Australia · 2025/26
Australia Salary calculator
See your take-home pay in Australia for the 2025 to 2026 income year. Enter your gross salary and this works out the resident income tax, the Low Income Tax Offset and the Medicare levy, then shows what actually reaches your account. Compulsory superannuation is paid by your employer on top of your wage, so it is not deducted here.
| Gross salary | $90,000 |
| Income taxATO resident rates with LITO, 2025-26 | -$17,788 |
| Medicare levy2%, reduced for low incomes | -$1,800 |
| