Question 1

What are the Australian tax brackets for 2025–26 and 2026–27?

Accepted Answer

For Australian residents, both years keep the $18,200 tax-free threshold, $45,000, $135,000 and $190,000 bracket cut-offs. The 2025–26 rate from $18,201 to $45,000 is 16%. From 1 July 2026, that rate reduces to 15% for 2026–27. These rates do not include the Medicare levy.

Question 2

How is the Medicare levy calculated?

Accepted Answer

For a single Australian resident, the Medicare levy is nil at or below the low-income threshold, phases in above that threshold, and is generally 2% once taxable income reaches the full phase-in limit. This calculator models the single/no-dependants threshold only. Family, dependant, SAPTO and exemption rules are not modelled.

Question 3

What is the HELP/HECS repayment threshold?

Accepted Answer

For 2025–26, compulsory HELP repayments begin when repayment income exceeds $67,000. For 2026–27, Study Assist lists the minimum repayment income as $69,528. Both years use marginal repayment bands, capped by a 10% total-income repayment at higher incomes. This calculator uses the salary you enter as the repayment-income proxy.

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)

Inputs

Income

Tax Options

Salary Breakdown

Important assumptions

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Frequently asked questions

What are the Australian tax brackets for 2025–26 and 2026–27?

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?

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