🇦🇺 ATO Tax Calculator 2025–2026

ATO Tax Calculator 2025–2026: Calculate Your Australian Income Tax & Take-Home Pay

Every Australian employee needs to know what they actually take home — not just their gross salary. Our ATO tax calculator 2025–2026 uses the official Australian Taxation Office tax brackets, updated for the Stage 3 cuts effective from 1 July 2024, plus 2025–26 super, Medicare, LITO, and HELP rules. Whether you’re an employee, contractor, or comparing a job offer, you get an accurate estimate in seconds — for free.

Tax time for 2025–26 covers 1 July 2025 to 30 June 2026. Self-lodgers have until 31 October 2026. Tax agents may secure an extension to May 2027.

What Changed for Australian Tax in 2025–26 — and What’s Coming in 2026–27

Two years on from the Stage 3 tax cuts debate, the new rates are locked in and Australians across every income level are paying less tax than they were in 2023–24. Here’s a clear summary of what’s different and what’s ahead.

The Stage 3 Tax Cuts — Still in Effect, Unchanged for 2025–26

The Treasury Laws Amendment (Cost of Living Tax Cuts) Act 2024 changed the tax brackets from 1 July 2024 and those same rates apply unchanged in 2025–26. The two biggest wins for working Australians:

• The old 19% rate on income $18,201–$45,000 dropped to 16% — saving up to $804 for anyone earning above $45,000
• The old 32.5% rate on income up to $120,000 dropped to 30%, and the ceiling extended to $135,000 — saving up to $4,575 for higher earners

Anyone earning above $45,000 saves at least $268 per year compared to the pre-cut system. Someone on $100,000 saves $3,668 per year.

Superannuation Guarantee Reaches 12%

From 1 July 2025, the Super Guarantee (SG) rate increased to 12% — the final step in a legislated schedule that has been rising gradually since 2013. This is paid by your employer on top of your salary. On an $80,000 salary, that’s $9,600 per year going into your super fund.

HELP Indexation Reform — Lower Indexation and Past Credits

The government changed the way HELP debts are indexed. From 2024–25, indexation is the lower of CPI and the Wage Price Index (WPI). In addition, a one‑off credit was applied for excessive indexation that occurred in 2023 and 2024, reducing balances for all HELP debtors. There was no flat 20% reduction — the benefit varies based on each person’s account history.

What’s Coming in 2026–27 — Two Major Changes

The 2025 Federal Budget announced two significant changes starting from 1 July 2026:

• A further tax cut: The second income bracket drops from 16% to 15%, saving every Australian earning above $18,200 an extra $268 per year (subject to legislation passing)
• Payday Super: Employers must pay super on every payday (within 7 days), not quarterly. This ends the situation where workers discover unpaid super months after the fact

How to Use This ATO Tax Calculator

The calculator is fast, simple, and covers every common scenario. Here’s exactly what to enter:

1. Enter your income — type your gross salary before tax. You can enter an annual, monthly, or weekly figure — the calculator converts automatically.
2. Select financial year — choose FY 2025–26 (1 Jul 2025 – 30 Jun 2026) for the current year, or switch to 2026–27 to see the upcoming 15% bracket.
3. Set your residency status — Australian residents, foreign residents, and Working Holiday Makers (visa 417/462) all face different rates. If you’re unsure, Australian resident applies to most people living and working in Australia.
4. Toggle HELP/HECS — if you have a student loan, enable this to see your compulsory repayment deducted from take-home pay.
5. Private health insurance — without hospital cover, singles earning above $93,001 pay the Medicare Levy Surcharge (1%–1.5%). Tick this box if you hold hospital cover to avoid the surcharge in your estimate.
6. Enter deductions — add work-related expenses, donations, or other deductions to reduce your taxable income before the calculation runs.
7. Read your results — see income tax, Medicare levy, LITO offset, HELP repayment, take-home pay, and employer super broken down annually, monthly, fortnightly, and weekly.

2025–26 Australian Tax Brackets and Rates

These are the official ATO income tax brackets for Australian residents in 2025–26, sourced directly from the Australian Taxation Office. These rates are unchanged from 2024–25 — both years apply the Stage 3 bracket structure.

Plus Medicare Levy: 2% of taxable income for most Australian residents. Full exemption applies below $27,222 in 2025–26, with a shade‑in zone to $34,027. (These are the ATO‑published figures for 2025–26; the single shade‑in range is $27,222–$34,027.)

How Much Tax Will I Pay? Common Australian Salary Examples (2025–26)

The table below shows your income tax, Medicare levy, total tax, and take-home pay for the most commonly searched Australian salary levels in 2025–26. All figures assume an Australian resident with no HELP debt, private health cover held (no Medicare Levy Surcharge), and no additional deductions.

Assumptions: Australian resident, 2025–26 rates, no HELP debt, private hospital cover held, no additional deductions or offsets beyond LITO. Figures rounded to nearest dollar. Use the calculator above for your personalised result.

