Australia Income Tax Calculator 2026-27: Rates, Medicare Levy and Offsets
Updated April 2026 · 10 min read
Australian Tax Rates 2026-27
The Stage 3 tax cuts (implemented July 2024) significantly changed Australian tax rates. The 32.5 percent bracket was replaced by a 30 percent rate applying to a much wider range of income (AUD 45,001 to 135,000). This benefits middle-income earners the most. Use our tax calculator (switch to AUD) for your exact tax and take-home pay.
Salary Sacrifice: The Biggest Tax Hack in Australia
Super contributions are taxed at 15 percent. If you are in the 37 percent bracket, every dollar salary sacrificed saves you 22 cents in tax. The concessional contribution cap is AUD 30,000 per year (including employer SG). If your employer contributes AUD 11,500 (11.5 percent of AUD 100K), you can salary sacrifice up to AUD 18,500 more. At 37 percent marginal rate, that saves AUD 4,070 in tax while building your retirement.
Other key deductions: work-from-home (67 cents per hour revised fixed rate or actual cost method), car expenses (cents per km method: 85 cents per km up to 5,000 km), uniform and laundry, self-education related to current employment, and professional subscriptions. Calculate your optimized take-home with our salary calculator and paycheck calculator.
Try These Free Calculators
Frequently Asked Questions
What are the Australian tax rates for 2026-27?
0 percent on AUD 0 to 18,200. 19 percent on AUD 18,201 to 45,000. 30 percent on AUD 45,001 to 135,000. 37 percent on AUD 135,001 to 190,000. 45 percent above AUD 190,000. Plus 2 percent Medicare Levy on taxable income.
How much tax do I pay on AUD 100,000 salary?
Income tax: approximately AUD 22,967. Medicare Levy: AUD 2,000. Total: approximately AUD 24,967. Take-home: approximately AUD 75,033 per year or AUD 6,253 per month. This is before super, HELP, and other deductions.
What is the Medicare Levy Surcharge?
If you earn above AUD 93,000 (single) or AUD 186,000 (family) and do not have private health insurance, you pay an additional 1 to 1.5 percent surcharge on top of the standard 2 percent Medicare Levy. Getting basic hospital cover avoids this surcharge.
How can I reduce my Australian tax?
Salary sacrifice into super (taxed at 15 percent vs your marginal rate). Claim all work-related deductions. Negative gearing on investment property. Charitable donations. Private health insurance to avoid MLS. Prepay deductible expenses before June 30.
When is the tax return deadline in Australia?
October 31 for self-lodgers. If using a tax agent, extended deadline typically to May the following year (must be registered with the agent by October 31). Late lodgement can incur failure to lodge penalties.