Enter a taxable income and an income year, and this works out the tax and the Medicare levy on it.
The rates come from the Commonwealth legislation rather than from a summary, and the page shows you which version applied and where it is published.
Works out income tax and the Medicare levy on a resident individual’s taxable income, using the statutory rate scale for the income year you choose.
Which set applies depends on the jurisdiction and the date you enter. Sources last checked 2026-08-30.
Commonwealth — Income tax
1 July 2024 to 30 June 2026
Income Tax Rates Act 1986 (Cth), Schedule 7 Part I — Resident taxpayers
Commonwealth — Income tax
1 July 2026 to 30 June 2027
Income Tax Rates Act 1986 (Cth), Schedule 7 Part I — Resident taxpayers
Commonwealth — Income tax
1 July 2027 onwards
Income Tax Rates Act 1986 (Cth), Schedule 7 Part I — Resident taxpayers
Commonwealth — Medicare levy
1 July 2026 onwards
Taxable income
Assessable income less allowable deductions — not your salary. Salary sacrifice, work-related deductions and investment losses all sit between the two, sometimes by a lot.
Income year date
Any date within the income year you want. Australian rates change on 1 July, and legislated changes mean the rates for a future year can differ from this year’s — so the year has to be stated rather than assumed.
The tax figure is the income tax on that taxable income. The Medicare levy is separate and shown separately, because they are imposed by different Acts and it is useful to see the split.
Your average rate — total tax over income — is always lower than your marginal rate, because the rates are progressive: only the income in the top bracket is taxed at the top rate. People routinely conflate the two and conclude that a pay rise will leave them worse off, which the progressive structure makes impossible.
The rates panel names the Act, the schedule and the period the rates apply to. That is the difference between an answer you can check and an answer you have to trust.
Every figure below is computed by the same calculator on this page, from the inputs described. Nothing here is typed in by hand, so an example cannot disagree with the tool.
Compare the total against the income to get the average rate. It is materially below the marginal rate on the last dollar earned, which is the progressive scale doing its work.
Roughly double the income of the previous example, and more than double the tax. That is what progressivity looks like, and it is also the reason deductions are worth more at higher incomes.
The rate scale is progressive: each band has a fixed amount plus a marginal rate on income above the band’s lower threshold. The calculator finds the band and applies that formula.
The Medicare levy is calculated separately under its own Act, including the shading arrangement that phases the levy in over a range of low incomes rather than applying it as a cliff.
Which version of the rates applies is resolved from the date you enter. Where legislated future changes exist, the appropriate scale for that year is used rather than the current one.
How every calculator on this site is built · Regulatory sources
An Australian tax resident
Foreign residents are taxed on a different scale with no tax-free threshold, and working holiday makers on another again. Neither is modelled.
The full-year Medicare levy
The levy is calculated on the income entered as though it were a full year at that level. Part-year residency changes this.
No offsets or surcharges
Tax offsets, the Medicare levy surcharge for higher earners without private hospital cover, HELP repayments and the private health rebate are all outside this calculation. Each can change what you actually pay.
It is not a tax return
This computes tax on a taxable income you supply. Arriving at the correct taxable income is the part that takes work, and it is where a registered tax agent earns their fee.
HELP and study loans are excluded
Compulsory repayments are calculated on repayment income, which is a different base again, and can add several thousand dollars.
The Medicare levy surcharge is not applied
Higher earners without private hospital cover pay an additional surcharge on top of the levy. Whether it applies depends on income tests and cover this calculator has no knowledge of.
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