Australia Tax & Salary Calculators
Take-home pay with Medicare, HELP and super
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- 2026–27 financial year
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How income tax works in Australia for 2026–27
Australia's financial year runs from 1 July to 30 June, so 2026–27 covers 1 July 2026 to 30 June 2027. Employers withhold tax from every pay under PAYG withholding, and you settle the exact amount when you lodge your tax return after 30 June. Pay is usually quoted as an annual salary but paid weekly, fortnightly or monthly, which is why the Australian pay calculator shows all four.
Residents pay no tax on the first $18,200 of taxable income, the tax-free threshold. Above it, income is taxed at 15% up to $45,000, 30% up to $135,000, 37% up to $190,000 and 45% beyond. The 15% rate is new for 2026–27: it was 16% in 2025–26, so anyone earning over $45,000 saves $268 a year from that change alone. Each rate applies only to the slice of income inside its bracket, so a pay rise never leaves you worse off.
The low income tax offset (LITO) cuts the tax of lower earners by up to $700. The full $700 applies up to $37,500, then shrinks by 5 cents per dollar to $325 at $45,000 and by 1.5 cents per dollar to nothing at $66,667. Together with the tax-free threshold, it means a resident can earn about $22,866 before paying any income tax.
Most people also pay the Medicare levy of 2% of taxable income, which funds the public health system. Low-income earners pay a reduced levy or none. Singles earning more than $105,000 without appropriate private hospital cover also pay the Medicare levy surcharge: 1% up to $123,000, 1.25% up to $164,000 and 1.5% above.
HELP and other study loans are repaid through the tax system, not by fixed instalments. In 2026–27 repayments start once your repayment income passes $69,528: 15 cents per dollar above that, then 17 cents above $129,717. Your employer withholds an estimate from each pay when you tell them you have a loan.
Superannuation is your retirement savings. Employers must pay at least 12% of your earnings into your super fund on top of your salary (the super guarantee), and from 1 July 2026 they pay it each payday. Super contributions are taxed at 15% inside the fund rather than at your marginal rate, which is why salary sacrifice into super can lower the overall tax on your income.
| Figure | |
|---|---|
| Tax-free threshold (residents) | $18,200 |
| Resident rates | 15% to $45,000, 30% to $135,000, 37% to $190,000, 45% above |
| Low income tax offset | Up to $700, phasing out by $66,667 |
| Medicare levy | 2% (reduced for low incomes) |
| Medicare levy surcharge (singles) | 1% to 1.5% above $105,000 without hospital cover |
| HELP repayments start | $69,528 (15%, then 17% above $129,717) |
| Super guarantee | 12% of earnings, paid on top |
What changed for 2026–27
- Lowest rate cut to 15%. The rate on income between $18,201 and $45,000 falls from 16% to 15%, worth up to $268 a year. The other rates and thresholds are unchanged.
- HELP thresholds indexed. Compulsory repayments now start at $69,528 (from $67,000), with the 17% band starting at $129,717 (from $125,000).
- Payday Super. From 1 July 2026 employers pay the 12% super guarantee every payday instead of quarterly, on earnings up to the $270,830 maximum contribution base.