Question 1

What are the Australian tax brackets for 2024–25?

Accepted Answer

For Australian residents, the 2024–25 tax brackets (Stage 3 rates from 1 July 2024) are: 0% on income up to $18,200, 16% from $18,201 to $45,000, 30% from $45,001 to $135,000, 37% from $135,001 to $190,000, and 45% on income above $190,000. These rates do not include the 2% Medicare levy.

Question 2

How is the Medicare levy calculated?

Accepted Answer

The Medicare levy is 2% of your taxable income for Australian residents. Foreign residents and working holiday makers do not pay the Medicare levy. Low-income earners may be eligible for a reduction or exemption, which this calculator does not account for.

Question 3

What is the HELP/HECS repayment threshold?

Accepted Answer

For 2024–25, compulsory HELP repayments begin when your repayment income exceeds $54,435. The repayment rate starts at 1% and increases progressively up to 10% for incomes above $159,663. The repayment is calculated on your entire income, not just the amount above the threshold.

Question 4

Is superannuation deducted from my salary?

Accepted Answer

No. The Superannuation Guarantee (currently 12%) is paid by your employer on top of your gross salary. It is not deducted from your take-home pay. Some employees salary sacrifice additional amounts into super, which would reduce taxable income but is not modelled here.

Question 5

What is the difference between marginal and effective tax rate?

Accepted Answer

Your marginal tax rate is the rate applied to your highest dollar of income (e.g., 30% for someone earning $85,000). Your effective tax rate is the total tax paid divided by your total income, which is always lower because the first $18,200 is tax-free and lower brackets are taxed at lower rates.

Question 6

Do foreign residents pay the same tax rates?

Accepted Answer

No. Foreign residents do not receive the $18,200 tax-free threshold and are taxed from the first dollar at 30% (up to $135,000). They also do not pay the Medicare levy. Working holiday makers (subclass 417/462 visa holders) pay a flat 15% on the first $45,000 and standard rates above that.

Income Tax Calculator Australia (2026)

Input Values

Income

Tax Options

Salary Breakdown

Frequently asked questions

What are the Australian tax brackets for 2024–25?

How is the Medicare levy calculated?

What is the HELP/HECS repayment threshold?

Is superannuation deducted from my salary?

What is the difference between marginal and effective tax rate?

Do foreign residents pay the same tax rates?

Keep exploring

Calculators

Deposit Savings Calculator

Inflation Calculator

Simple Interest Calculator

Guides

Compound Interest vs Simple Interest: Which is Better?

How to Compare Home Loans in Australia (2026)