Which tax brackets does this use?

It uses the ATO resident individual brackets: nil up to 18,200, then 19% to 45,000, 32.5% to 120,000, 37% to 180,000, and 45% above 180,000. Confirm the exact brackets for the tax year you are filing.

What is the Medicare levy?

The Medicare levy is generally 2% of taxable income for Australian residents, helping fund the public health system. Low-income earners and some exempt categories pay a reduced rate or none at all.

What is the Low Income Tax Offset (LITO)?

LITO reduces tax for lower earners. It is 700 AUD up to 37,500 of income, then phases out at 5 cents per dollar to 45,000, and at 1.5 cents per dollar from 45,000 to 66,667, where it reaches zero.

Is the tax-free threshold included?

Yes. The first 18,200 AUD of taxable income is taxed at zero, provided you claim the tax-free threshold. This calculator assumes you are claiming it as a resident.

Does this include superannuation?

No. Superannuation is paid by your employer on top of your salary and is not part of income tax. Use the Australia Superannuation Calculator to estimate that separately.

Australia Income Tax Calculator

This calculator estimates Australian resident income tax under the Pay As You Go (PAYG) system. It applies the Australian Taxation Office (ATO) marginal tax brackets, adds the Medicare levy, and subtracts the Low Income Tax Offset (LITO) to show your annual and fortnightly take-home pay. It is a planning estimate for employees and contractors, not formal tax advice.

How it works

Marginal brackets: Income is taxed in slices. The first 18,200 is tax-free; income above each threshold is taxed at the marginal rate for that band only.
Medicare levy: Generally 2% of taxable income for residents, added to the income tax.
LITO offset: A non-refundable offset of up to 700 that reduces tax for lower earners and phases out as income rises.
Net pay: Take-home = taxable income − income tax − Medicare levy + the value of LITO that reduced your tax.

Example

On 90,000 AUD taxable income:

Bracket tax: 5,092 + 32.5% × (90,000 − 45,000) = 5,092 + 14,625 = 19,717.
Medicare levy: 2% × 90,000 = 1,800.
LITO: income above 66,667, so the offset is fully phased out (0).
Net annual: 90,000 − 19,717 − 1,800 = 68,483.

Notes

This uses the ATO resident brackets and the standard 2% Medicare levy. It does not model the Medicare levy surcharge, HELP/HECS repayments, or private health rebates. Always confirm the current year’s thresholds with the ATO. Everything is computed locally in your browser.