Estimate your income tax, Medicare levy, and take-home pay (resident individual, example brackets).
2024-25 resident individual tax brackets (example)
This calculator estimates your Australian income tax, Medicare levy, total tax, and take-home pay for the year, based on your gross annual income and any pre-tax deductions such as salary-sacrificed superannuation contributions, using the resident individual tax brackets.
Australia uses a marginal tax bracket system - each portion of your taxable income is taxed at the rate for that bracket, not your whole income at the rate of your top bracket. The Medicare levy is then calculated separately as a flat percentage of taxable income.
Example resident tax brackets (2024-25, example rates): A$0-A$18,200: 0% (tax-free threshold); A$18,201-A$45,000: 16%; A$45,001-A$135,000: 30%; A$135,001-A$190,000: 37%; over A$190,000: 45%. Formula: Taxable Income = Gross Income − Pre-Tax Deductions. Income Tax = sum of (portion of taxable income within each bracket × that bracket's rate). Medicare Levy = Taxable Income × 2%. Total Tax = Income Tax + Medicare Levy. Take-Home Pay = Gross Income − Total Tax − Pre-Tax Deductions.
Example: For a gross annual income of A$85,000 with no pre-tax deductions, the taxable income is A$85,000, giving an income tax of about A$16,288.00, plus a Medicare levy of A$1,700.00, for total tax of A$17,988.00 - leaving take-home pay of about A$67,012.00, an effective tax rate of roughly 21.16%. (Note: this example uses illustrative 2024-25 brackets - actual brackets, levies, and offsets change and may differ for your situation.)
Australia's financial year runs from 1 July to 30 June, and resident individuals benefit from a tax-free threshold (A$18,200 in the example above) before any income tax applies. The Medicare levy (2% in the example) funds Australia's public healthcare system and applies to most taxpayers, though some low-income earners may be exempt or pay a reduced rate. High-income earners without private hospital cover may also be subject to the Medicare Levy Surcharge - an additional levy (not included in this calculator) designed to encourage take-up of private health insurance. This calculator doesn't include tax offsets such as the Low Income Tax Offset (LITO), which can reduce the tax payable for lower-income earners, so your actual tax may be lower than estimated here if you're eligible. Salary sacrifice arrangements - most commonly additional superannuation contributions - reduce your taxable income (and therefore your tax), but contributions into super are then taxed at the concessional rate within the fund (typically 15%, subject to caps) rather than being tax-free; see our Superannuation Calculator and Take-Home Pay Calculator for related calculations.
The tax-free threshold is the amount of income you can earn each financial year before you start paying income tax - in the example brackets used here, this is A\$18,200. Income up to this amount is taxed at 0%, and only income above it is taxed at the applicable marginal rates.
The Medicare levy is a tax (2% of taxable income in the example used here) that helps fund Australia's public healthcare system (Medicare). It's separate from income tax and applies to most taxpayers, though low-income earners may be exempt or pay a reduced levy, and certain other exemptions may apply.
The Medicare Levy Surcharge is an additional levy (separate from the standard Medicare levy, and not included in this calculator) that applies to higher-income earners who don't have private hospital insurance cover. It's designed to encourage higher earners to take out private cover, reducing demand on the public system - if it applies to you, your total tax would be higher than this calculator shows.
LITO is a tax offset that reduces the amount of tax payable for individuals with lower taxable incomes, phasing out as income rises. This calculator doesn't include LITO, so if you're eligible, your actual tax payable may be lower than the amount estimated here - check the current LITO thresholds and amounts for your situation.
Salary sacrifice contributions to superannuation are deducted from your gross income before income tax is calculated, reducing your taxable income (and therefore your income tax and Medicare levy). However, these contributions are then taxed within your super fund at the concessional rate (generally 15%, subject to contribution caps), which is often lower than your marginal tax rate - this can result in an overall tax saving, depending on your income level.
Your marginal tax rate is the rate applied to your last (highest) dollar of income - the rate of the bracket your top income falls into. Your effective tax rate is your total tax divided by your total income, averaging across all the brackets your income passed through. Because of the tax-free threshold and lower rates on lower brackets, your effective rate is always lower than your marginal rate.
Disclaimer: The information, rates, and figures provided on this page are for educational and illustrative purposes only and do not constitute tax advice. The tax brackets, Medicare levy rate, and figures used are examples based on illustrative 2024-25 rates and do not include tax offsets (such as LITO) or the Medicare Levy Surcharge, and may not reflect current rates for your situation. Always consult a registered tax agent, accountant, or the Australian Taxation Office (ATO) for advice specific to your circumstances.