- 2026-27 ATO tax rates
- Medicare levy 2%
- Effective & marginal rate
This is income tax and the Medicare levy on your taxable income. It does not add HELP/HECS (use the HECS/HELP calculator for that) and excludes offsets and the Medicare levy surcharge.
Income after tax
- 78.5% After-tax income $70,680
- 19.5% Income tax $17,520
- 2.0% Medicare levy $1,800
- Taxable income
- $90,000
- Total tax + levy
- −$19,320
- After tax, per month
- $5,890
How this is calculated
Australian income tax is progressive: each rate applies only to the income that falls inside its bracket, so your first $18,200 is always tax-free no matter how much you earn. On top of income tax, most people pay a 2% Medicare levy on taxable income, reduced for low-income earners through a phase-in band.
For 2026-27, resident income tax applies across these brackets:
| Taxable income | Rate on income in band |
|---|---|
| $0 – $18,199 | 0% |
| $18,200 – $44,999 | 15% |
| $45,000 – $134,999 | 30% |
| $135,000 – $189,999 | 37% |
| $190,000 and over | 45% |
Effective vs marginal rate
On a $90,000 taxable income the tax is about $17,520 plus a $1,800 Medicare levy, around $19,320, or an effective rate near 21%. Yet the marginal rate (the rate on your next dollar earned) is 30%. The gap matters: a pay rise or extra shift is taxed at the marginal rate, not your average, which is why the calculator shows both.
Income tax on common salaries (2026-27)
Income tax plus the 2% Medicare levy on a range of taxable incomes, and what you keep after both. HELP/HECS and offsets are not included.
| Taxable income | Income tax | Medicare | After tax | Effective |
|---|---|---|---|---|
| $60,000 | $8,520 | $1,200 | $50,280 | 16.2% |
| $80,000 | $14,520 | $1,600 | $63,880 | 20.2% |
| $100,000 | $20,520 | $2,000 | $77,480 | 22.5% |
| $120,000 | $26,520 | $2,400 | $91,080 | 24.1% |
| $150,000 | $36,570 | $3,000 | $110,430 | 26.4% |
Who this is for
Anyone estimating tax on a taxable income figure (a salary, a side income, or a projected total for the year). For your full pay packet including employer super and any study loan, use the take-home pay calculator; for the study-loan portion on its own, see the HECS/HELP calculator. For the full bracket rules, read the income tax brackets guide, and for how the levy is calculated, see the Medicare levy guide.
Assumptions & data caveats
- STILL DRAFT (draft:true). Verified against ATO on 2026-08-09: income-tax brackets, HELP/HECS marginal model, and super guarantee. NOT yet verifiable: Medicare levy low-income thresholds for 2026-27 (not published; placeholder in place).
- INCOME TAX: VERIFIED for 2026-27. Resident schedule: 0-$18,200 nil; $18,201-$45,000 15%; $45,001-$135,000 30%; $135,001-$190,000 37%; $190,001+ 45%. The second bracket was cut from 16% to 15% effective 1 July 2026 (legislated to fall to 14% from 1 July 2027).
- MEDICARE LEVY: UNVERIFIED for 2026-27. Rate 2%; singles shade-in of 10c per $1 over the lower threshold. The genuine 2026-27 singles thresholds are NOT yet published (indexed annually, typically announced ~May 2027 Budget). Values here ($28,011 lower / $35,013 upper) are the latest published 2025-26 singles figures used as a placeholder; replace once the ATO publishes 2026-27.
- HELP/HECS: now modelled with the MARGINAL system (2025-26 onwards): the rate applies only to income ABOVE each threshold, and total repayment is capped at 10% of repayment income (helpCapRate). Verified 2026-27 table: $0-$69,528 nil; $69,529-$129,717 15c per $1 over $69,528; $129,718-$186,050 $9,028 + 17c per $1 over $129,717; $186,051+ capped at 10% of total. Thresholds are indexed to average weekly earnings each year; reconfirm annually.
- SUPER GUARANTEE: VERIFIED. 12% for 2026-27 (reached its legislated 12% maximum on 1 July 2025; no further increases). Payday Super applies from 1 July 2026 (payment timing, not the rate).
- Repayment income is approximated as taxable income; the ATO definition adds back items such as reportable fringe benefits, reportable super contributions and net investment/rental losses.
Official sources
Disclaimer: This calculator provides estimates only and is not financial, tax, or legal advice. Figures are general in nature and may not reflect your circumstances. Verify against official sources or a qualified adviser before making decisions.
Frequently asked questions
What are the 2026–27 income tax rates? +
For Australian residents in 2026–27: nil on the first $18,200; 15% from $18,201 to $45,000; 30% from $45,001 to $135,000; 37% from $135,001 to $190,000; and 45% above $190,000. The second bracket was cut from 16% to 15% on 1 July 2026 and is legislated to fall again to 14% from 1 July 2027.
How does progressive tax work? +
Each rate applies only to the income that falls within its bracket, not to your whole income. So someone earning $50,000 pays nothing on the first $18,200, 15% on the next $26,800, and 30% only on the last $5,000, not 30% on everything. That is why your average (effective) rate is always lower than your top (marginal) rate.
What is the Medicare levy? +
Most taxpayers pay a 2% Medicare levy on taxable income. Low-income earners pay a reduced levy that phases in gradually above a lower threshold. This tool applies the 2% rate with the phase-in; it does not include the Medicare levy surcharge, which applies to higher earners without private hospital cover.
Does this include HELP/HECS or offsets? +
No. This calculator covers income tax and the Medicare levy only. It does not add compulsory HELP/HECS repayments (use the HECS/HELP calculator) and does not apply tax offsets such as the low-income tax offset, which can reduce the tax actually payable.
Are these figures exact? +
They are estimates. Income tax brackets for 2026–27 are legislated and verified, but the Medicare levy low-income thresholds for 2026–27 are not yet published; a placeholder is used until the ATO releases them. Confirm your position with the ATO or a registered tax agent.