Income tax calculator — Australia
Enter a salary and see income tax, the Medicare levy and take-home pay for the 2026–27 income year, band by band.
Covers 2026–27 income year · rates as at 2026-07-01
Take-home pay
Estimate$74,080
$6,173 per month
- Tax and levy
- $20,920
- Marginal rate
- 32%
- Average rate
- 22.02%
| Taxable income | $95,000 |
|---|---|
| Income tax | -$19,020 |
| Medicare levy | -$1,900.00 |
| Take-home pay | $74,080 |
On $95,000 the next dollar is taxed at 32% including the Medicare levy, so a $5,000 raise adds about $3,400 after tax.
How this is calculated
How this is calculated
Tax is charged band by band
The 30% rate applies only to the slice of income between $45,001 and $135,000. The first $18,200 is untaxed and the next band is 15%, which is why the average rate is always below the marginal rate.
tax = Σ max(0, min(income, ceiling) − floor) × rateThe Medicare levy shades in
Between $27,222 and $34,027 the levy is 10% of the excess over the lower threshold, not the full 2%. Someone on $30,000 pays about $278, not $600.
The low income tax offset tapers twice
LITO is $700 up to $37,500, then falls 5c per dollar to $45,000, then 1.5c per dollar until it runs out at $66,667. It reduces tax payable and is never paid out as cash.
Worked example: A $95,000 salary in 2026–27
| Gross salary | $95,000 |
|---|---|
| Salary sacrifice | $0 |
| Deductions | $0 |
| Income tax | $19,020 |
|---|---|
| Medicare levy | $1,900 |
| Take-home pay | $74,080 |
The average rate is 22.0% while the marginal rate is 32% — the first $18,200 is untaxed and the next $26,800 is taxed at 15%.
What this assumes
- Full-year Australian tax resident.
- No HELP or HECS debt.
- Private hospital cover held, so no Medicare levy surcharge.
- No dependants and no other offsets.
- Excludes employer super, which sits on top.
Where this commonly goes wrong
- A salary quoted "package including super" is not the same figure as one quoted "plus super" — the difference is currently 12% of the base.
- The Medicare levy surcharge is separate from the 2% levy and starts at 1% for singles above the surcharge threshold without hospital cover.
- Salary sacrifice reduces taxable income but the sacrificed amount is taxed at 15% inside super, so the saving is the gap between the two rates.
Questions
How much tax do I pay on $95,000 in Australia?
About $19,020 in income tax plus $1,900 Medicare levy for 2026–27, leaving roughly $74,080. Deductions, offsets, private hospital cover and any HELP debt will move that figure.
Is the 30% rate applied to my whole salary?
No. Australia taxes income in bands, so 30% applies only to the portion between $45,001 and $135,000. The first $18,200 is tax-free and the next band is taxed at 15%.
What changed on 1 July 2026?
The second band dropped from 16% to 15%, worth up to $268 a year. It falls again to 14% on 1 July 2027. The thresholds themselves were unchanged, so bracket creep continues.
Does this include the Medicare levy surcharge?
No. This assumes you hold private hospital cover. Without it, singles above the surcharge threshold pay an extra 1% to 1.5% on top of the 2% levy, which this calculator does not add.
Why is my take-home lower than this figure?
Employer withholding uses PAYG tax tables that ignore mid-year changes, and it may include a HELP repayment or a salary-sacrifice arrangement. Any gap is reconciled when you lodge your return.
Does salary sacrifice actually save me money?
It reduces taxable income, and the sacrificed amount is instead taxed at 15% inside super. If your marginal rate is 32% including the levy, you save the 17-point gap — but the money is locked away until preservation age.
Related tools
Sources
General estimate based on published ATO rates for the 2026–27 income year. Not tax advice, and it does not consider your objectives, financial situation or needs. Confirm your position with the ATO or a registered tax agent.
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