# Tax return calculator: estimate your refund

Source: https://calculatax.com/tax-return/tax-refund-calculator/
Title: Tax Return Calculator 2026: Estimate Your Refund
Last updated: 2026-11-06

This tax return calculator estimates your refund or bill for 2025-26 or 2026-27 from income, tax withheld and deductions, using ATO rates. On a $68,000 salary with $1,200 of deductions and $11,200 withheld in 2025-26, tax and Medicare levy are $12,164, so you would **owe $964**.

| Default example, 2025-26 | Amount |
|---|---|
| Salary | $68,000 |
| Deductions | $1,200 |
| Taxable income | $66,800 |
| Income tax | $10,828 |
| Low income tax offset | $0 |
| Medicare levy (2%) | $1,336 |
| Total tax | $12,164 |
| Tax withheld | $11,200 |
| Estimated result | $964 owing |

*2025-26 resident rates, no HELP debt, private hospital cover held. Source: ATO.*

The 2025-26 self-lodger deadline moved to Monday 2 November 2026, because 31 October fell on a Saturday. Lodgment dates, myTax and agent options are set out in the [tax return guide](https://calculatax.com/tax-return/).

## How the ATO arrives at a refund or a bill

The ATO works out the tax you owe on your taxable income for the year, then subtracts the tax already withheld. A positive balance is a refund and a negative one is a bill.

1. **Add up assessable income.** That's salary, interest, dividends and other income.
2. **Subtract deductions.** What's left is your taxable income.
3. **Apply the rates and offsets.** Use the resident tax rates for the year, then subtract offsets such as the low income tax offset (LITO).
4. **Add the levies and HELP.** The 2% Medicare levy, any Medicare levy surcharge and any compulsory HELP repayment.
5. **Compare with what's been paid.** Set the total against tax withheld and any instalments paid.

Tax withheld comes from the income statements your employers finalise in myGov, plus any amounts a bank withheld because it didn't have your tax file number. PAYG instalments, paid by some investors and sole traders, count as well, so add them to the tax withheld figure.

The same steps sit behind the [tax calculator](https://calculatax.com/tax/income-tax-calculator/) for a full year of salary.

### Why LITO is nil in the default example

Income tax on $66,800 in 2025-26 is $4,288 plus 30% of the $21,800 above $45,000. LITO is nil, because it cuts out at $66,667, and this person sits $133 above that point.

Someone on $60,000 of taxable income would still get $100 of LITO, worked out as $325 minus 1.5 cents for every dollar above $45,000.

## Common reasons people owe tax

A bill usually means too little tax was withheld during the year. Withholding only knows about the job it comes from.

A second job often causes a bill. Take $40,000 from one employer and $28,000 from another in 2026-27. Tax and Medicare levy on $68,000 are $12,280.

| Two jobs, $40,000 + $28,000 | Tax withheld | Estimated bill |
|---|---|---|
| Tax-free threshold claimed with both employers | $5,408 | $6,872 |
| Tax-free threshold claimed with the first employer only | $9,204 | $3,076 |

*2026-27 Schedule 1, Scales 2 and 1, fortnightly pay. Source: ATO.*

Even when the second employer withholds at the no-tax-free-threshold rate, it treats $28,000 as your only income. It can't see that every dollar of it sits above $40,000.

Changing jobs mid-year is different. If the jobs don't overlap, each employer withholds as if its pay rate applied all year, so the tax-free threshold isn't counted twice.

Other common causes:

- Interest, dividends or rental profit with nothing withheld. In the default example, $500 of bank interest adds $160 of tax.
- A HELP debt your employer wasn't told about, so no HELP component was withheld.
- Income for surcharge purposes above the singles threshold without private hospital cover. It's $101,000 for 2025-26 and $105,000 for 2026-27.

## Deductions that change your result

A deduction cuts tax by your marginal rate, not by its full amount. In the default example, $1,200 of deductions saves $384, because each dollar was taxed at 30% plus the 2% Medicare levy.

### Why a deduction can be worth more with a HELP debt

HELP repayment income starts from taxable income. Without deductions, income of $68,000 is above the $67,000 repayment threshold for 2025-26 and triggers a $150 repayment. The $1,200 of deductions takes it to $66,800, so the repayment is nil.

For someone with a HELP debt, the deductions are worth $534, not $384. In 2026-27 the threshold rises to $69,528, so the same salary triggers no repayment with or without deductions.

From 2026-27, workers can claim a standard deduction of up to $1,000 for work-related expenses with no receipts, as the [ATO's page on the standard deduction for work-related expenses](https://www.ato.gov.au/individuals-and-families/income-deductions-offsets-and-records/deductions-you-can-claim/work-related-deductions/standard-deduction-for-work-related-expenses) explains. The Treasury Laws Amendment (Tax Reform No. 1) Act 2026 made it law. Returns using it are first lodged from July 2027.

