Australia Income Tax Calculator (2026–27)
Income tax, Medicare levy, Medicare Levy Surcharge & LITO. Enter your income — no button, results update as you type.
Before tax. Assumes you’re an Australian tax resident for the full year and this figure (plus any other taxable income below) is already your taxable income — this tool doesn’t model work-related deductions.
Added directly to employment income to form taxable income — e.g. bank interest, or a second job.
Only matters above the MLS income threshold. Left unanswered, we show $0 surcharge with a prompt rather than assuming you’re covered.
Australia Income Tax Calculator (2026–27)
This calculator estimates your 2026–27 Australian income tax — the income year running from 1 July 2026 to 30 June 2027. Enter your income and the numbers update immediately; there’s nothing to submit and nothing to sign up for. It covers the five resident tax brackets, the 2% Medicare levy (including the low-income reduction), the optional Medicare Levy Surcharge for people without private hospital cover, and the Low Income Tax Offset (LITO) — showing your taxable income, tax bracket by bracket, and your exact take-home pay, both annually and monthly.
2026–27 Resident Tax Brackets
| Taxable income | Tax on this income |
|---|---|
| $0 – $18,200 | Nil |
| $18,201 – $45,000 | 15c for each $1 over $18,200 |
| $45,001 – $135,000 | $4,020 plus 30c for each $1 over $45,000 |
| $135,001 – $190,000 | $31,020 plus 37c for each $1 over $135,000 |
| $190,001 and over | $51,370 plus 45c for each $1 over $190,000 |
These figures are for full-year Australian tax residents and don’t include the Medicare levy. The second bracket dropped from 16% (2025–26) to 15% this year — the second stage of the government’s legislated personal tax cuts, with a further cut to 14% already legislated for 1 July 2027. Unlike the USA or Canada, Australian income tax is federal-only — there’s no separate state or territory income tax to add on top.
The Medicare Levy — 2% (With a Low-Income Reduction)
On top of income tax, most residents pay a 2% Medicare levy on their taxable income. If your taxable income is at or below $28,011 you pay nothing; between $28,011 and $35,013 it phases in at 10 cents for every dollar above $28,011 (whichever is lower — 10% of the excess, or the full 2% — always applies); above $35,013 you pay the full 2%. These are the ATO’s most recently published thresholds — labelled “2025–26” on the official page, since the 2026–27-specific figures haven’t been separately released yet at the time of writing — and this calculator will be updated the moment the ATO publishes new ones.
If you’re entitled to the Seniors and Pensioners Tax Offset (SAPTO), your thresholds are higher: $44,268 lower / $55,335 upper. This calculator models the single, no-dependants version of the reduction; a more complex family-income-based reduction exists for couples and sole parents but isn’t modeled here.
Medicare Levy Surcharge (MLS) — Only If You Skip Private Cover
| Single income | MLS rate |
|---|---|
| $105,000 or less | 0% |
| $105,001 – $123,000 | 1% |
| $123,001 – $164,000 | 1.25% |
| Over $164,000 | 1.5% |
The MLS only applies if you don’t hold an appropriate level of private hospital cover and your income is above the base tier — and when it does apply, it’s charged on your whole income at that tier’s rate, not just the amount above the threshold. Hold private hospital cover and the MLS never applies, regardless of income. This calculator uses taxable income as a proxy for “income for MLS purposes” — it doesn’t ask about reportable fringe benefits or investment losses, which a small number of taxpayers would need added in for a fully precise figure.
Low Income Tax Offset (LITO)
LITO is applied automatically — no need to claim it. You get the full $700 if your taxable income is $37,500 or less; between $37,501 and $45,000 it’s $700 minus 5 cents per dollar above $37,500; between $45,001 and $66,667 it’s $325 minus 1.5 cents per dollar above $45,000; and $0 above $66,667. LITO only ever reduces your income tax — it can’t reduce the Medicare levy or MLS, and it can’t push your tax below $0 or create a refund on its own.
How We Calculate Your Tax
- Add your employment income and other taxable income to get taxable income.
- Run taxable income through the five resident tax brackets to get base income tax.
- Subtract your automatic LITO offset (floored at $0) to get income tax payable.
- Add the Medicare levy (2%, with the low-income reduction applied where relevant).
- If you’ve told us you don’t have private hospital cover, add the Medicare Levy Surcharge at the applicable tier.
- Income tax payable + Medicare levy + MLS = your total tax payable; taxable income minus that is your take-home.
Worked Example 1 — $60,000 Salary
Someone earning $60,000/year with no other income: base income tax is $8,520.00 (nil on the first $18,200, 15% on the next $26,800 = $4,020, 30% on the remaining $15,000 = $4,500). LITO reduces this by $100 (near the bottom of the second taper band) to $8,420.00 income tax payable. The Medicare levy is a full 2% = $1,200.00 (well above the reduction thresholds). Total tax: $9,620.00 — an effective rate of 16.03% and a combined marginal rate of 32% (30% bracket + 2% Medicare levy). Take-home: $50,380.00/year, or $4,198.33/month.
