2026-27 Australia Salary Calculator Guide — ATO Tax Rates & Medicare Explained
Published: 2026-03-26 · Updated: 2026-10-08
Understanding your Australian take-home pay requires navigating ATO tax brackets, the Medicare Levy, superannuation, and various offsets. For the 2026-27 financial year (1 July 2026 to 30 June 2027), the lowest tax bracket dropped to 15%, the Super Guarantee has reached its final scheduled rate of 12%, and HELP/HECS repayments now use a new marginal system with updated thresholds. This guide explains everything you need to know about your Australian salary in 2026-27.
1. ATO Tax Brackets 2026-27
Australian residents are taxed at progressive marginal rates. The 2026-27 tax brackets (the second bracket cut from 16% to 15% on 1 July 2026) are:
| Taxable Income | Rate | Tax on This Bracket |
|---|---|---|
| $0 – $18,200 | 0% | Nil (tax-free threshold) |
| $18,201 – $45,000 | 15% | 15c for each $1 over $18,200 |
| $45,001 – $135,000 | 30% | $4,020 + 30c for each $1 over $45,000 |
| $135,001 – $190,000 | 37% | $31,020 + 37c for each $1 over $135,000 |
| $190,001+ | 45% | $51,370 + 45c for each $1 over $190,000 |
Note: The 16% rate applied for 2025-26 and earlier; it dropped to 15%from 1 July 2026, saving anyone earning above $45,000 up to $268.50 a year compared with 2025-26.
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 $28,011; a reduced levy (10% of income above the threshold) applies between $28,011 and $35,014
- Families: A higher threshold applies, indexed annually and increased per dependent child
- Medicare Levy Surcharge (MLS): For 2026-27, an additional 1%–1.5% applies to singles earning above $105,000 or families above $210,000 without private hospital cover (up from $101,000 / $202,000 in 2025-26)
4. Superannuation Guarantee: 12%
Since 1 July 2025, the Super Guarantee (SG) rate has been 12% of ordinary time earnings — the final step of a gradual increase, and it stays at 12% for 2026-27:
| Financial Year | SG Rate |
|---|---|
| 2022-23 | 10.5% |
| 2023-24 | 11.0% |
| 2024-25 | 11.5% |
| 2025-26 | 12.0% |
| 2026-27 | 12.0% (no further increase) |
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 $22,867 (at the 15% rate)
6. HELP/HECS Repayment Thresholds 2026-27
If you have a HELP, HECS-HELP, VSL, or other study loan, compulsory repayments are made through the tax system. Since 1 July 2025 the system changed to a marginal method — you only pay the percentage on the slice of income above each threshold, similar to income tax, rather than a flat percentage of your whole income:
| Repayment Income | Repayment |
|---|---|
| Below $69,528 | Nil |
| $69,528 – $129,717 | 15% of the amount over $69,528 |
| $129,717 – $186,050 | $9,028 + 17% of the amount over $129,717 |
| $186,051+ | 10% of total repayment income |
The $69,528 entry threshold for 2026-27 is up from $67,000 in 2025-26. Because the lower bands are now marginal, crossing the first threshold by a small amount no longer causes the large jump in repayment that the old whole-of-income system used to produce.
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 (2026-27, no HELP debt, single):
| Gross Salary | Income Tax (after LITO) | Medicare | Super (12%) | Take-Home (Annual) |
|---|---|---|---|---|
| $60,000 | $8,420 | $1,200 | $7,200 | $50,380 |
| $80,000 | $14,520 | $1,600 | $9,600 | $63,880 |
| $100,000 | $20,520 | $2,000 | $12,000 | $77,480 |
| $120,000 | $26,520 | $2,400 | $14,400 | $91,080 |
| $150,000 | $36,570 | $3,000 | $18,000 | $110,430 |
Note: Super is paid by your employer on top of salary (not deducted). Take-home = Gross − Income Tax − Medicare, with LITO applied (worth $100 at $60,000, phased out by $66,667). Figures from our live Australian salary calculator.
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 2026-27, Australian Government budget.gov.au.
Frequently Asked Questions
What are the Australian tax brackets for 2026-27?
For 2026-27: 0% on $0–$18,200, 15% on $18,201–$45,000 (cut from 16% on 1 July 2026), 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, with a reduction or exemption for low-income earners.
What is the superannuation rate in 2026-27?
The Super Guarantee rate stays at 12% for 2026-27, the same as 2025-26 — this was the final scheduled increase (up from 11.5% in 2024-25). 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 $28,011 are exempt, and a reduced levy applies between $28,011 and $35,014. An additional Medicare Levy Surcharge (1–1.5%) applies to high earners without private hospital cover — for 2026-27 that means singles above $105,000 or families above $210,000.