Worked Example: $80,000 Annual Salary (2025–26)

Here’s a full, transparent step-by-step breakdown for an Australian resident earning $80,000 — no HELP debt, private hospital cover held.

Medicare Levy, Medicare Levy Surcharge, and Private Health Cover

The Standard 2% Medicare Levy

Almost every Australian resident pays the Medicare levy — 2% of taxable income. On a $100,000 salary, that’s $2,000 per year. Low-income earners are protected: full exemption applies below $27,222 in 2025–26, with a shade-in zone between $27,222 and $34,027 where you pay a reduced levy. The levy funds Australia’s public healthcare system and is included in every PAYG withholding calculation automatically.

The Medicare Levy Surcharge — An Extra 1% to 1.5%

If your income exceeds the MLS thresholds in 2025–26 and you don’t hold an appropriate level of private hospital insurance, you pay the Medicare Levy Surcharge (MLS) on top of the standard 2% levy:

Basic private hospital cover typically costs around $30–$60 per month — far less than the surcharge for anyone earning above $93,001. At $100,000 income, the 1% surcharge is $1,000 per year; basic hospital cover for $400–$600 per year is significantly cheaper. The 2026–27 MLS thresholds are expected to be reviewed — confirm the current threshold at ato.gov.au.

Tax Offsets That Reduce Your Bill: LITO, SAPTO, and More

Low Income Tax Offset (LITO) — Up to $700

The LITO directly reduces your income tax payable — it’s not a deduction, it’s a dollar-for-dollar reduction in the tax you owe. For 2025–26:

• Full $700 offset if your taxable income is $37,500 or below
• Phases out at 5 cents per dollar between $37,500 and $45,000 (down to $325 at $45,000)
• Further phase-out at 1.5 cents per dollar between $45,001 and $66,667 (reaches $0 at $66,667)
• Nil above $66,667

The LITO applies automatically — you don’t claim it on your tax return. Your employer’s PAYG withholding already accounts for it.

Senior and Pensioner Tax Offset (SAPTO) — Up to $2,230

If you’re of pension age and meet the eligibility criteria (eligible for the Age Pension or certain other benefits), the SAPTO substantially increases your effective tax-free threshold. For 2025–26:

• Maximum SAPTO: $2,230 (singles), $1,602 each (couples, per person)
• Combined with the standard tax-free threshold and LITO, eligible seniors effectively pay no income tax up to approximately $32,279 (singles)
• The SAPTO phases out for income above $32,279 (singles) at 12.5 cents per dollar

SAPTO is claimed in your tax return at year-end or through a withholding variation. If you’re a senior receiving PAYG income, ask your tax agent whether a withholding variation makes sense to avoid overpaying throughout the year.

Work-Related Deductions

Deductions reduce your taxable income before tax is calculated — unlike offsets which reduce the tax directly. The most commonly claimed deductions for employees:

• Home office expenses: 67 cents per hour worked from home in 2025–26. You must keep a record (diary, timesheet, or spreadsheet) of every hour. Estimate 200 days at 8 hours = 1,600 hours × 67c = $1,072 deduction
• Vehicle use: 88 cents per kilometre for work-related travel excluding home to work (rate unchanged for 2025–26)
• Uniforms, protective clothing, tools, professional memberships directly related to your current job
• Self-education: Courses and seminars directly connected to maintaining or improving skills in your current role (not retraining for a new career)

HELP and HECS Repayments in 2025–26

If you have a Higher Education Loan Programme (HELP) debt — most commonly a HECS-HELP student loan — compulsory repayments are deducted through the PAYG system once your income crosses the repayment threshold. The ATO calculates this based on your repayment income, which includes salary plus fringe benefits and reportable super contributions — not just your take-home pay.

HELP Indexation Reform — Lower Rates and One‑Off Credit

From 2024–25, HELP indexation is capped at the lower of the Consumer Price Index (CPI) and the Wage Price Index (WPI). Additionally, a one‑off credit was applied to all HELP accounts to compensate for excessive indexation that occurred in 2023 and 2024. The credit varies; for many, it reduced the balance by several hundred dollars. There was no flat 20% reduction — your actual balance change depends on your individual account history.

Repayment Thresholds and Rates

From 2025–26, HELP repayments use a marginal system — you pay only on income above each threshold, not on your entire income. Compulsory repayment begins at $67,000 taxable income and increases in steps. The ATO applies this automatically through your employer’s PAYG withholding once you declare your HELP debt on your Tax File Number declaration.

If your employer withholds HELP repayments throughout the year but your actual annual income falls below the threshold, you’ll receive that amount back as a refund when you lodge your tax return. If you forgot to tell your employer you have a HELP debt, you’ll face an unexpected repayment at lodgement — check your PAYG withholding now if you’re unsure.

Superannuation in 2025–26 — and the Payday Super Change in July 2026

Super Guarantee Rate: 12% from 1 July 2025

The Superannuation Guarantee rate reached its final scheduled level of 12% from 1 July 2025. Your employer must contribute this on top of your ordinary time earnings — it doesn’t reduce your take-home pay. On a $90,000 salary, your employer contributes $10,800 per year into your super fund.

