---
title: "Australia income tax calculator: tax and Medicare levy | AumnI tools"
description: "Work out Australian resident income tax, the Medicare levy and any surcharge on a salary, with the tax in each band and what you take home."
url: https://aumnitools.com/au/tool/tax-calculator
category: "Financial"
country: "Australia"
updated: 2026-11-08
---

# Tax Calculator

In Australia, residents pay no income tax on the first $18,200 and the Medicare levy of 2% is added on top. This version applies the 2026-27 ATO rates, takes off the low income tax offset where it applies, and asks whether you held private hospital cover, because going without it can add the Medicare levy surcharge once income passes $105,000.

## Australia rules and figures

- For 2026-27 the resident tax-free threshold is $18,200, then 15% to $45,000, 30% to $135,000, 37% to $190,000 and 45% on income above $190,000.
- The low income tax offset is worth up to $700 and fades out completely at about $66,667 of taxable income.
- The Medicare levy is 2% of taxable income. Singles earn a reduction below $35,013 under the latest thresholds the ATO publishes, those for 2025-26.
- For singles in 2026-27, the Medicare levy surcharge is 1% from $105,001, 1.25% from $123,001 and 1.5% from $164,001 if you had no appropriate private hospital cover.
- The Australian tax year runs from 1 July 2026 to 30 June 2027.

Sources: [ATO: Tax rates, Australian residents](https://www.ato.gov.au/tax-rates-and-codes/tax-rates-australian-residents) (checked 2026-11-08); [ATO: Low income tax offset](https://www.ato.gov.au/individuals-and-families/income-deductions-offsets-and-records/tax-offsets/low-income-tax-offset) (checked 2026-11-08); [ATO: Medicare levy reduction for low-income earners](https://www.ato.gov.au/individuals-and-families/medicare-and-private-health-insurance/medicare-levy/medicare-levy-reduction/medicare-levy-reduction-for-low-income-earners) (checked 2026-11-08); [ATO: Medicare levy surcharge income, thresholds and rates](https://www.ato.gov.au/individuals-and-families/medicare-and-private-health-insurance/medicare-levy-surcharge/medicare-levy-surcharge-income-thresholds-and-rates) (checked 2026-11-08)

## How the tax calculator works

Income up to $18,200 is tax-free and each slice above it is taxed at 15%, 30%, 37% or 45%. The low income tax offset then lowers the bill, never below zero. The Medicare levy is 2% of taxable income, and the surcharge is added only when the hospital cover box is cleared and income is above $105,000.

Formula: `income tax = Σ (income in band × rate) − low income tax offset; Medicare levy = 2% × income; surcharge = 1%, 1.25% or 1.5% × income when uncovered above $105,000`

- The second rate is 15% from $18,201 to $45,000 for 2026-27, after the legislated cut from 16%. The 30% rate then runs to $135,000.
- The offset is $700 up to $37,500, shrinks by 5 cents per dollar to $325 at $45,000, then by 1.5 cents per dollar until it reaches nil near $66,667.
- The Medicare levy is nil up to $28,011 and phases in at 10 cents per dollar to $35,013. Those are the 2025-26 thresholds, because no 2026-27 amounts were found on the ATO site.
- Gross income is treated as taxable income. At $90,000 the marginal rate is 32%, which is the 30% band plus the 2% levy.

## How to use the tax calculator

1. **Type your yearly income.** Enter your income for the 2026-27 year in dollars, before tax. No deductions are taken off it.
2. **Say whether you had hospital cover.** Leave the private hospital cover option ticked if you held appropriate cover all year. Untick it to see the Medicare levy surcharge for your income.
3. **Read the result.** The tiles give income tax, Medicare levy, take-home pay and your effective and marginal rates. The Band by band view shows how much income landed in each rate.
4. **Check where figures come from.** Official sources lists the ATO pages and the date each was checked. Copy summary puts the result on your clipboard.

## Example: $120,000 with and without private hospital cover

On $120,000, income tax is $26,520, which is 15% of $26,800 plus 30% of $75,000. The offset has run out by this income. The Medicare levy adds $2,400, so with cover $28,920 is taken off, an effective rate of 24.1%, leaving $91,080. Without cover the 1% surcharge adds $1,200, the total becomes $30,120 and take-home falls to $89,880, with a marginal rate of 33% instead of 32%.

## When to use the tax calculator

- **Weighing a salary offer.** Enter the package figure to see yearly take-home after income tax and the Medicare levy.
- **Deciding on hospital cover.** Switch the cover option off at an income above $105,000 and compare the surcharge with what a policy would cost you.
- **Seeing where the 30% rate starts.** Try $44,000 and then $46,000 to watch income begin to be taxed at 30%, and the offset begin to fade.
- **Testing a pay rise.** Raise the income and read the marginal rate to see what share of the extra dollar is left after tax and the levy.

## What the tax calculator does not do

- It covers Australian residents for tax purposes who are single. Working holiday makers and non-residents use other rates, and family levy thresholds are not applied.
- Gross income is treated as taxable income, so work deductions, fringe benefits, investment losses and other offsets are not modelled.
- The Medicare levy uses the 2025-26 low-income thresholds, so the levy for incomes near $30,000 may be slightly high.
- Capital gains, Division 293 tax and the senior and pensioner tax offset are not included.
- Results are estimates for the 2026-27 year and do not replace the ATO's own calculators or your tax return.

## When something else is a better fit

- **When you want per-fortnight pay with super and a study loan**, use the [Payroll Calculator](https://aumnitools.com/tool/payroll-calculator.md).
- **When you need your actual assessment, with deductions and offsets**, use myTax in ATO online services, or a registered tax agent.

## Questions about the tax calculator

### How much tax do I pay on $90,000 in Australia?

For a resident in 2026-27, income tax is $17,520 and the Medicare levy is $1,800. Together that is $19,320, an effective rate of 21.5%, which leaves $70,680 before super and any deductions.

### When does the Medicare levy surcharge apply?

Only if you had no appropriate private hospital cover and your income is over $105,000 as a single person. The rate is 1%, 1.25% or 1.5% of income depending on the tier, on top of the 2% levy.

### Why is the second tax rate 15% and not 16%?

The rate on income from $18,201 to $45,000 falls from 16% to 15% from 1 July 2026, so the 2026-27 figures use 15%.

### Does the result include superannuation?

No. Employer super is paid on top of your pay and is not part of take-home. The Payroll Calculator shows the 12% guarantee as an employer cost.

### Which year are the numbers for?

The 2026-27 year, 1 July 2026 to 30 June 2027, with each ATO page used shown under the results next to its checked date.

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- [Budget Planner](https://aumnitools.com/tool/budget-planner.md): Plans monthly income and expenses by category, with a health score and debt payoff
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## About this page

Runs in your browser: what you enter is processed on this device and is not uploaded. Estimates for planning only, not financial, tax or legal advice. Check figures that matter with a qualified professional. Last checked against the tool's code on 2026-11-08. Interactive version: https://aumnitools.com/au/tool/tax-calculator