Tax Calculator FY2026-27

Enter your taxable income to see your FY2026-27 tax, Medicare levy, Low Income Tax Offset and take-home pay — per year, month, fortnight or week — worked from the ATO's own resident tax brackets, including the tax cut that started 1 July 2026 and (optionally) your HELP/HECS repayment.

Calculate your income tax

Base tax: $16,020

Medicare levy: $1,700

Total tax: $17,720

Take-home pay: $67,280

Your saving from the 1 July 2026 tax cut: $268 a year versus FY2025-26.

Marginal tax rate: 30%

Effective (average) tax rate: 20.8%

This is general information, not personal advice — consider a registered tax agent or financial adviser for guidance specific to your situation.

How much tax at common incomes (FY2026-27)

From 1 July 2026 the second tax bracket dropped from 16% to 15%. Everyone earning $45,000 or more saves an extra $268 a year compared with FY2025-26 — see the last column below. Totals include the Low Income Tax Offset and the single-person Medicare levy reduction where they apply.

Taxable income	Base tax	LITO	Medicare levy	Total tax	Take-home pay	Effective rate	FY2025-26 → FY2026-27 saving
$45,000	$4,020	−$325	$900	$4,595	$40,405	10.2%	$268
$60,000	$8,520	−$100	$1,200	$9,620	$50,380	16%	$268
$75,000	$13,020	—	$1,500	$14,520	$60,480	19.4%	$268
$90,000	$17,520	—	$1,800	$19,320	$70,680	21.5%	$268
$100,000	$20,520	—	$2,000	$22,520	$77,480	22.5%	$268
$120,000	$26,520	—	$2,400	$28,920	$91,080	24.1%	$268
$150,000	$36,570	—	$3,000	$39,570	$110,430	26.4%	$268
$190,000	$51,370	—	$3,800	$55,170	$134,830	29%	$268
$250,000	$78,370	—	$5,000	$83,370	$166,630	33.3%	$268

How this is calculated

Total tax is base tax, minus the Low Income Tax Offset, plus the Medicare levy. Base tax uses the resident income tax brackets below: each bracket only taxes the slice of income that falls inside it — the first $18,200 is tax-free, the next slice is taxed at that bracket's rate, and so on up the table.

Taxable income	Tax rate
$0 – $18,200	0%
$18,200 – $45,000	15%
$45,000 – $135,000	30%
$135,000 – $190,000	37%
$190,000 and over	45%

The Low Income Tax Offset (ITAA 1997 Subdiv 61-D, unchanged since 2020-21) is $700 up to $37,500 taxable income, tapering by 5c per $1 up to $45,000 (leaving $325), then by 1.5c per $1 until it reaches nil at $66,667. It's non-refundable — it can cut base tax to zero but never below, and it doesn't reduce the Medicare levy. The tapers also mean each extra dollar in the taper bands effectively carries the bracket rate PLUS the taper rate; the marginal rate shown is the bracket rate.

The Medicare levy is 2% of taxable income, with the single-person low-income reduction: no levy at or below $27,222, then capped at 10c per $1 of the excess until the flat rate catches up (from about $34,028). That threshold is the currently legislated one (set for 2024-25 "and later years"); Medicare thresholds are re-legislated retrospectively most years, and the May 2026 Budget announced a further small uplift that isn't law yet — this page tracks the enacted figure, not announcements.

From 1 July 2026 the second bracket's rate dropped from 16% to 15%, under the Treasury Laws Amendment (More Cost of Living Relief) Act 2025 — the second of two legislated cuts (16% → 15% → 14% from FY2027-28). That's the only bracket change between FY2025-26 and FY2026-27; the thresholds themselves are unchanged.

One quirk of "marginal rate": at an exact bracket boundary (for example exactly $45,000) the marginal rate is the rate that applies to that dollar itself — the lower bracket's rate. Earn one dollar more and the next dollar is taxed at the next bracket's rate instead.