Worked Example 2 — $120,000, No Private Hospital Cover
Someone earning $120,000/year with no private hospital cover: base income tax is $26,520.00, LITO is $0 (above the $66,667 cutoff), Medicare levy is the full 2% = $2,400.00. Because taxable income is above the $105,000 MLS base tier and there’s no private cover, the Medicare Levy Surcharge applies at 1% of the full $120,000 = $1,200.00. Total tax: $30,120.00 — an effective rate of 25.10% and a combined marginal rate of 33% (30% + 2% + 1% MLS). Take-home: $89,880.00/year. The same person with private hospital cover would owe $1,200 less — the MLS alone often costs more than a year of basic hospital cover, which is why it’s designed as a nudge toward taking one out.
Who Should Use This Calculator?
Anyone earning salary, wages or other ordinary taxable income in Australia who wants a fast, realistic answer to “what will I actually take home” — before accepting a job offer, negotiating a raise, or deciding whether taking out private hospital cover is worth it to avoid the Medicare Levy Surcharge. It’s built for full-year Australian tax residents with straightforward income; if you arrived or left Australia partway through the year, or you’re a foreign resident or working holiday maker, your tax-free threshold and rates work differently and this tool isn’t calibrated for that.
What This Calculator Doesn’t Cover
In the interest of accuracy over false precision: this tool doesn’t model HECS/HELP or other study and training loan repayments (a separate compulsory repayment system, not income tax itself), the Superannuation Guarantee (paid by your employer on top of your salary, not deducted from it), foreign/non-resident or working holiday maker tax rates, part-year residency, the more complex family-income-based Medicare levy reduction for couples and sole parents, or the brand-new Working Australians Tax Offset (legislated, but not effective until the 2027–28 income year). It also assumes the income you enter is already your taxable income — it doesn’t model work-related deductions, negative gearing, or other adjustments that turn gross income into taxable income.
Cross-Checked Against an Official Government Calculator
Neither of the ATO’s own no-login calculators (the Simple tax calculator and the Income tax estimator) had been extended to cover the 2026–27 income year at the time this tool was built — both were still capped at 2025–26. Instead, we independently re-derived the 2026–27 bracket math directly from the ATO’s own published rate table, and cross-checked a sample of scenarios against moneysmart.gov.au’s Income tax calculator — an official Australian Government (ASIC) tool that does support the 2026-2027 financial year and combines income tax with the Medicare levy in one result. Figures matched to the dollar. We’ll re-run this cross-check once the ATO’s own calculators are updated to include 2026–27.
Important Income-Year Information
Income year: 2026–27 (1 July 2026 to 30 June 2027), with a 2025–26 toggle available for comparison. Last verified against official sources: 2026-09-10. This calculator will be updated, re-tested, and re-dated whenever the ATO publishes new Medicare levy thresholds, adjusts MLS tiers, or the Working Australians Tax Offset takes effect in 2027–28.
Official Sources
- ATO — Tax rates, Australian residents
- ATO — Medicare levy reduction for low-income earners
- ATO — Medicare Levy Surcharge income, thresholds and rates
- ATO — Low income tax offset
- ATO — Working Australians tax offset (from 2027-28)
- moneysmart.gov.au — Income tax calculator (official cross-check tool)
Frequently Asked Questions
What are the Australian income tax brackets for 2026-27?
0% up to $18,200, 15% from $18,201–$45,000, 30% from $45,001–$135,000, 37% from $135,001–$190,000, and 45% above that — plus a separate 2% Medicare levy.
Is the Medicare levy included in my income tax?
It’s calculated separately at 2% of taxable income, with a reduction below $35,013 (single, latest published threshold), phased in at 10c per dollar above $28,011.
What is the Medicare Levy Surcharge and do I have to pay it?
An extra 1-1.5% that applies only if you lack private hospital cover and earn above $105,000 (single, 2026-27). Cover means it never applies, regardless of income.
What is the Low Income Tax Offset (LITO)?
An automatic offset worth up to $700, tapering to $0 by $66,667 taxable income. Reduces income tax only, never the Medicare levy or surcharge.
Does this calculator include HECS/HELP repayments or superannuation?
No — both are separate systems from income tax itself and aren’t modeled here.
This calculator provides an estimate based on the tax rules and assumptions stated above. It models Australian tax residents with salary/wage-style taxable income only — not foreign/non-resident or working holiday maker rates, part-year residency, HECS/HELP repayments, superannuation, or the family-income-based Medicare levy reduction. Your actual tax liability may differ depending on your personal circumstances. Check ato.gov.au or a registered tax agent for advice about your specific situation.
