# Income tax calculator Australia (2026-27)

Source: https://calculatax.com/tax/income-tax-calculator/
Title: Income Tax Calculator Australia 2026-27 | Calculatax
Last updated: 2026-11-07

This tax calculator estimates your income tax, Medicare levy, low income tax offset and HELP repayment for 2026-27, using the [ATO tax rates for Australian residents](https://www.ato.gov.au/tax-rates-and-codes/tax-rates-australian-residents). On a taxable income of $80,000 the total is **$16,120**, which leaves you $63,880. It also covers 2025-26 returns.

| Default result: $80,000, 2026-27, resident | Amount |
|---|---|
| Income tax before offsets | $14,520.00 |
| Low income tax offset | $0.00 |
| Medicare levy (2%) | $1,600.00 |
| HELP repayment | $0.00 |
| Total tax | $16,120.00 |
| Take-home pay a year | $63,880.00 |
| Take-home pay a fortnight | $2,456.92 |
| Average rate | 20.15% |
| Marginal rate, including Medicare | 32% |

*2026-27 resident rates, no HELP debt, private hospital cover held. Source: ATO.*

## Four steps from taxable income to your tax bill

Every result follows the same four steps, in this order. It starts from your taxable income, which is your assessable income minus deductions, and uses the bracket rates, offsets and levies of [income tax in Australia](https://calculatax.com/tax/).

1. **Apply the bracket rates.** Each band of income has its own rate. On $80,000 the first $18,200 is tax-free, the next $26,800 is taxed at 15% ($4,020) and the last $35,000 at 30% ($10,500). That makes $14,520 before offsets.
2. **Add the 2% Medicare levy.** The [Medicare levy](https://calculatax.com/tax/medicare-levy-calculator/) is 2% of taxable income, or $1,600 here.
3. **Subtract LITO and other offsets.** Offsets cut your tax dollar for dollar, but they can't take it below zero. At $80,000 the low income tax offset is nil.
4. **Add any HELP repayment.** A study loan repayment goes on last. In 2026-27 it's 15 cents for each dollar of repayment income above $69,528.

### More detail on each step

Only the dollars inside a band pay that band's rate. Moving from $80,000 to $81,000 adds $300 of income tax, far less than 30% of the whole salary.

A single person pays no Medicare levy up to $28,011 under the latest announced (2025-26) thresholds. Family thresholds start at $47,238, plus $4,338 for each dependent child. Without private hospital cover, the surcharge adds 1% to 1.5% once income for surcharge purposes passes $105,000.

The low income tax offset is $700 up to $37,500 and reaches nil at $66,667. With the $18,200 threshold, it means no income tax on taxable income up to $22,866 in 2026-27, against $22,575 in 2025-26. Other [tax offsets](https://calculatax.com/tax/tax-offsets/) on your return, such as SAPTO for seniors, come off at this step too, though this calculator applies LITO only.

With a HELP debt, the repayment on $80,000 is $1,570.80. The [HECS repayment calculator](https://calculatax.com/tax/hecs-help-repayment-calculator/) would show a total bill of $17,690.80.

## Worked example: $80,000 in 2026-27 compared with 2025-26

The card follows the salary you enter above. The worked example beside it stays at $80,000. The [tax cuts](https://calculatax.com/tax/tax-cuts/) page explains what changed.

Say you earn a taxable income of $80,000 in both years and have a HELP debt. On the same pay, you keep $647.20 more in 2026-27.

