Fair Dinkum Money

Income tax

Income tax calculator 2025–26 & 2026–27

Resident individual rates including the Medicare levy, low income tax offset and compulsory HELP repayments. From 1 July 2026 the 16% bracket dropped to 15%, and it falls again to 14% from 1 July 2027 — flip the year to see the difference on your salary.

$/yr

Salary plus other income, minus deductions

$

Leave at 0 if you have no study loan. Repayments are capped at your balance.

Take-home pay · FY2026-27

$77,480

$6,457/month · total tax $22,520 · effective tax rate 22.5%

ComponentAmount
Tax on taxable income$20,520
Low income tax offset−$0
Medicare levy (2%)$2,000
Total tax payable$22,520
Marginal rate (incl. Medicare)32%
vs FY2025-26$268 less tax

Assumes Australian tax resident, single, no private health insurance surcharge and full Medicare levy above the low-income threshold ($28,011 for 2025–26; later years use the same figure until the ATO publishes indexed thresholds). HELP repayments use taxable income as repayment income, so they ignore reportable fringe benefits, investment losses and reportable super. The 2026–27 and 2027–28 rates reflect the legislated cuts of the 16% bracket to 15% and then 14%.

How your tax is worked out

Australian residents pay tax in bands: nothing on the first $18,200, then a higher rate on each band of income above that. The calculator applies those bands to your taxable income, subtracts the low income tax offset (worth up to $700, and only able to reduce tax to zero), then adds the 2% Medicare levy.

If you enter a HELP balance, the compulsory repayment for the year is shown separately and taken out of your take-home pay. It isn’t tax, but it’s withheld from your pay the same way.

What the calculator doesn’t cover

  • Non-residents and working holiday makers, who have different rates.
  • The Medicare levy surcharge and private health insurance rebate.
  • Family thresholds for the Medicare levy and the seniors and pensioners tax offset.
  • Superannuation: your employer’s contributions are on top of your salary.

Frequently asked questions

How much tax do I pay on $100,000 in 2026-27?

$20,520 in income tax plus $2,000 Medicare levy, for a total of $22,520. That leaves take-home pay of $77,480 a year, or about $2,980 a fortnight, before any HELP repayment.

How much tax do I pay on $60,000 in 2026-27?

$9,620 in total ($8,520 income tax, less a $100 low income tax offset, plus $1,200 Medicare levy), leaving $50,380 take-home.

What changed on 1 July 2026?

The rate on income between $18,201 and $45,000 fell from 16% to 15%. Everyone earning $45,000 or more saves $268 a year; people earning less save 1% of their income above $18,200. From 1 July 2027 the same band drops again to 14%, worth up to another $268.

Is the Medicare levy included?

Yes. The standard 2% Medicare levy is included, with the reduction for low-income singles. The Medicare levy surcharge, which applies to higher earners without private hospital cover, is not included.

How are HELP repayments worked out?

Since 1 July 2025 compulsory repayments are marginal, like income tax. In 2026-27 you repay nothing up to $69,528, then 15 cents for each dollar over $69,528, then $9,028 plus 17 cents for each dollar over $129,717. Above $186,050 it becomes a flat 10% of your whole repayment income. Repayments stop once your balance is cleared.

What is the difference between my marginal and effective tax rate?

Your marginal rate is the tax on your next dollar of income, which is what matters for a pay rise, bonus or capital gain. Your effective rate is your total tax divided by your total income, which is always lower because the first $18,200 is tax-free and lower bands are taxed at lower rates.