What are the Australian tax brackets for 2025-26?

For Australian residents in FY 2025-26: $0–$18,200 is tax-free; $18,201–$45,000 is taxed at 16%; $45,001–$135,000 at 30%; $135,001–$190,000 at 37%; and $190,001+ at 45%. Non-residents pay 30% on the first $135,000.

How is the Medicare levy calculated in Australia?

The Medicare levy is 2% of your taxable income for most Australian residents. If your income is below $26,000, you pay no Medicare levy. Between $26,000 and $32,500, a reduced rate applies (10% of the amount over $26,000). Non-residents do not pay the Medicare levy.

When do I have to repay my HECS-HELP debt?

HELP repayments are compulsory once your repayment income exceeds $54,435 for FY 2025-26. Repayment rates range from 1% to 10% of your total income depending on which threshold you fall into.

Australian Income Tax Calculator 2025–26

How Australian Income Tax Works in 2025–26

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.

Income Tax by State

While tax rates are federal, salaries and cost of living vary by state. View state-specific guides: NSW, Victoria, Queensland, Western Australia, South Australia, Tasmania, ACT, and Northern Territory.

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.