### See the full comparison

| $80,000 taxable income | 2025-26 | 2026-27 | Change |
|---|---|---|---|
| Income tax | $14,788.00 | $14,520.00 | −$268.00 |
| Medicare levy | $1,600.00 | $1,600.00 | $0.00 |
| Total without HELP | $16,388.00 | $16,120.00 | −$268.00 |
| HELP repayment | $1,950.00 | $1,570.80 | −$379.20 |
| Total with HELP | $18,338.00 | $17,690.80 | −$647.20 |
| Take-home pay with HELP | $61,662.00 | $62,309.20 | +$647.20 |

*Resident rates for each year; HELP thresholds of $67,000 (2025-26) and $69,528 (2026-27). Source: ATO.*

### Where the $647.20 comes from

The Medicare levy stays the same because it's a flat 2% at this income. The $268 comes entirely from the 15% rate. The $26,800 slice from $18,201 to $45,000 was taxed at 16% in 2025-26, and one percentage point of $26,800 is $268, or about $5.15 a week.

The HELP saving comes from the higher repayment threshold. It rose $2,528, from $67,000 to $69,528, and 15% of $2,528 is $379.20.

## Which income year to pick for a past, current or future return

Pick the year you earned the income, which may differ from the year you lodge. Australia's income year runs from 1 July to 30 June. To see the years side by side, use [what changed on 1 July](https://calculatax.com/tax/what-changed-1-july/).

### 2025-26

Pick 2025-26 for income earned from 1 July 2025 to 30 June 2026. If you lodge your own 2025-26 return, it was due by 31 October 2026 (2 November because that date fell on a weekend). Lodging through a registered tax agent may give you longer.

### 2026-27

Pick 2026-27 to estimate tax on pay you receive from 1 July 2026 to 30 June 2027. The $1,000 standard deduction for work-related expenses starts in this year, so the first returns using it are lodged from July 2027.

### 2027-28

In 2027-28 the 15% rate falls to 14% and the $250 Working Australians Tax Offset begins. On $80,000 the rate cut alone would trim income tax by another $268.

## Why your annual tax rarely matches what was withheld

Your employer withholds tax using formulas that assume you earn the same amount every pay for a full year. Your actual tax is worked out on what you really earned, less deductions.

- **$311**: Withheld each week on $80,000 ($16,172 over the year)
- **$1,348**: Withheld each month if paid monthly ($16,176 over the year)
- **$16,120**: Assessed tax ($52 less than the weekly total)
- **$30**: Extra withheld each week for HELP ($1,560 a year, against a $1,570.80 repayment)

Bigger gaps come from changes during the year. A $1,000 deduction at this income cuts your bill by $320. A second job, a part-year start or a HELP debt you haven't told every employer about can move it the other way.

The [pay calculator](https://calculatax.com/salary/pay-calculator/) shows take-home pay by pay cycle, the [PAYG withholding calculator](https://calculatax.com/tax/payg-withholding-calculator/) shows the amount per pay, and the [tax return calculator](https://calculatax.com/tax-return/tax-refund-calculator/) compares the year's withholding with this estimate. Employers' row-by-row figures are in the [ATO tax tables](https://calculatax.com/tax/tax-tables/).

## Income this calculator does not cover: capital gains, business and trust income

The calculator applies the rates to the one taxable income figure you enter. It doesn't build that figure from different types of income. The residency setting switches between the resident, foreign resident and working holiday maker scales, and assumes the same status all year. Our other [tax calculators](https://calculatax.com/) cover more situations.

### What's left out

A net capital gain, sole trader profit or trust distribution is part of taxable income, but each has its own rules for working out the amount. Franking credits, foreign income tax offsets, employee share schemes and lump-sum payments aren't modelled either. The private health insurance rebate and offsets other than LITO are also left out, though seniors can use the [SAPTO calculator](https://calculatax.com/tax/sapto-calculator/).

The result will also differ if you were a resident for only part of the year, or if family income changes your Medicare levy. In those cases your notice of assessment from the ATO can be well away from this estimate, and a registered tax agent can work through the details.

