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 the 12% super figure an employer entitlement calculation?

Accepted Answer

No. It is a simple illustration based on the salary entered. Actual super obligations can depend on ordinary time earnings, the employment agreement, whether a package is inclusive of super and the maximum contribution base. Check payslips, the employment agreement and current ATO guidance.

Question 5

Does the estimate include the Medicare levy surcharge?

Accepted Answer

No. The Medicare levy surcharge is separate from the Medicare levy and can depend on income, family status and eligible private hospital cover. This calculator does not ask for those inputs.

Question 6

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 7

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 the 12% super figure an employer entitlement calculation?

Does the estimate include the Medicare levy surcharge?

What is the difference between marginal and effective tax rate?

Do foreign residents pay the same tax rates?

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