Sources

ATO — new tax cuts for every Australian taxpayer (FY2026-27) — verified 2026-07-09
ATO — tax rates for Australian residents (FY2025-26) — verified 2026-07-09
ATO — Low Income Tax Offset (ITAA 1997 Subdiv 61-D; $700 max, bands unchanged since 2020-21) — verified 2026-07-14
Treasury Laws Amendment (More Cost of Living Relief) Act 2025 — Sch 2, Medicare levy low-income thresholds (2024-25 and later) — verified 2026-07-14
ATO — Study and training loan repayment thresholds and rates (FY2026-27, used by the HELP/HECS option) — verified 2026-07-10

Assumptions used here follow the same general approach as ASIC's MoneySmart calculators and may not reflect every personal circumstance — see "What this doesn't model" for specifics.

What this doesn't model

Family and seniors/pensioners (SAPTO) Medicare levy thresholds, and Medicare levy exemption categories — the low-income reduction modelled here is the single-person threshold only.
The Medicare Levy Surcharge (MLS), an extra levy on higher-income earners without private hospital cover.
Tax offsets other than LITO — e.g. the seniors and pensioners tax offset (SAPTO), or the private health insurance rebate.
The full HELP/HECS repayment-income definition when the checkbox is on: repayment income adds reportable fringe benefits, net investment losses, reportable super contributions and exempt foreign employment income to taxable income — if any apply, your real repayment is higher than shown (see the HECS repayment calculator for the detail).
Non-resident and working holiday maker tax rates — this calculator uses Australian resident rates only.

If any of these apply to you, your actual tax and take-home pay will differ from the figures above.

Frequently asked questions

How much tax will I pay on $85,000 in 2026-27?

On a taxable income of $85,000 in FY2026-27, base tax is $16,020 and the Medicare levy is $1,700, for total tax of $17,720 and take-home pay of $67,280 — about $2,588 a fortnight. That's a marginal rate of 30% on the highest bracket reached, and an effective (average) rate of 20.8% across the whole income. The Low Income Tax Offset doesn't apply at this income (it runs out at $66,667).

What changed on 1 July 2026?

The second-lowest tax bracket dropped from 16% to 15%, under the Treasury Laws Amendment (More Cost of Living Relief) Act 2025 — the second of two legislated cuts (a further cut to 14% is due from FY2027-28). Anyone earning $45,000 or more saves exactly $268 a year in base tax compared with FY2025-26 — the calculator shows your own saving as its own result line. People earning less than $45,000 save a smaller amount, and no one below the $18,200 tax-free threshold pays any base tax in either year.

Does this include the Medicare levy and LITO?

Yes to both. The 2% Medicare levy is included with the single-person low-income reduction applied: no levy at all at or below $27,222 taxable income, then it phases in at 10 cents per dollar until the full rate catches up. The Low Income Tax Offset (up to $700) is applied automatically against base tax. Family and seniors (SAPTO) Medicare thresholds and the separate Medicare Levy Surcharge are NOT modelled — see "What this doesn't model" below.

What's the tax-free threshold?

$18,200 for both FY2026-27 and FY2025-26 — you pay no base income tax on the first $18,200 of taxable income. In practice you pay nothing until higher than that: the Low Income Tax Offset wipes out base tax up to about $22,866 in FY2026-27 (where 15% of the income above the threshold first exceeds the $700 offset), and the Medicare levy doesn't start until $27,222.

Is this the same as what the ATO calculator shows?

It should be very close. This calculator applies the resident brackets, the Low Income Tax Offset and the single-person Medicare levy low-income reduction exactly as legislated, and can include your compulsory HELP/HECS repayment via the checkbox. It doesn't apply family or seniors Medicare thresholds, the Medicare Levy Surcharge, or other offsets (like SAPTO) — all of which the ATO's own calculators can factor in. Use the ATO's calculator for a figure that accounts for your full personal circumstances.