On the same $68,000 salary, the three cases compare like this.

| Same $68,000 salary | 2025-26, $1,200 actual costs | 2026-27, $1,000 standard deduction | 2026-27, $1,200 actual costs |
|---|---|---|---|
| Taxable income | $66,800 | $67,000 | $66,800 |
| Income tax | $10,828 | $10,620 | $10,560 |
| Medicare levy | $1,336 | $1,340 | $1,336 |
| Total tax | $12,164 | $11,960 | $11,896 |
| Tax withheld | $11,200 | $12,324 | $12,324 |
| Result | $964 owing | $364 refund | $428 refund |

*2025-26 and 2026-27 resident rates. 2026-27 withholding is the Schedule 1 fortnightly amount of $474 on $2,615.38, times 26 pays, with the tax-free threshold claimed. Source: ATO.*

Tax falls by $204 in 2026-27 even with a smaller deduction, because the 16% rate became 15% from 1 July 2026. Keeping receipts for the full $1,200 would cut tax by a further $64, because the extra $200 of deductions is worth 32 cents in the dollar. If withholding stayed at $11,200, the 2026-27 result would be a $760 bill.

Deductions only count if you paid the cost yourself, weren't reimbursed and can link it to earning your income. The rules, record-keeping and common claims are set out under [tax deductions](https://calculatax.com/tax-return/tax-deductions/).

## Your estimate vs the notice of assessment

Your notice of assessment is the ATO's final figure, and it can differ from this estimate. This calculator models resident individuals with the inputs you enter, at the rates for the year you choose. It doesn't model:

- Offsets other than LITO, such as the seniors and pensioners tax offset or the private health insurance rebate.
- Medicare levy reductions for families. For 2026-27, the low-income thresholds haven't been announced, so the 2025-26 values are used.
- Capital gains, business income, foreign income or franking credits.
- ATO debts or earlier balances that reduce a refund.

Rounding can also move the result by a dollar or two. Pre-fill errors are another source of difference: if an income statement in myTax is wrong or missing, the assessment follows what was lodged, not what was earned.

Mid-year, the [YTD calculator](https://calculatax.com/salary/ytd-income-calculator/) projects your full-year income and withholding from your latest payslip, which you can then enter here.

## Tax return calculator questions: second jobs, interest income and HELP

### How much tax will I get back?

Your refund is the tax withheld minus the tax you owe. A $68,000 earner with the $1,000 standard deduction in 2026-27 owes $11,960. If the Schedule 1 amount of $12,324 was withheld, about $364 comes back. With a second job, both employers' withholding is counted, and a bill is common.

### How does tax back work?

Employers withhold tax from each pay based on that pay alone. After 30 June, the ATO works out your actual tax for the year and refunds any excess. HELP repayments are part of that tax: in 2025-26, someone on $68,000 with no deductions repays $150 because income passed the $67,000 threshold.

### How can I calculate my tax return?

Subtract deductions from income, apply the year's tax rates, take off offsets and add the 2% Medicare levy. Then compare the total with tax withheld. Include bank interest. On a $66,800 taxable income in 2025-26, $500 of interest adds $160 of tax, and banks withhold nothing if they have your tax file number.

### How do I estimate my tax refund?

Use the year-to-date gross pay and tax from your latest payslip, add other income and deductions, and run the numbers before 30 June. For a finished year, use the income statement in myGov instead. The default example gives a $964 bill for 2025-26 and a $364 refund for 2026-27.

*Estimates only, based on published rates for 2026-27. General information, not tax or financial advice.*

## Sources

- [ATO: Tax rates for Australian residents](https://www.ato.gov.au/tax-rates-and-codes/tax-rates-australian-residents)
- [ATO: Low income tax offset](https://www.ato.gov.au/individuals-and-families/income-deductions-offsets-and-records/tax-offsets/low-income-tax-offset)
- [ATO: Study and training support loans repayment thresholds](https://www.ato.gov.au/tax-rates-and-codes/study-and-training-loan-minimum-repayment-income-and-rates)
- [ATO: Standard deduction for work-related expenses](https://www.ato.gov.au/individuals-and-families/income-deductions-offsets-and-records/deductions-you-can-claim/work-related-deductions/standard-deduction-for-work-related-expenses)
- [ATO: The final countdown: ATO reminds taxpayers to lodge now](https://www.ato.gov.au/media-centre/the-final-countdown-ato-reminds-taxpayers-to-lodge-now)