Australia uses a progressive tax system, meaning you pay different rates on different portions of your income. You don't pay the highest rate on your entire income — only on the amount that falls within each bracket.

FY 2025–26 Tax Rates for Residents

The tax-free threshold remains at $18,200. Income between $18,201 and $45,000 is taxed at 16 cents per dollar. The 30% rate applies from $45,001 to $135,000, then 37% up to $190,000, and 45% on income above $190,000. These rates were updated as part of the Stage 3 tax cuts.

Medicare Levy

Most Australian residents pay a 2% Medicare levy on their taxable income. If your income is below $26,000, you're exempt. Between $26,000 and $32,500, a shade-in rate of 10% of the excess applies. Non-residents don't pay Medicare levy as they aren't eligible for Medicare benefits.

HELP/HECS Repayments

If you have a Higher Education Loan Program (HELP) debt — commonly known as HECS — compulsory repayments kick in once your repayment income exceeds $54,435 for FY 2025–26. Repayment rates are progressive, ranging from 1% to 10% of your total repayment income. These amounts are withheld by your employer through PAYG.

About This Calculator

This calculator provides estimates based on the published ATO rates for FY 2025–26. It does not account for tax offsets (like the Low Income Tax Offset), private health insurance surcharges, or other individual circumstances. For personalised tax advice, consult a registered tax agent or visit the Australian Taxation Office website.