Australian income tax calculator

What the result means

Income tax is assessed on taxable income for a financial year, then reduced by offsets such as LITO. The Medicare levy is separate. PAYG withholding during the year is a different formula.

How it is calculated

Tax payable = max(bracket tax − LITO, 0) + Medicare levy

• Taxable income: Assessable income minus deductions.
• LITO: Up to $700, tapering to nil at $66,667. Cannot create a refund.

Bracket tax is applied to taxable income. LITO reduces income tax only. Medicare uses the single low-income shade-in.

Worked example

$95,000 taxable income in 2026–27

No standard deduction.

Income tax

$4,020 + 30% × $50,000 = $19,020

LITO

$0

Medicare

$1,900

Total

$20,920

About $74,080 remains if $95,000 was also gross salary.

Not a tax return and not advice

Rates are the 2026–27 resident individual brackets. The tool assumes you are a resident for the whole year, does not apply HELP, MLS, SAPTO or other offsets, and does not split income across years.

Use the salary calculator when you want payslip-style weekly or monthly take-home using PAYG Scale 2.

Questions