Work out your income tax and take-home pay in Australia for 2026–27, including the new 15% rate that started on 1 July 2026, the Medicare levy and the Low Income Tax Offset.
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2026–27 resident tax rates
| Taxable income | Tax rate |
|---|---|
| $0 – $18,200 | Nil |
| $18,201 – $45,000 | 15% |
| $45,001 – $135,000 | 30% |
| $135,001 – $190,000 | 37% |
| Over $190,000 | 45% |
The 16% rate fell to 15% from 1 July 2026 and is legislated to fall to 14% from 1 July 2027. Most people also pay the 2% Medicare levy, and low earners get the Low Income Tax Offset of up to $700.
Take-home pay at common salaries
| Salary | Tax (after LITO) | Medicare | Take-home |
|---|---|---|---|
| $40,000 | $2,695 | $800 | $36,505 |
| $60,000 | $8,420 | $1,200 | $50,380 |
| $85,000 | $16,020 | $1,700 | $67,280 |
| $100,000 | $20,520 | $2,000 | $77,480 |
| $150,000 | $36,570 | $3,000 | $110,430 |
Example: $85,000
Tax is 15% of $26,800 ($4,020) plus 30% of $40,000 ($12,000), so $16,020. With the $1,700 Medicare levy, take-home is $67,280, about $2,588 a fortnight. Your employer also pays 12% super ($10,200) on top.
Frequently asked questions
What are the tax brackets for 2026–27?
Nil to $18,200, 15% to $45,000, 30% to $135,000, 37% to $190,000 and 45% above, for Australian residents.
Did the tax rate change on 1 July 2026?
Yes. The 16% rate on income between $18,201 and $45,000 fell to 15%. It’s due to fall again to 14% from 1 July 2027.
What is the Medicare levy?
Usually 2% of taxable income, reduced or nil for people on low incomes.
Is super included in my salary?
Usually not. The 12% super guarantee is paid on top. If your offer is a ‘package’, choose that option to take super out first.
Sources
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