Free tool
Income Tax Calculator
Work out your 2026–27 income tax, Medicare levy and take-home pay — per week, fortnight, month or year — at the ATO's current rates for Australian residents.
Your income
Take-home pay a fortnight
$2,980.00
$77,480 a year after tax and the Medicare levy
Tax a fortnight
$866.15
$22,520 a year, including the Medicare levy
Marginal rate
32%
On your next dollar, with the Medicare levy — average 22.5% overall
This year's tax cut
$268
Less tax than at 2025–26 rates, from the 16% rate falling to 15%
Your tax, bracket by bracket
Each rate applies only to the part of your income inside its band — earning more never makes you worse off.
| Income band | Rate | Tax |
|---|---|---|
| $0 – $18,200 | 0% | $0 |
| $18,201 – $45,000 | 15% | $4,020 |
| $45,001 – $135,000 | 30% | $16,500 |
| $135,001 – $190,000 | 37% | $0 |
| $190,001 – and over | 45% | $0 |
How the number is built
| Income tax on $100,000 at 2026–27 rates | $20,520 | |
| + | Medicare levy | $2,000 |
| = | Total tax | $22,520 |
| Taxable income | $100,000 | |
| − | Total tax | $22,520 |
| = | Take-home pay, a year | $77,480 |
General information only, not tax advice. It uses the ATO’s 2026–27 resident rates, the low income tax offset and the Medicare levy, with the latest published low-income levy thresholds. It does not include the Medicare levy surcharge, HELP repayments, other offsets or deductions you have not already taken off, salary sacrifice, or non-resident rates. Your employer’s withholding may differ slightly from your final tax. Our Credit Guide sets out who we are and how we are licensed.
How your tax is worked out
Australian income tax is marginal: your income is split into bands, and each band is taxed at its own rate. In 2026–27 the first $18,200 is tax-free, the next band to $45,000 is taxed at 15%, then 30% to $135,000, 37% to $190,000 and 45% above that. The 2% Medicare levy is added on top.
On $100,000, that adds up to $20,520 of income tax and $2,000 of Medicare levy — $22,520 in all, and $77,480 of take-home pay, or $2,980 a fortnight. The calculator shows the tax built up band by band, so you can see where each dollar of it comes from.
This year's tax cut
On 1 July 2026 the 15% rate replaced the 16% rate on income between $18,201 and $45,000. Because every taxpayer’s income passes through that band, everyone earning over $45,000 gets the same saving: $268 a year, or about $5.15 a week. The calculator shows what it is worth on your income.
Marginal rate and average rate
Your marginal rate is the tax on your next dollar; your average rate is your total tax as a share of your income, and it is always lower. On $100,000 the marginal rate is 32% with the Medicare levy, but the average is 22.5%. On $150,000 the marginal rate is 39% and the average 26.4%.
The marginal rate is the one that matters for decisions — what a pay rise is worth after tax, or what a deduction saves you. Crossing into a higher bracket only ever affects the dollars above the line: a pay rise from $135,000 to $135,001 still leaves you 61 cents better off.
The offsets and the levy
- Low income tax offset. Up to $700 off the tax of anyone earning $37,500 or less, tapering to nothing at $66,667. In 2026–27 it means no income tax is payable on incomes up to about $22,866.
- Medicare levy. 2% of taxable income, reduced or waived for low incomes. The calculator uses the latest published low-income thresholds.
- Medicare levy surcharge. An extra 1% to 1.5% for higher earners without private hospital cover. It is not in the calculator, and it is worth checking before you drop your cover.
Beyond the pay packet
Lenders size a home loan from take-home pay, not salary — our borrowing power calculator works from these same 2026–27 rates. And the marginal rate above is what an investment property’s loss or profit would be taxed at, which the negative gearing calculator works through. For deductions, salary sacrifice and the structure around them, that is the everyday work of our tax accountants.
Frequently asked questions
How much tax do I pay on $100,000?
In 2026–27, income tax on $100,000 is $20,520 and the Medicare levy is $2,000, a total of $22,520. That leaves take-home pay of $77,480 a year — $2,980 a fortnight, $1,490 a week or $6,456.67 a month. Your top rate is 30% plus the 2% levy, but your average rate is 22.5%.
What are the income tax rates for 2026–27?
For Australian residents: nothing on the first $18,200; 15 cents per dollar from $18,201 to $45,000; $4,020 plus 30 cents per dollar from $45,001 to $135,000; $31,020 plus 37 cents per dollar from $135,001 to $190,000; and $51,370 plus 45 cents per dollar above $190,000. The 2% Medicare levy is on top.
Can a pay rise leave me worse off by pushing me into a higher bracket?
No. A higher rate applies only to the dollars above the bracket's threshold, never to the income below it. Going from $135,000 to $135,001 means only that last dollar is taxed at 37% — your take-home pay still rises, by 61 cents. The bracket table in the calculator shows each band taxed separately.
How much is the 2026 tax cut worth?
The 16% rate on income between $18,201 and $45,000 fell to 15% on 1 July 2026. Anyone earning more than $45,000 pays $268 less tax a year than at 2025–26 rates — about $5.15 a week. People earning less save proportionally less.
What is the Medicare levy?
A 2% levy on taxable income that helps fund Medicare, collected with your income tax. People on low incomes pay a reduced levy or none. It is separate from the Medicare levy surcharge, an extra 1% to 1.5% for higher earners without private hospital cover, which this calculator does not include.
Is super included in my salary?
Usually not: employers pay the 12% super guarantee on top of your salary, and it is not part of your taxable income. If a job was advertised as a package including super, tick the box in the calculator — a $112,000 package is a $100,000 salary plus $12,000 of super.
Want us to run these numbers properly?
A calculator works with the handful of figures it asks for. A strategy session works with your income, your debts, your tax position and what you are actually trying to build. The first one is free.
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