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Income Tax Calculator Australia

Calculate your 2024–25 income tax using the latest ATO brackets. Includes Medicare levy, Low Income Tax Offset, and the Stage 3 tax cuts. See your exact take-home pay per week, fortnight or month.

2024–25 tax year Stage 3 cuts applied Includes Medicare levy LITO included
💰 Income Tax Calculator 2024–25
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Annual Take-Home Pay
$0
Gross income
$0
Income tax
$0
Medicare levy
$0
Effective tax rate
0%
💡 This estimate uses ATO 2024–25 marginal tax rates and the Low Income Tax Offset (LITO). It does not include superannuation, HECS/HELP debt, or Medicare levy surcharge. For payroll or BAS purposes, use ATO withholding tables.

Australian Income Tax Rates 2024–25

From 1 July 2024, the Stage 3 tax cuts took effect, reducing tax rates across the middle income bands. This was the largest income tax reduction for ordinary earners in many years. Here are the current brackets for Australian tax residents:

$0 – $18,200
0% (tax-free)
Tax-free threshold — no tax payable on income up to $18,200
$18,201 – $45,000
16 cents per $1
Previously 19% — reduced under Stage 3 cuts
$45,001 – $135,000
30 cents per $1
Significantly wider band than the previous $45k–$120k range at 32.5%
$135,001 – $190,000
37 cents per $1
Top marginal rate now starts at $190,001 rather than $180,001
$190,001 and above
45 cents per $1
Plus 2% Medicare levy applies to most taxpayers

Remember: Australia uses a marginal tax system. If you earn $90,000, you don't pay 30% on all of it. You pay 0% on the first $18,200, 16% on $18,201–$45,000, and 30% only on $45,001–$90,000.

Medicare Levy and Medicare Levy Surcharge

On top of income tax, most Australian residents pay a Medicare levy of 2% on their taxable income. This funds the public healthcare system. Low-income earners receive a partial or full reduction:

  • Singles earning under $26,000 (approx) pay a reduced levy or none at all
  • Families with lower combined incomes may also be exempt or have a reduced rate
  • Some recipients of certain government pensions are exempt

Separately, the Medicare Levy Surcharge (MLS) applies if you earn over $93,000 as a single (or $186,000 as a family) and don't hold private hospital cover. The surcharge ranges from 1% to 1.5% of your income. If you're paying the MLS, taking out private health insurance may actually save you money.

Low Income Tax Offset (LITO)

The Low Income Tax Offset reduces the amount of tax payable for lower earners. For 2024–25:

  • Maximum offset of $700 for incomes up to $37,500
  • Phases down by 5 cents per dollar between $37,500 and $45,000
  • Phases down by 1.5 cents per dollar between $45,000 and $66,667
  • No offset applies above $66,667

This offset is automatically applied when you lodge your tax return. It cannot reduce your tax below zero — it won't result in a refund on its own, but it does reduce what you owe.

Worked Examples

Example 1 — Retail Worker Earning $52,000

ComponentAmount
Gross salary$52,000
Tax-free threshold (0%)$0 on first $18,200
Tax at 16% on $18,201–$45,000$4,288
Tax at 30% on $45,001–$52,000$2,100
Less LITO (partial)–$0 (above $66,667 cutoff? No — approx –$160)
Medicare levy (2%)$1,040
Estimated annual tax + levy~$7,268
Take-home pay~$44,732/year ($860/week)

Example 2 — Nurse Earning $95,000

ComponentAmount
Gross salary$95,000
Tax at 0%, 16%, 30%$18,288 (on bands up to $95k)
LITONil (above threshold)
Medicare levy (2%)$1,900
Total deductions~$20,188
Take-home pay~$74,812/year ($1,439/week)

Example 3 — Senior Manager Earning $160,000

ComponentAmount
Gross salary$160,000
Tax across all bands up to $160k~$49,288
LITONil
Medicare levy (2%)$3,200
Total deductions~$52,488
Take-home pay~$107,512/year ($2,068/week)
Effective tax rate~31%

What's Not Included in This Calculator?

This calculator gives a solid estimate of your income tax and Medicare levy, but several factors could change your actual tax bill:

  • HECS/HELP repayments: If you have a student loan, repayments start at around $54,000 income and scale up. Use the ATO's repayment threshold table to check.
  • Salary sacrifice: Pre-tax super contributions, novated leases, or other salary sacrifice arrangements reduce your taxable income.
  • Tax deductions: Work-related expenses, investment expenses, charitable donations and other deductions all reduce your taxable income.
  • Investment income: Capital gains, rental income, dividends and interest affect your final tax position significantly.
  • Private health cover: If you're above the MLS threshold without hospital cover, an additional 1–1.5% surcharge applies.
  • Fringe benefits: Some employer-provided benefits are taxable.

For your actual tax position, speak with a registered tax agent or use the ATO's myTax lodgement platform.

Frequently Asked Questions

What are the Stage 3 tax cuts and how do they affect me? ▾
The Stage 3 tax cuts, which took effect on 1 July 2024, restructured the middle income tax brackets significantly. The 19% rate on $18,201–$45,000 was reduced to 16%. The 32.5% rate band was widened to cover $45,001–$135,000 and the rate was cut to 30%. The 37% rate band was retained but moved up to $135,001–$190,000. Most workers earning between $20,000 and $150,000 received a meaningful tax reduction. The average full-time worker saving was approximately $1,500 per year.
I'm a sole trader. Do I use the same tax rates? ▾
Yes — sole traders pay income tax at the same marginal rates as employees. Your taxable income is your business profit (gross income minus allowable business expenses) plus any other assessable income. You'll also need to pay Medicare levy, and may need to make PAYG instalment payments throughout the year rather than waiting until tax return time. The Small Business Tax Offset (up to $1,000) may also reduce your tax if you operate as a sole trader with turnover under $5 million.
Does superannuation reduce my income tax? ▾
Your employer's compulsory super contributions (11.5% in 2024–25) are not included in your taxable income — they go directly to your super fund and are taxed at 15% within the fund, not at your marginal rate. However, salary sacrifice contributions (voluntary pre-tax super contributions) do reduce your taxable income, which can provide meaningful tax savings for higher earners. Note that total concessional contributions are capped at $30,000 per year (including employer contributions).
What's the difference between marginal rate and effective rate? ▾
Your marginal tax rate is the rate applied to your last dollar of income — it determines how much tax you pay on any additional earnings. Your effective (or average) tax rate is your total tax divided by your total income. For example, if you earn $90,000 and pay $18,000 in tax, your effective rate is 20%, even though your marginal rate is 30%. Effective rate gives you a more realistic picture of your overall tax burden.
How do I get a bigger tax refund? ▾
A large refund means you've overpaid tax during the year — it's your own money being returned, not a bonus. To legitimately reduce your tax liability, focus on claiming all allowable deductions: work-related expenses (uniform, tools, home office), investment-related expenses (interest on investment loans), income protection insurance, and charitable donations. You can also explore salary sacrifice to reduce taxable income, or speak with a registered tax agent who may identify deductions you've missed. Our Salary After Tax Calculator can help you see your net pay in detail.

Disclaimer: This calculator uses 2024–25 ATO tax brackets and the Low Income Tax Offset. Results are estimates only and may not reflect your actual tax liability. Individual circumstances, deductions, and other income sources will affect your final tax position. Always verify with a registered tax agent or the ATO's official tools.

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