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SAGVIM
Australia · 2026–27 income year

Australia income tax calculator 2026–27

Estimate your annual income tax and Medicare levy from your taxable income, including the Low Income Tax Offset, with a line-by-line breakdown.

Tax year: 2026–27 (1 July 2026 to 30 June 2027)Rules last reviewed:

1. Check this calculator covers you

This calculator models an individual Australian tax resident. Answer the questions below. If your circumstances differ (such as having a spouse or dependants), the calculator will provide a baseline estimate with clear guidance.

I am an Australian resident for tax purposes for the whole of the 2026–27 income year (1 July 2026 to 30 June 2027).

Part-year residents and foreign residents are taxed on different rates.

I will not have a spouse (married or de facto) on 30 June 2027.

A spouse can change how the Medicare levy low-income reduction works.

I have no dependent children or dependent students.

Dependants can change the Medicare levy reduction (family rules).

I am not entitled to the seniors and pensioners tax offset (SAPTO).

SAPTO changes the offsets applied and the Medicare levy thresholds.

I am not eligible for a Medicare levy exemption.

An exemption removes or reduces the levy.

I am not under 18 with eligible unearned income (for example investment income).

Special rates and a different LITO limit apply to minors with this income.

2. Enter your taxable income

Taxable income is your income after deductions. It is not your gross salary. Work it out using the ATO’s guidance. From 2026–27 that can include an automatic standard deduction of up to $1,000 for work-related expenses (reduced by the work-related expenses you claim), which this calculator does not apply for you. Do not subtract any deduction you are unsure applies to you.

3. Your estimate

Answer all six questions to see an estimate. 6 still to answer.

What this estimate does not include

  • The Medicare levy surcharge (it is not calculated).
  • HELP/HECS and other study or training loan repayments.
  • PAYG withholding, take-home pay and superannuation.
  • Offsets other than the Low Income Tax Offset, family reductions of the Medicare levy, and special deductions.
  • Unusual circumstances, such as part-year residency or income taxed at special rates.

This is an estimate, not a tax return or an official assessment. The ATO works out your actual tax.

How the estimate is calculated

  1. Income tax is worked out on your taxable income using the 2026–27 resident rates (below).
  2. LITO is subtracted from that tax, but never by more than the tax itself. It is not refundable.
  3. The Medicare levy is added. It is 2% of taxable income, reduced for low incomes: nil at or below $28,011.00, and between $28,011.00 and $35,013.00 the lesser of 2% of taxable income and 10% of the amount above $28,011.00. LITO is not applied against the levy.
  4. The estimated total is income tax less LITO plus the Medicare levy. The marginal rate is the extra total on one more dollar of taxable income, so it includes the LITO phase-out and the levy’s low-income phase-in.

Rounding

All amounts are calculated exactly in cents, with no floating-point arithmetic. For a whole-dollar taxable income, only LITO between $45,001 and $66,667 can fall on a half-cent. This calculator rounds LITO to the nearest cent and rounds a half-cent up, so the amounts shown always add up to the total. This is SAGVIM’s own estimate convention, not an official ATO rounding rule, and the ATO calculates your actual assessment.

Rates and thresholds used (2026–27)

Resident income tax rates for 2026–27
Taxable incomeRate on each dollar in the band
$0.00 to $18,200.00Nil
$18,201.00 to $45,000.0015%
$45,001.00 to $135,000.0030%
$135,001.00 to $190,000.0037%
Over $190,000.0045%
  • LITO: $700.00 up to $37,500.00; then reduced by 5 cents for each dollar above $37,500.00, to $325.00 at $45,000.00; then reduced by 1.5 cents for each dollar above $45,000.00, ending at $66,667.00.
  • Medicare levy: 2%, with the single-person low-income reduction above. These thresholds are in law for 2025–26 and later income years. They can be changed by Parliament.

Limits of this calculator

This is an estimate of annual income tax and Medicare levy for one situation. It is not a tax return, an official assessment, tax advice, a salary calculator, a PAYG withholding calculator or a take-home pay calculator. Taxable income is not the same as gross salary: it is your income after deductions. Check your own circumstances with the ATO or a registered tax professional.

Privacy and updates

The income you type and your answers to the six questions are used in your browser to produce the estimate. This page does not send them to SAGVIM, save them in your browser or record them as analytics events. Like the rest of this site, visits to the page may be counted by website analytics where analytics is enabled; see the privacy policy and terms. The rules are checked against the sources below before this page is published, and the date of the last check is shown at the top of the page. If the law changes after that date, this page may be out of date until it is checked again.

Sources

Rules last reviewed on . Sources were retrieved on or before that date.

Frequently asked questions

Is this the same as my salary or take-home pay?

No. The calculator starts from taxable income, which is your income after deductions. It does not use gross salary, does not calculate PAYG withholding and does not show take-home pay.

Which taxable income should I enter?

Enter your estimated taxable income for 2026–27: your income after the deductions you can claim, not your gross salary. From 2026–27, an Australian resident with employee-type income (assessable labour income) can have a standard deduction of up to $1,000 for work-related expenses, reduced by any such expenses they claim. This calculator does not apply it for you. Use the ATO's guidance to work out your taxable income, and do not subtract any deduction you are unsure applies to you.

Why might no result be shown for me?

This calculator models an Australian resident for tax purposes with standard personal income. If you indicate you are a foreign or part-year resident, or a minor with eligible unearned income, no estimate is shown because those situations involve different statutory tax schedules and special rules (such as Division 6AA) not modeled here. If you have a spouse or dependants, a standard baseline estimate is displayed with guidance on family Medicare levy reductions.

Does the estimate include the Medicare levy surcharge or HELP repayments?

No. The Medicare levy surcharge, HELP/HECS and other study loan repayments are not calculated. A notice is shown if your taxable income is above the single surcharge threshold of $105,000.

How is the Low Income Tax Offset (LITO) applied?

LITO reduces your income tax, down to nil at most. It is not refundable and it is not applied against the Medicare levy. The amount depends on your taxable income and ends above $66,667.

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