MyCalculatorHow this is calculated
Income tax is calculated progressively across the five 2026-27 resident brackets: 0% up to $18,200, 15% up to $45,000, 30% up to $135,000, 37% up to $190,000, and 45% above that. The Medicare levy is 2% of taxable income for most residents, with no levy below $28,011 and a partial 10%-of-excess levy between $28,011 and $35,014.
Worked example
On $70,000 taxable income: tax is $11,520 (the second bracket cut to 15% from 1 July 2026 applies here). The Medicare levy is the full 2% since income exceeds $35,014, adding $1,400. Estimated take-home: $57,080.
Assumptions & limitations
- Resident individuals only — non-residents have no tax-free threshold and different rates.
- Does not include the Low Income Tax Offset (LITO), which would reduce tax further for low-to-middle incomes.
- Does not include HECS/HELP student loan repayments or superannuation guarantee contributions.
- Does not include the Medicare Levy Surcharge, which applies to higher earners without private hospital cover.
Sources
ATO individual income tax rates for 2026-27, effective 1 July 2026 under the legislated cost-of-living tax cuts. See our sources page.
Frequently asked questions
Does this include my HECS/HELP debt?
No. HECS/HELP repayments use a separate marginal repayment system on top of income tax and are not included here.
What is LITO?
The Low Income Tax Offset reduces tax payable for lower-income earners. It's not modeled in this calculator, so your actual tax may be somewhat lower than shown if you're eligible.
Why did the second bracket rate change?
The rate on income between $18,201–$45,000 dropped from 16% to 15% from 1 July 2026, the second phase of legislated cost-of-living tax cuts.