AussieCalc

Income Tax Calculator

Estimate your Australian take-home pay, income tax, Medicare levy, and HECS repayment for FY2025–26.

$

Your gross salary before tax, Medicare, and any deductions.

Determines your tax brackets and Medicare levy eligibility.

How often you receive your pay. Affects how your per-period take-home is displayed.

Applies to Australian residents above the minimum income threshold.

$

Annual amount sacrificed to super before tax. Reduces your taxable income and saves tax at your marginal rate minus 15%.

Estimates based on FY2025–26 Australian tax rates. Includes LITO. Employer SGC at 12%. Excludes private health rebates and other offsets. General guidance only — not tax advice.

Where does your income go?

$80,000 salary breakdown — hover to see percentages

Take-home pay
$61,933
Income tax
$16,467
Medicare levy
$1,600

Effective tax rate: 22.6%. Marginal rate: 32.5%.

Income allocation across salary levels

How take-home pay, tax, and Medicare scale with income — hover to inspect

Take-home payIncome taxMedicare levy

The tax-free threshold ($18,200) and tax brackets ($45k, $120k, $180k) create visible kinks in the curves. The Low Income Tax Offset (LITO) reduces tax for incomes below $67k.

Effective tax rate by income

How your effective rate climbs as income rises — hover to inspect

Effective tax rate

Your current effective rate is 22.6% at $80,000. This is always lower than your marginal rate of 32.5% because the lower tax brackets apply to the first portion of your income.

Australian income tax

How Australian income tax works

Australia uses a progressive tax system with a tax-free threshold of $18,200. You only pay tax on income above this amount, and each additional dollar is taxed at the rate for its bracket — not your entire income. In FY2025–26, the brackets are 0% (up to $18,200), 19% ($18,201–$45,000), 32.5% ($45,001–$120,000), 37% ($120,001–$180,000), and 45% above $180,000. The Low Income Tax Offset (LITO) reduces tax by up to $700 for incomes below $37,500, with a gradual phase-out up to $66,667.

Marginal rate vs effective tax rate

Your marginal tax rate is the rate you pay on the last dollar you earn. On a $90,000 salary, your marginal rate is 32.5% — but you don't pay 32.5% on all $90,000. You pay 0% on the first $18,200, 19% on the next $26,800, and 32.5% on the remaining $45,000. Your effective tax rate is the total tax divided by total income — typically much lower than your marginal rate. On $90,000, the effective rate is approximately 21%. Understanding this gap is key to making sense of your payslip.

What is salary sacrifice?

Salary sacrifice lets you redirect pre-tax income into your superannuation fund. Because super contributions are taxed at just 15% (the concessional rate), rather than your marginal rate, you save the difference. If you're in the 32.5% bracket, each dollar sacrificed saves 17.5 cents in tax (32.5% − 15%). On $10,000 of sacrifice, that's $1,750 in tax savings — plus the money still goes to work for you in super. The concessional contribution cap for FY2025–26 is $30,000 including employer super.

How HECS/HELP repayments work

Compulsory HECS/HELP repayments are calculated as a percentage of your total income — not just the amount above the threshold. In FY2025–26, repayments start at 1% above $54,435 and rise progressively to 10% above $157,569. Unlike income tax, HECS repayments apply to your entire repayment income once you cross a threshold, not just the excess. Your employer withholds the estimated amount throughout the year and it is reconciled when you lodge your tax return.

What is the Medicare levy?

The Medicare levy is 2% of your taxable income and funds Australia's public health system. Most Australian residents pay the full 2%. A shade-in applies for low-income earners: no levy below $26,000, with a gradual increase between $26,000 and $32,500. If you have private hospital cover, you may be exempt from the 1.5% Medicare Levy Surcharge — but the base 2% levy still applies. Foreign residents do not pay the Medicare levy.

Superannuation and take-home pay

Your employer is required to contribute 12% of your ordinary time earnings to super in FY2025–26 (the Superannuation Guarantee, or SGC). This is paid on top of your salary — it doesn't come out of your take-home pay. Additional voluntary contributions (salary sacrifice) do reduce cash take-home but reduce your tax and boost retirement savings simultaneously. Super contributions are taxed at 15% within the fund, making super one of the most tax-effective vehicles available to Australian employees.

Frequently asked questions

What tax bracket am I in as an Australian resident in FY2025–26?
Australia has five tax brackets in FY2025–26: 0% on the first $18,200; 19% on $18,201–$45,000; 32.5% on $45,001–$120,000; 37% on $120,001–$180,000; and 45% above $180,000. Your "tax bracket" refers to your marginal rate — the rate on the last dollar you earn. Most Australians earning $45,001–$120,000 are in the 32.5% bracket. The tax-free threshold and Low Income Tax Offset (LITO) further reduce tax for lower earners.
Does salary sacrifice actually save me money?
Yes, if you're in the 32.5% tax bracket or above. Every dollar sacrificed to super is taxed at 15% (concessional rate) instead of your marginal rate. At 32.5%, sacrificing $10,000 saves $1,750 in income tax and $200 in Medicare levy. The money still works for you in super. The trade-off is reduced cash take-home and reduced access to the funds until retirement (preservation age, typically 60). Ensure you stay within the $30,000 concessional cap (including your employer's 12% SGC contributions).
How much HECS do I pay if I earn $70,000?
At $70,000 taxable income in FY2025–26, the HECS repayment rate is 2.5% applied to your entire income — not just the amount above the threshold. This means a compulsory repayment of approximately $1,750 per year ($70,000 × 2.5%), or around $146/month. Your employer withholds this amount and it is credited when you lodge your tax return. Note that HECS repayments do not reduce your taxable income.
Is the Medicare levy the same as Medicare Levy Surcharge?
No. The Medicare levy (2% of income) is paid by most Australian residents and funds the public health system. The Medicare Levy Surcharge (MLS) is an additional 1%–1.5% tax that applies only to higher-income earners ($93,000+ for singles, $186,000+ for families) who don't hold private hospital cover. The MLS is designed to encourage private health insurance uptake. This calculator shows the base 2% Medicare levy only — not the surcharge.
Why is my effective tax rate lower than my marginal rate?
Because Australia's progressive tax system only applies each rate to the income within that bracket — not to your entire income. If you earn $80,000, you pay 0% on the first $18,200, 19% on the next $26,800, and 32.5% on the remaining $35,000. The total tax is around $17,547 (before LITO), which is an effective rate of about 22% — not 32.5%. The effective rate is what you actually pay as a proportion of total income, and it's always lower than the marginal rate.
Does my HECS debt reduce my taxable income?
No. HECS/HELP compulsory repayments are not tax-deductible and don't reduce your taxable income. They are calculated separately on your repayment income (broadly equal to taxable income) and reconciled at tax time. Voluntary HECS repayments are also not tax-deductible. This differs from salary sacrifice super contributions, which do reduce your taxable income because they are made before tax.

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