FREE INCOME TAX CALCULATOR · AUSTRALIA
Work out your tax—and what is left to plan.
Estimate Australian resident income tax and take-home pay for 2026–27 or 2025–26. See the brackets, low income tax offset and Medicare levy as separate, checkable parts.
- Weekly and fortnightly income
- Estimated LITO and Medicare levy
- Figures stay in your browser
AUSTRALIAN RESIDENT TAX ESTIMATE
See where the estimate comes from.
Enter income before tax. VULT annualises each pay rhythm, applies eligible deductions, resident tax brackets, an estimated LITO and the individual Medicare levy settings shown below.
Estimated total tax · 2026-27A$16,440Income tax after estimated LITO + selected Medicare levy
After taxIncome taxMedicare levy
INCOME AFTER ESTIMATED TAXA$2,521.54
per fortnight
MARGINAL INCOME TAX RATE30%
Applies only to the next dollar in the same bracket. The estimated effective rate here is 20.3% of taxable income, including the selected Medicare levy.
HOW THE INCOME TAX BUILDS2026-27 resident rates
A$0 – A$18,2000c per A$1 in this bandA$0
A$18,201 – A$45,00015c per A$1 in this bandA$4,020
A$45,001 – A$135,00030c per A$1 in this bandA$10,800
HOW TO USE IT
Start with income before tax, then keep the assumptions honest.
Use employment income after salary sacrifice but before income tax, and match the frequency to the figure entered. Add other taxable income separately. Only enter deductions you reasonably expect to be eligible to claim, as the ATO—not the calculator—decides eligibility.
- 01Choose the financial year
Use 2026–27 for income earned from 1 July 2026. Use 2025–26 when reviewing the year that ended 30 June 2026.
- 02Match each income rhythm
A fortnightly figure is multiplied by 26; a weekly figure by 52; a monthly figure by 12.
- 03Check the deductions used
For 2026–27, VULT can use the enacted A$1,000 standard work deduction when it is larger than actual work expenses. Other deductions stay separate.
- 04Read the breakdown, not only the total
Income tax, LITO and Medicare use different rules. Each line shows what is included in this estimate.
2026–27 TAX RATES
Australia uses marginal tax brackets.
Moving into a higher bracket does not make every dollar of income use the higher rate. Only the part inside that bracket uses that rate. For 2026–27, the first taxable band above A$18,200 falls from 16% to 15%; the higher bands remain 30%, 37% and 45%.
EXAMPLE AT A$81,000 TAXABLE INCOME · 2026–27A$0 + A$4,020 + A$10,800 = A$14,820 income tax before offsets
From A$82,000 of employment income, the A$1,000 standard deduction leaves A$81,000 taxable. The first A$18,200 is tax-free, the next A$26,800 is taxed at 15%, and the remaining A$36,000 is taxed at 30%.
The marginal rate describes the next dollar earned while you remain in the same band. It is not the percentage taken from the whole income. The effective rate in the calculator divides the total estimated income tax and selected Medicare levy by taxable income.
LOW INCOME TAX OFFSET
LITO can reduce tax, but it is not a separate refund.
The ATO says the low income tax offset is worth up to A$700. It reduces by 5 cents for each dollar above A$37,500 until A$45,000, then by 1.5 cents for each dollar above A$45,000 until it reaches zero at A$66,667.
LITO is non-refundable: it can reduce income tax to zero, but unused offset is not paid out as cash. VULT shows the amount applied rather than presenting the maximum entitlement as money received.
MEDICARE LEVY
The standard levy and the surcharge are different.
Most Australian taxpayers pay a 2% Medicare levy. For 2025–26 and later years, the enacted low-income threshold for a single taxpayer not entitled to SAPTO is A$28,011. A reduced levy phases in at 10% of income above that threshold until the full 2% applies from A$35,013.
Included
Single, non-SAPTO low-income settings and the standard 2% rate.