## Tax on common salaries from $50,000 to $200,000

| Salary | Income tax | LITO | Medicare levy | Total tax | Take-home | Average rate | Marginal rate |
|---|---|---|---|---|---|---|---|
| [$50,000](https://calculatax.com/tax/on/50000/) | $5,520 | $250 | $1,000 | $6,270 | $43,730 | 12.54% | 33.5% |
| [$60,000](https://calculatax.com/tax/on/60000/) | $8,520 | $100 | $1,200 | $9,620 | $50,380 | 16.03% | 33.5% |
| [$70,000](https://calculatax.com/tax/on/70000/) | $11,520 | $0 | $1,400 | $12,920 | $57,080 | 18.46% | 32% |
| [$90,000](https://calculatax.com/tax/on/90000/) | $17,520 | $0 | $1,800 | $19,320 | $70,680 | 21.47% | 32% |
| [$110,000](https://calculatax.com/tax/on/110000/) | $23,520 | $0 | $2,200 | $25,720 | $84,280 | 23.38% | 32% |
| [$130,000](https://calculatax.com/tax/on/130000/) | $29,520 | $0 | $2,600 | $32,120 | $97,880 | 24.71% | 32% |
| [$160,000](https://calculatax.com/tax/on/160000/) | $40,270 | $0 | $3,200 | $43,470 | $116,530 | 27.17% | 39% |
| [$200,000](https://calculatax.com/tax/on/200000/) | $55,870 | $0 | $4,000 | $59,870 | $140,130 | 29.94% | 47% |

*2026-27 resident rates, no HELP debt, private hospital cover held. Marginal rate includes the Medicare levy. Source: ATO.*

At $50,000 and $60,000 the marginal rate is 33.5%, higher than at $90,000. LITO shrinks by 1.5 cents for every dollar above $45,000, and that adds to the 30% bracket rate and the 2% levy. The [marginal tax rate calculator](https://calculatax.com/tax/marginal-tax-rate-calculator/) maps the effect at any income, and the full rate tables are with the [Australian tax brackets](https://calculatax.com/tax/tax-brackets/).

## Questions about residency, taxable income, HELP and private cover

### How much tax do I pay?

It depends on your taxable income and residency. A resident on $80,000 pays $16,120 in 2026-27, including the Medicare levy, an average of 20.15%. A working holiday maker on the same income pays $17,250. A foreign resident pays $24,000 with no Medicare levy, because the 30% rate starts from the first dollar.

### What is taxable income?

It's your assessable income minus allowable deductions. Assessable income includes salary, wages, interest, rent and net capital gains. Deductions include work-related expenses, and from 2026-27 eligible workers can claim a $1,000 standard deduction without receipts. Tax rates, LITO and the Medicare levy all apply to taxable income, so gross pay isn't the starting point.

### How is income tax calculated?

Apply each bracket rate to the slice of income inside it, subtract offsets, then add the 2% Medicare levy. On $80,000 that's $4,020 for the 15% band plus $10,500 for the 30% band. No LITO applies, so income tax is $14,520. With the $1,600 levy, the total is $16,120 for 2026-27.

### How much tax should I have paid?

Compare your estimated bill with the tax withheld on your income statement. A resident on $80,000 should end up paying $16,120, plus $1,570.80 with a HELP debt. Earning $110,000 without private hospital cover adds a $1,100 Medicare levy surcharge. If what was withheld is close to those totals, little or nothing is owed or refunded.

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

## Sources

- [ATO: Tax rates, Australian residents](https://www.ato.gov.au/tax-rates-and-codes/tax-rates-australian-residents)
- [ATO: Personal income tax, new tax cuts for every Australian taxpayer](https://www.ato.gov.au/about-ato/new-legislation/in-detail/individuals/personal-income-tax-new-tax-cuts-for-every-australian-taxpayer)
- [ATO: Medicare levy reduction for low-income earners](https://www.ato.gov.au/individuals-and-families/medicare-and-private-health-insurance/medicare-levy/medicare-levy-reduction/medicare-levy-reduction-for-low-income-earners)
- [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 rates and repayment thresholds](https://www.ato.gov.au/tax-rates-and-codes/study-and-training-loan-minimum-repayment-income-and-rates)