2026 Australia Salary Calculator Guide — ATO Tax Rates & Medicare Explained
Published: 2026-03-26
Understanding your Australian take-home pay requires navigating ATO tax brackets, the Medicare Levy, superannuation, and various offsets. For the 2025-26 financial year (1 July 2025 to 30 June 2026), the Stage 3 tax cuts remain in effect, the Super Guarantee has reached 12%, and HECS/HELP repayment thresholds have been updated. This guide explains everything you need to know about your Australian salary in 2026.
1. ATO Tax Brackets 2025-26
Australian residents are taxed at progressive marginal rates. The 2025-26 tax brackets (unchanged from 2024-25 following the Stage 3 reform) are:
| Taxable Income | Rate | Tax on This Bracket |
|---|---|---|
| $0 – $18,200 | 0% | Nil (tax-free threshold) |
| $18,201 – $45,000 | 16% | 16c for each $1 over $18,200 |
| $45,001 – $135,000 | 30% | $4,288 + 30c for each $1 over $45,000 |
| $135,001 – $190,000 | 37% | $31,288 + 37c for each $1 over $135,000 |
| $190,001+ | 45% | $51,638 + 45c for each $1 over $190,000 |
Note: From 1 July 2026, the 16% rate will drop to 15%, delivering an additional tax saving of up to $268 per year for anyone earning above $45,000.
2. Tax-Free Threshold
The first $18,200 of annual income is completely tax-free for Australian residents. Key points:
- Claim it on your TFN declaration when starting a new job
- Only claim from one employer if you have multiple jobs
- Non-residents do not receive the tax-free threshold (taxed from the first dollar at 30%)
- Part-year residents still get the full $18,200 (not pro-rated)
3. Medicare Levy
The Medicare Levy is 2% of your taxable income, funding Australia's public healthcare system. Low-income earners may qualify for a reduction or exemption:
- Singles: No levy below $27,222; reduced levy between $27,222 and $34,027
- Families: Threshold of $45,907 (plus $4,216 per dependent child)
- Medicare Levy Surcharge (MLS): An additional 1%–1.5% applies to higher earners (singles above $93,000, families above $186,000) without private hospital cover
4. Superannuation Guarantee: 12%
From 1 July 2025, the Super Guarantee (SG) rate is 12% of ordinary time earnings. This is the final scheduled increase, up from 11.5% in 2024-25:
| Financial Year | SG Rate |
|---|---|
| 2022-23 | 10.5% |
| 2023-24 | 11.0% |
| 2024-25 | 11.5% |
| 2025-26 | 12.0% |
If your contract is "total package inclusive of super," the 12% comes out of your total package, reducing your cash salary. If super is on top of your salary, it's additional.
Calculate your Australian take-home pay
Enter your annual salary to see income tax, Medicare Levy, super contributions, and your exact take-home pay.
Australian Salary Calculator →5. Low Income Tax Offset (LITO)
LITO provides additional tax relief for low and middle income earners:
- Maximum offset: $700 for taxable incomes up to $37,500
- Reduced by 5c per $1 between $37,500 and $45,000
- Then reduced by 1.5c per $1 between $45,000 and $66,667
- Effectively raises the tax-free income to approximately $21,885
6. HELP/HECS Repayment Thresholds 2025-26
If you have a HELP, HECS-HELP, VSL, or other study loan, compulsory repayments are made through the tax system when your repayment income exceeds the minimum threshold:
| Repayment Income | Repayment Rate |
|---|---|
| Below $54,435 | Nil |
| $54,435 – $62,850 | 1% |
| $62,851 – $66,620 | 2% |
| $66,621 – $70,618 | 2.5% |
| $70,619 – $74,855 | 3% |
| $74,856 – $79,346 | 3.5% |
| $79,347 – $84,107 | 4% |
| $84,108 – $89,154 | 4.5% |
| $89,155 – $94,503 | 5% |
| $94,504+ | 5% – 10% |
HELP repayments are calculated on your entire repayment income (not just the portion above the threshold), so crossing a threshold can result in a noticeable jump in your tax obligation.
7. Salary Packaging
Salary packaging (also called salary sacrificing) allows you to pay for certain items from your pre-tax salary, reducing your taxable income. Common items include:
- Additional super contributions: Tax-effective at only 15% contributions tax
- Novated car leases: Run costs from pre-tax income
- Laptops and devices: Work-related technology under $300 per item
- Meal entertainment and holiday accommodation: Available in certain industries
8. Salary Comparison Table
Here is a comparison of take-home pay at common salary levels (2025-26, no HELP debt, single):
| Gross Salary | Income Tax | Medicare (2%) | Super (12%) | Take-Home (Annual) |
|---|---|---|---|---|
| $60,000 | $8,788 | $1,200 | $7,200 | $50,012 |
| $80,000 | $14,788 | $1,600 | $9,600 | $63,612 |
| $100,000 | $20,788 | $2,000 | $12,000 | $77,212 |
| $120,000 | $26,788 | $2,400 | $14,400 | $90,812 |
| $150,000 | $36,538 | $3,000 | $18,000 | $110,462 |
Note: Super is paid by your employer on top of salary (not deducted). Take-home = Gross − Income Tax − Medicare. LITO not applied in this table for simplicity.
Get your exact Australian take-home pay:
Australian Salary Calculator →Sources: Australian Taxation Office (ATO), Treasury Stage 3 Tax Cuts fact sheet, ATO HELP repayment thresholds 2025-26, Australian Government budget.gov.au.
Frequently Asked Questions
What are the Australian tax brackets for 2025-26?
For 2025-26: 0% on $0–$18,200, 16% on $18,201–$45,000, 30% on $45,001–$135,000, 37% on $135,001–$190,000, and 45% on income over $190,000. The 2% Medicare Levy applies on top. From July 2026, the 16% rate drops to 15%.
What is the superannuation rate in 2025-26?
The Super Guarantee rate is 12% for 2025-26, up from 11.5% in 2024-25. This is the final scheduled increase. Your employer must contribute 12% of your ordinary time earnings into your nominated super fund.
What is the Medicare Levy and who pays it?
The Medicare Levy is 2% of your taxable income, funding Australia's public health system. Most taxpayers pay it. Singles earning below $27,222 may be exempt, and a reduced levy applies between $27,222 and $34,027. An additional Medicare Levy Surcharge (1–1.5%) applies to high earners without private hospital cover.