Australia Tax Calculator 2025–26
FY 2025–26 · ATO Stage 3 Rates
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Australia Income Tax 2025–26
The Stage 3 tax cuts introduced in July 2024 continue for FY 2025–26. The first $18,200 is tax-free. Between $18,201 and $45,000 you pay 16% (down from 19%). From $45,001 to $135,000 you pay 30% (down from 32.5%). The 37% bracket now runs to $190,000, and 45% applies above that.
The Medicare Levy of 2% applies to most residents. The Low Income Tax Offset (LITO) reduces tax by up to $700 for lower earners. The Super Guarantee rate is 12% for FY 2025–26 — your employer pays this on top of your salary directly into your super fund.
2025–26 Tax Rates (Residents)
| Income | Rate |
|---|---|
| $0 – $18,200 | 0% |
| $18,201 – $45,000 | 16% |
| $45,001 – $135,000 | 30% |
| $135,001 – $190,000 | 37% |
| Over $190,000 | 45% |
+ 2% Medicare Levy for most residents
LITO — Low Income Tax Offset
- Maximum offset: $700 (income ≤ $37,500)
- Reduces to $0 at income of $66,667
- Applied automatically — reduces tax payable
HECS/HELP repayment 2025–26
- Threshold: $67,000
- Rate: 15¢ per $1 above threshold (up to $125k)
- Increases progressively to ~10% at high incomes
Superannuation 2025–26
- Super Guarantee rate: 12%
- Paid by employer on top of salary
- Concessional cap: $30,000/year
Frequently asked questions
On an $80,000 salary in FY 2025-26, you pay approximately $17,788 in income tax under Stage 3 rates. The 2% Medicare Levy adds $1,600. After applying the Low Income Tax Offset (which phases out at this income level), your total tax is around $19,388. Take-home pay is approximately $60,612 per year, or $5,051 per month.
The Stage 3 tax cuts took effect from 1 July 2024 and continue in FY 2025-26. The key changes: the 19% tax rate on income $18,201-$45,000 dropped to 16%, the 32.5% rate on $45,001-$120,000 dropped to 30% and now extends to $135,000, and the 45% top rate now starts at $190,000 instead of $180,000.
The Medicare Levy is 2% of your taxable income, paid by most Australian residents to fund the public health system. Low-income earners below $29,207 are exempt or pay a reduced amount. High earners without private hospital cover pay an additional Medicare Levy Surcharge of 1% to 1.5%.
Superannuation is Australia's retirement savings system. In FY 2025-26, employers must contribute 12% of your ordinary time earnings into your super fund — this is on top of your salary, not taken from it. You can also make voluntary salary sacrifice contributions to reduce your taxable income. The annual concessional contributions cap is $30,000.