Tax Calculator FY2026-27
Enter your taxable income to see your FY2026-27 base tax, Medicare levy, take-home pay and marginal rate — worked from the ATO's own resident tax brackets, including the tax cut that started 1 July 2026.
Calculate your income tax
Base tax: $16,020
Medicare levy: $1,700
Total tax: $17,720
Take-home pay: $67,280
Marginal tax rate: 30%
Effective (average) tax rate: 20.8%
This is general information, not personal advice — consider a registered tax agent or financial adviser for guidance specific to your situation.
Estimates for general information — not financial or tax advice. Method, rates and sources are published below.
How much tax at common incomes (FY2026-27)
From 1 July 2026 the second tax bracket dropped from 16% to 15%. Everyone earning $45,000 or more saves an extra $268 a year in base tax compared with FY2025-26 — see the last column below.
| Taxable income | Base tax | Medicare levy | Total tax | Take-home pay | Effective rate | FY2025-26 → FY2026-27 saving |
|---|---|---|---|---|---|---|
| $45,000 | $4,020 | $900 | $4,920 | $40,080 | 10.9% | $268 |
| $60,000 | $8,520 | $1,200 | $9,720 | $50,280 | 16.2% | $268 |
| $75,000 | $13,020 | $1,500 | $14,520 | $60,480 | 19.4% | $268 |
| $90,000 | $17,520 | $1,800 | $19,320 | $70,680 | 21.5% | $268 |
| $100,000 | $20,520 | $2,000 | $22,520 | $77,480 | 22.5% | $268 |
| $120,000 | $26,520 | $2,400 | $28,920 | $91,080 | 24.1% | $268 |
| $150,000 | $36,570 | $3,000 | $39,570 | $110,430 | 26.4% | $268 |
| $190,000 | $51,370 | $3,800 | $55,170 | $134,830 | 29% | $268 |
| $250,000 | $78,370 | $5,000 | $83,370 | $166,630 | 33.3% | $268 |
How this is calculated
Total tax is base tax plus the Medicare levy. Base tax uses the resident income tax brackets below: each bracket only taxes the slice of income that falls inside it — the first $18,200 is tax-free, the next slice is taxed at that bracket's rate, and so on up the table. The Medicare levy is a flat 2% of taxable income, added on top.
| Taxable income | Tax rate |
|---|---|
| $0 – $18,200 | 0% |
| $18,200 – $45,000 | 15% |
| $45,000 – $135,000 | 30% |
| $135,000 – $190,000 | 37% |
| $190,000 and over | 45% |
From 1 July 2026 the second bracket's rate dropped from 16% to 15%, under the Treasury Laws Amendment (More Cost of Living Relief) Act 2025 — the second of two legislated cuts (16% → 15% → 14% from FY2027-28). That's the only bracket change between FY2025-26 and FY2026-27; the thresholds themselves are unchanged.
One quirk of "marginal rate": at an exact bracket boundary (for example exactly $45,000) the marginal rate is the rate that applies to that dollar itself — the lower bracket's rate. Earn one dollar more and the next dollar is taxed at the next bracket's rate instead.
Sources
- ATO — new tax cuts for every Australian taxpayer (FY2026-27) — verified 2026-07-09
- ATO — tax rates for Australian residents (FY2025-26) — verified 2026-07-09
Assumptions used here follow the same general approach as ASIC's MoneySmart calculators and may not reflect every personal circumstance — see "What this doesn't model" for specifics.
What this doesn't model
- The Medicare levy low-income reduction and exemption, which reduces or removes the levy below certain income thresholds.
- The Medicare Levy Surcharge (MLS), an extra levy on higher-income earners without private hospital cover.
- Tax offsets, including the Low Income Tax Offset (LITO).
- HELP/HECS study loan repayments, which are calculated separately from income tax and the Medicare levy — see the HECS repayment calculator.
- Non-resident and working holiday maker tax rates — this calculator uses Australian resident rates only.
If any of these apply to you, your actual tax and take-home pay will differ from the figures above.
Frequently asked questions
How much tax will I pay on $85,000 in 2026-27?
On a taxable income of $85,000 in FY2026-27, base tax is $16,020 and the Medicare levy is $1,700, for total tax of $17,720 and take-home pay of $67,280. That's a marginal rate of 30% on the highest bracket reached, and an effective (average) rate of 20.8% across the whole income.
What changed on 1 July 2026?
The second-lowest tax bracket dropped from 16% to 15%, under the Treasury Laws Amendment (More Cost of Living Relief) Act 2025 — the second of two legislated cuts (a further cut to 14% is due from FY2027-28). Anyone earning $45,000 or more saves exactly $268 a year in base tax compared with FY2025-26; people earning less than that save a smaller amount, and no one below the $18,200 tax-free threshold pays any base tax in either year.
Does this include the Medicare levy?
Yes — the flat 2% Medicare levy is included in every total-tax and take-home figure on this page. It does not include the Medicare levy low-income reduction or exemption, or the separate Medicare Levy Surcharge — see "What this doesn't model" below.
What's the tax-free threshold?
$18,200 for both FY2026-27 and FY2025-26 — you pay no base income tax on the first $18,200 of taxable income. The Medicare levy is calculated separately and isn't reduced by this threshold on its own (see the Medicare levy low-income reduction note above for how that works instead).
Is this the same as what the ATO calculator shows?
It should be very close, but not identical. This calculator applies the resident income tax brackets and the flat 2% Medicare levy exactly as legislated, then rounds to whole dollars for display. It doesn't apply the Medicare levy low-income reduction or exemption, the Medicare Levy Surcharge, tax offsets like the Low Income Tax Offset (LITO), or HELP/HECS repayments — all of which the ATO's own calculators can factor in. Use the ATO's calculator for a figure that accounts for your full personal circumstances.