foreign residents.
The Formula
Australia uses marginal tax brackets, so only the slice of income that falls inside a bracket is taxed at that bracket's rate — moving into a higher bracket never reduces your take-home pay from the dollars already taxed at lower rates.
PAYG Withholding vs Annual Income Tax
Employers withhold tax from each pay using ATO pay-period withholding schedules, which is why your payslip's PAYG amount can differ from this calculator's annual estimate divided evenly by pay period — withholding also depends on your TFN declaration, study loans, tax offset declarations, Medicare adjustments, bonuses and rounding.
Worked Example
A resident earning $120,000 in 2026–27, with Medicare and LITO applied, pays an estimated $28,920 in tax and Medicare levy, for take-home pay of $91,080 a year (about $3,503 a fortnight). At $150,000, estimated tax and Medicare come to $39,570, leaving $110,430 take-home (about $4,247 a fortnight) — both crossing into a higher marginal bracket but only paying that higher rate on the income above the bracket threshold.
Medicare Levy Assumptions
For a standard resident individual, this calculator uses a 2% Medicare levy above the relevant general low-income phase-in range for the selected financial year. It doesn't model family thresholds, seniors and pensioners thresholds, exemptions, the Medicare levy surcharge or private-health adjustments.
Low Income Tax Offset (LITO) & the 2027–28 Working Australians Tax Offset
The optional LITO calculation follows the standard resident rules: up to $700 at $37,500 taxable income or below, then a legislated taper to $0 at $66,667. It's non-refundable and can't reduce income tax below zero. From 2027–28, a new Working Australians Tax Offset applies for eligible residents with qualifying labour income — because eligibility depends on the type of income earned, it's approximated here (capped at $250) and only applied when you select it.
Frequently Asked Questions
- How much tax do I pay in Australia?
- It depends on your taxable income and residency. Australia uses marginal tax rates with a $18,200 tax-free threshold for residents, then increasing rates of 15% (2026–27), 30%, 37% and 45% at higher brackets, plus a 2% Medicare levy for most residents above a low-income threshold. Enter your income above to see your exact estimated tax, Medicare levy and take-home pay.
- How do I calculate PAYG tax?
- PAYG (Pay As You Go) tax is calculated by applying Australia's marginal tax brackets to your taxable income, then subtracting any tax offsets you're entitled to (like LITO) and adding the Medicare levy. Only the portion of income inside each bracket is taxed at that bracket's rate — this calculator does the bracket-by-bracket maths for you and shows the full breakdown.
- How is PAYG withholding different from my final tax bill?
- PAYG withholding is what your employer deducts from each pay using ATO withholding schedules, which work on a per-pay-period basis and factor in your TFN declaration, study loans, Medicare adjustments and irregular payments. This calculator estimates your annual tax and converts the result into monthly, fortnightly and weekly equivalents — it won't exactly match a single payslip's withholding, but it's a reliable guide to your overall annual position.
- How much tax do I pay on $120,000 a year?
- On $120,000 taxable income in 2026–27 (Australian resident, Medicare levy and LITO applied), estimated income tax and Medicare levy come to $28,920, leaving take-home pay of about $91,080 a year — roughly $3,503 a fortnight or $1,752 a week. Your marginal rate at this income is 30%.
- How much tax do I pay on $150,000 a year?
- On $150,000 taxable income in 2026–27 (Australian resident, Medicare levy applied, no LITO at this income level), estimated income tax and Medicare levy come to $39,570, leaving take-home pay of about $110,430 a year — roughly $4,247 a fortnight or $2,124 a week. Your marginal rate at this income is 37%.
- How do I calculate my effective tax rate?
- Your effective tax rate is your total tax and Medicare levy divided by your total taxable income, shown as a percentage — it's the average rate you actually pay across all your income, not the rate on your last dollar earned (that's your marginal rate). This calculator shows both figures side by side so you can see the difference.
- How is Medicare taxable wages / the Medicare levy calculated?
- For most Australian residents, the Medicare levy is 2% of taxable income above a low-income threshold, with a 10-cent-in-the-dollar phase-in just above that threshold to avoid a sudden jump. This calculator uses the general individual threshold for the selected financial year — family thresholds, seniors and pensioners thresholds, exemptions and the separate Medicare levy surcharge aren't fully modelled.
- What is the current PAYG tax rate in Australia?
- For Australian residents the tax-free threshold is $18,200, then marginal rates of 15% (2026–27) or 14% (2027–28) up to $45,000, 30% up to $135,000, 37% up to $190,000, and 45% above that. Foreign residents pay 30% from the first dollar up to $135,000, with no tax-free threshold, LITO or Medicare levy.
- Is this an individual PAYG calculator, or does it cover businesses?
- This is an individual PAYG income tax calculator for salary and wage earners. It doesn't cover business activity statements (BAS), company tax rates, or PAYG instalments paid by businesses and sole traders on investment or business income.
- Does this include HELP/HECS or the Medicare levy surcharge?
- No. Study and training support loan (HELP/HECS) repayments and the Medicare levy surcharge both depend on extra information this calculator doesn't collect, so they're not included in the estimate.