Not included
A spouse, dependants and family taxable income can change the result.
Not included
MLS uses different income tests, cover rules and rates from 1% to 1.5%.
TAKE-HOME PAY
Annual tax and payslip withholding answer different questions.
This calculator spreads estimated annual income after tax evenly across the selected pay rhythm. Your actual payslip can differ because PAYG withholding uses payroll schedules, declarations, pay-period rounding, bonuses, allowances, HELP settings and whether you claim the tax-free threshold.
It also cannot estimate a tax refund without the tax already withheld. For an official withholding estimate, use the ATO tax withheld calculator. For a tax return outcome, use ATO myTax or a registered tax agent with your complete records.
DEDUCTIONS
A deduction is not the same as getting the expense back.
From 2026–27, eligible Australian resident workers can use an enacted standard deduction of up to A$1,000 for work-related expenses without itemising smaller work claims. If actual work-related deductions exceed A$1,000, the actual amount can be used instead. Eligible non-work deductions may sit alongside it, which is why VULT keeps them in a separate field.
If an eligible A$100 expense reduces income that would otherwise be taxed at 30%, the income-tax effect may be about A$30—not A$100—before considering offsets and Medicare. Eligibility, private-use apportionment and records matter. Do not spend money only to create a deduction.
The calculator subtracts the annual deductions entered from gross taxable income. It does not test the type of expense, apply deduction caps or calculate depreciation, capital gains, business schedules or rental-property rules.
COMMON QUESTIONS
Australian income tax calculator questions, answered plainly.
What tax rates does this calculator use?
For Australian residents, it uses the legislated 2026–27 brackets by default: no tax up to A$18,200, then 15%, 30%, 37% and 45% marginal bands. You can switch to 2025–26, when the first taxable band uses 16%. The Medicare levy is calculated separately.
Does this calculator include the low income tax offset?
Yes. It estimates the non-refundable low income tax offset, or LITO, using the ATO thresholds. The maximum is A$700, it begins reducing above A$37,500 and reaches zero at A$66,667. Because it is non-refundable, the applied amount cannot reduce income tax below zero.
Does it include the new A$1,000 standard deduction?
Yes, for 2026–27 employment income when the option is on. VULT uses the larger of A$1,000 or the actual work-related deductions entered, so it does not count both. Separate eligible non-work deductions can be entered in their own field. Turn the option off if it does not fit your circumstances.
Does it include the Medicare levy?
It can estimate the standard levy for a single taxpayer who is not entitled to SAPTO. The enacted low-income threshold is A$28,011 and the reduced levy phases in before the full 2% applies from A$35,013. Family thresholds, dependants and full or partial exemptions are not modelled.
Does it include the Medicare levy surcharge?
No. The Medicare levy surcharge is separate from the standard Medicare levy and depends on income for surcharge purposes, family status and appropriate private hospital cover. Use ATO guidance for that calculation.
Can this estimate my tax refund?
No. A refund or bill depends on tax already withheld, deductions accepted by the ATO, offsets, levies and other circumstances. This tool estimates tax from the figures entered; it does not know the PAYG amount already paid.
Are HELP or HECS repayments included?
No. Compulsory study and training loan repayments use repayment income, which can differ from taxable income and changed from 2025–26. Check the ATO estimator for an official repayment calculation.
Why is my employer withholding different?
PAYG withholding uses payroll schedules, declarations, pay-period rounding, tax-free threshold choices, study-loan settings and sometimes allowances or bonuses. This annual planning estimate is not a payslip withholding calculator.
Do deductions come back dollar-for-dollar?
No. An eligible deduction reduces taxable income. The tax effect depends on the marginal rates and offsets that apply. The ATO decides whether an expense is deductible and what records are required.
Official Australian tax sources
Rates and thresholds were checked on 22 August 2026. Tax law and ATO guidance can change, so use the official sources for a final decision.
FROM ESTIMATE TO PLAN