Check your payslips. The SG must be paid on ordinary time earnings, which includes your base salary, commission, and shift loadings — but generally excludes overtime. If your super contributions look lower than 12% of your ordinary pay, your employer may be underpaying. Contact the ATO or Fair Work Ombudsman if you suspect underpayment.

Concessional Contributions Cap: $30,000

The concessional (pre-tax) contributions cap for 2025–26 is $30,000. This covers both employer SG contributions and any voluntary salary sacrifice. If your employer contributes $9,000 (on a $75,000 salary), you can salary sacrifice a further $21,000 before hitting the cap. All concessional contributions are taxed at 15% inside the fund — significantly below the marginal rates most working Australians face.

Payday Super — Starts 1 July 2026

From 1 July 2026, employers must pay super on every payday and it must reach the employee’s super fund within 7 calendar days. This is a structural change to how super is administered in Australia. For employees, the practical benefit is earlier visibility of super payments and faster action on any shortfall. Employers using payroll software need to update their processes before 1 July 2026. This change does not affect the 12% rate or contribution caps.

5 Legal Ways to Reduce Your Tax Before 30 June 2026

1. Maximise concessional super contributions before 30 June 2026. Contributions up to the $30,000 cap (including employer SG) reduce your taxable income at your marginal rate and are taxed at only 15% inside the fund. On a $100,000 salary with 12% employer contributions ($12,000), you can voluntarily contribute a further $18,000 through salary sacrifice — saving $18,000 × (30% − 15%) = $2,700 in tax.
2. Claim home office expenses with a proper log. The ATO’s 67c per hour fixed-rate method is available for 2025–26. You need a written record of hours worked from home — a simple spreadsheet or diary is sufficient. If you work from home 3 days per week, 45 weeks of the year, at 8 hours per day: 1,080 hours × 67c = $723.60 deduction, saving $217 in tax at the 30% rate.
3. Pre-pay deductible expenses before 30 June. You can pre-pay up to 12 months of deductible expenses — investment loan interest, professional memberships, income protection insurance premiums — and claim the deduction in the current year. This is particularly valuable if you expect a lower income in 2026–27.
4. Avoid the Medicare Levy Surcharge with private hospital cover. If your income is approaching $93,001 and you don’t have hospital cover, get it before 30 June. Basic hospital cover costs far less per year than the 1% MLS, and there are no waiting periods for the purpose of MLS exemption.
5. Lodge your return early if you’re due a refund. The ATO typically processes returns within 12 business days. Lodging in July rather than October means your refund arrives months earlier — money you can direct into super, pay off debt, or invest immediately.

Common Tax Time Mistakes Australians Make

1. Confusing marginal rate with effective rate. Your 30% marginal rate applies only to income above $45,000 — not your entire salary. On $100,000, you actually pay 22.8% of your income in total tax. Many Australians believe they’re paying 30% of everything, which leads to confusion about how much super sacrifice or deductions will actually save them.
2. Leaving out the home office log. The 67c per-hour method is one of the most valuable deductions available to employees — but the ATO requires a contemporaneous record. “I think I worked from home about 200 days” is not accepted. Start your log from 1 July and update it weekly.
3. Not telling your second employer to withhold at the top rate. If you have two jobs, you can only claim the tax-free threshold at one employer. Your second employer should withhold tax at the no-threshold rate from the first dollar. If they don’t, you’ll face a tax debt at lodgement.
4. Using calculators with pre-cut 19%/32.5% rates. Many online calculators haven’t been updated since the Stage 3 cuts took effect in July 2024. If a calculator shows a significantly higher result than ours, it’s probably using outdated brackets.
5. Missing HELP repayments in self-managed withholding. Freelancers and contractors managing their own tax instalments sometimes forget to include the HELP repayment component in their PAYG estimates. The HELP repayment is calculated on repayment income (not just salary) and can catch people off guard at lodgement.

Frequently Asked Questions — ATO Tax Calculator 2025–26

Conclusion: Use This ATO Tax Calculator to Make Smarter Financial Decisions in 2026

The ATO tax calculator 2025–2026 above gives you an accurate, real-time estimate of your income tax, Medicare levy, LITO, HELP repayments, super, and take-home pay — for free, with no login required. Understanding your true tax position is the foundation of every smart financial move: salary sacrifice decisions, deduction planning, private health cover choices, and HELP management all depend on knowing your real numbers.

Key things to action before 30 June 2026:

• Check whether salary sacrificing into super makes sense given your marginal rate
• Start keeping a home office log if you work from home
• Confirm your private health cover situation if your income is approaching $93,001
• Verify your employer is paying 12% SG on every payslip
• Get your myGov account linked to the ATO so you’re ready to lodge from 1 July 2026

For official ATO tax information, visit the ATO tax rates page or the official ATO Tax Withheld Calculator. For personalised advice, speak with a registered tax agent (BAS agent or tax accountant).

👉 Use the ATO tax calculator above for your personalised 2025–26 estimate.