Useful next calculations
Rates and sources, 2026–27
Australian resident income tax for 2026–27, including the 15% rate to $45,000 after Stage 3, LITO, Medicare levy and optional MLS.
| Band or figure | Rate |
|---|---|
| Tax-free threshold | $18,200 |
| 15% band | $18,201 – $45,000 |
| Tax at $45,000 before LITO | $4,020 |
| Medicare levy | 2% |
Source: ATO — individual income tax rates. Source checked for 2026–27.
When to use this calculator
- Before accepting a pay change, bonus or contribution arrangement.
- When you want a simple take-home or conversion estimate before payroll or filing.
- When you need to convert between hourly, monthly and annual pay.
- When you want to compare two pay scenarios using the same assumptions.
A worked example
These are the example figures the calculator opens with.
| Input | Value |
|---|---|
| Annual Taxable Income (A$) | A$85,000 |
| Residency Status | Australian Resident |
| Private Hospital Cover? | Yes — no MLS |
For those figures the calculator returns:
- Income tax: A$16,020.00
- Medicare levy: A$1,700.00
- Medicare levy surcharge: A$0.00
- Total tax: A$17,720.00
- Effective rate: 20.80%
- Take-home: A$67,280.00
- Monthly: A$5,606.67
How to read your results
Income Tax
Review this figure alongside gross income and the local tax rules that apply to you. It is a planning estimate, not a filing result.
Total Tax
Review this figure alongside gross income and the local tax rules that apply to you. It is a planning estimate, not a filing result.
Effective Rate
The effective rate lets you compare options on a like-for-like basis rather than being misled by different compounding periods or fee structures.
Method & assumptions
This calculator applies the Australian Taxation Office’s 2026–27 personal income tax rates, which incorporate the Stage 3 tax cuts effective from 1 July 2024. Three separate charges are modelled: income tax against the progressive bracket schedule for your residency type, the 2% Medicare Levy (with a phase-in for lower incomes between $28,011 and $35,013 for singles, the latest figures the ATO has published), and the Medicare Levy Surcharge for residents without private hospital cover earning above the $105,000 single threshold (2026–27). For Australian residents the Low Income Tax Offset (maximum $700) is subtracted from gross income tax before the final bill is calculated. Take-home pay is your gross income minus all three charges.
This calculator models standard employment income only. It does not include the tax treatment of capital gains, rental income, franking credits, salary-packaged fringe benefits, the Seniors and Pensioners Tax Offset (SAPTO), or foreign income. HECS-HELP compulsory repayments are also excluded — use our dedicated HECS-HELP Repayment Calculator for those. Rates are indicative only; for an official assessment of your tax position, lodge via myTax or consult a registered tax agent.
Common mistakes
- Using an assumption that is not supported by a current local quote, bill, statement or official source.
- Treating a generic estimate as a lender, provider, payroll or tax authority decision.
- Mixing monthly and annual inputs without converting them consistently.
- Testing only one scenario instead of checking how a cautious assumption changes the result.
What to do next
- Run a second scenario with a cautious assumption so you can see the downside clearly.
- Compare the result with the related calculators below before making a decision.
- Check current local rules, eligibility and provider terms before applying or committing money.
- Keep a record of the assumptions so you can update the estimate when a quote, bill or pay figure changes.