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AU Income Tax
Updated for FY 2026–27Rates sourced from the ATO100% free, no signupNo income data stored

Methodology

How we calculate Australian income tax, Medicare levy, HECS/HELP, and superannuation for 2026-27.

All rates, thresholds, and offsets below are sourced from the ATO and Australian Treasury as legislated for the 2026-27 financial year (1 July 2026 – 30 June 2027). Estimated figures are clearly marked.

Primary sources

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Non-resident income tax rates: ATO — Tax rates for foreign residents
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Low Income Tax Offset (LITO): ATO — Low Income Tax Offset
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Medicare Levy: ATO — Medicare Levy
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Medicare Levy Surcharge: ATO — Medicare Levy Surcharge
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Superannuation Guarantee rate: ATO — How much super to pay
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Stage 3 tax cuts (2026-27 15% bracket): Treasury — Personal income tax cuts

Calculation steps

Step 1 — Taxable income

Taxable income = Gross salary − Work deductions − Salary sacrifice

Salary sacrifice reduces both taxable income and the gross salary base from which super is calculated (salary sacrifice contributions go into super separately).

Step 2 — Income tax (before offsets)

Australian residents (2026-27):

$0 – $18,200: Nil
$18,201 – $45,000: 15% × (income − $18,200)
$45,001 – $135,000: $4,020 + 30% × (income − $45,000)
$135,001 – $190,000: $31,020 + 37% × (income − $135,000)
$190,001+: $51,370 + 45% × (income − $190,000)

Non-residents (2026-27):

$0 – $135,000: 30% (no tax-free threshold)
$135,001 – $190,000: $40,500 + 37% × (income − $135,000)
$190,001+: $60,850 + 45% × (income − $190,000)

Working holiday makers (visa 417 & 462):

$0 – $45,000: 15% (flat, no tax-free threshold)
$45,001 – $135,000: $6,750 + 30% × (income − $45,000)
$135,001 – $190,000: $33,750 + 37% × (income − $135,000)
$190,001+: $54,100 + 45% × (income − $190,000)

Step 3 — Low Income Tax Offset (LITO)

Applies to Australian residents only. Not available to non-residents or working holiday makers.

≤ $37,500: LITO = $700
$37,501 – $45,000: LITO = $700 − (income − $37,500) × 5%
$45,001 – $66,667: LITO = $325 − (income − $45,000) × 1.5%
> $66,667: LITO = Nil

Net income tax = max(0, income tax − LITO)

Step 4 — Medicare Levy

Applies to Australian residents only. Working holiday makers and non-residents do not pay the Medicare Levy.

≤ $28,011: Nil
$28,012 – $35,014: (income − $28,011) × 10% (shade-in)
> $35,014: income × 2%

Shade-in thresholds are 2026-27 estimates. The Medicare Levy Surcharge (1–1.5%) applies separately to residents earning above $105,000 without private hospital cover.

Step 5 — HECS/HELP repayment

HECS/HELP repayment is calculated as a percentage of your total repayment income (not marginal). The applicable rate is determined by which threshold band your income falls into. The repayment amount is:

HECS repayment = repayment income × applicable rate

⚠ The 2026-27 HECS repayment thresholds are estimates indexed from 2024-25 ATO published figures by CPI. We will update these when the ATO confirms final 2026-27 figures.

Step 6 — Employer superannuation

The Superannuation Guarantee rate is 12% from 1 July 2025, applying to ordinary time earnings.

Employer super = gross salary × 12%

Salary sacrifice amounts are shown as additional super contributions (not included in the employer super calculation, but shown in total super).

Step 7 — Take-home pay

Take-home pay = Gross salary − Net income tax − Medicare Levy − MLS − HECS repayment − Salary sacrifice

Super is paid on top of salary and is not deducted from take-home pay.

What changed for 2026-27

The most significant change for 2026-27 is the Stage 3 tax cuts, which came into effect from 1 July 2026:

  • The 19% resident rate on income $18,201–$45,000 was reduced to 15%.
  • Working holiday makers also benefit: the upper bracket above $45,000 was reduced from 32.5% to 30%.
  • The Superannuation Guarantee reached 12% (up from 11.5% in 2024-25).
Methodology last reviewed: July 2026