Australia ATO Income Tax & PAYG Calculator
Calculate your exact net take-home pay for 2026/27 under ATO brackets. Includes Medicare Levy, LITO offsets, and HECS/HELP student loan repayments.
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Calculation Methodology & Statutory Rules
Australian income tax is calculated using progressive ATO brackets for 2026/27: 0% up to $18,200 (tax-free threshold); 19% from $18,201–$45,000; 32.5% from $45,001–$135,000; 37% from $135,001–$190,000; 45% above $190,000.
The Low Income Tax Offset (LITO) reduces tax by up to $700 for incomes below $37,500, phasing out above that.
The Medicare Levy is 2% of taxable income (with a low-income reduction below ~$26,000).
The Medicare Levy Surcharge adds 1%–1.5% if you earn above $93,000 and don't hold private hospital cover.
HECS/HELP compulsory repayments start at 1% when income exceeds $54,435, scaling up to 10% above $141,848.
This reduces your take-home but also reduces your outstanding debt.
Frequently Asked Questions
Q1.What are the Australian income tax rates for 2026/27?
For Australian tax residents in 2026/27: 0% on income up to $18,200 (tax-free threshold); 19 cents for each $1 between $18,201 and $45,000; 32.5 cents per $1 between $45,001 and $135,000; 37 cents per $1 between $135,001 and $190,000; and 45 cents per $1 above $190,000. These rates exclude the 2% Medicare Levy.
Q2.When does the Medicare Levy Surcharge apply?
The Medicare Levy Surcharge (MLS) applies if your income exceeds $93,000 (singles) and you don't have an appropriate level of private hospital cover. The surcharge rate is 1% for $93,001–$108,000, 1.25% for $108,001–$144,000, and 1.5% above $144,000. Getting private hospital cover is often cheaper than paying the surcharge.
Q3.How are HECS/HELP repayments calculated in 2026/27?
Compulsory HECS/HELP repayments begin when your repayment income reaches $54,435. The rate starts at 1% and increases with income, reaching 10% above $141,848. Repayments are automatically withheld by your employer if you notify them. They reduce your HELP debt but are not tax deductible.
Q4.What is the Low Income Tax Offset (LITO)?
The LITO reduces the amount of tax you pay if you're an Australian resident earning below $66,667. The maximum offset is $700 for incomes up to $37,500. It reduces by 5 cents for each dollar between $37,500 and $45,000, then by 1.5 cents per dollar from $45,000 to $66,667. Above $66,667, no offset applies.
Q5.How much superannuation should my employer be paying?
From 1 July 2025, the Superannuation Guarantee (SG) rate is 12% of your ordinary time earnings. Your employer must pay this on top of your salary into your nominated super fund. This is in addition to your gross salary shown above and is not included in take-home pay calculations.
Disclaimer: Results are estimates based on standard tax rules for the 2026 tax year and are provided for informational purposes only. Individual circumstances (deductions, credits, specific state/local rules) may significantly affect your actual tax liability. Always consult a qualified tax professional or accountant for advice specific to your situation.