Work out income tax for 2026–27 using the resident tax rates: nil to $18,200, then 15%, 30%, 37% and 45%, after deductions and offsets.
This calculator applies the 2026–27 tax rates for Australian residents (income year 1 July 2026 to 30 June 2027), as set by Schedule 7 to the Income Tax Rates Act 1986:
| Taxable income | Rate on each dollar in the band |
|---|---|
| $0 – $18,200 | Nil |
| $18,201 – $45,000 | 15% |
| $45,001 – $135,000 | 30% |
| $135,001 – $190,000 | 37% |
| over $190,000 | 45% |
Enter your assessable income, your deductions and any tax offsets. The tool subtracts deductions to get taxable income, taxes each slice at its rate, then subtracts offsets (not below nil). For employees, the $1,000 standard deduction applies from 2026–27 unless your itemised work claims are larger, so enter the larger of the two plus any other deductions. If your taxable income is under $66,667, enter your low income tax offset: $700 up to $37,500, then reduced.
Worked example (illustrative): income $80,000 with the $1,000 standard deduction gives taxable income of $79,000. Tax = 15% × $26,800 + 30% × $34,000 = $14,220, no LITO. Marginal rate 30%; average rate about 17.8% of $80,000.
Limits: the result excludes the 2% Medicare levy, any Medicare levy surcharge and HELP repayments; add them in the take-home pay calculator. It assumes residency for the full year: foreign residents and working holiday makers have different rates, and part-year residents get a reduced tax-free threshold. From 2027–28 the 15% rate falls to 14%. General information only; check ato.gov.au and the Income Tax Rates Act 1986.
Worked Examples and Checklists
Go from gross income to taxable income, tax, offsets, Medicare levy and HELP repayment, then compare with PAYG withheld to see whether you get a refund or owe tax.
Rates, Thresholds and Caps
Resident tax brackets for 2025–26 and 2026–27, the cut from 16% to 15% and then 14%, how marginal rates work and what sits on top of the brackets.
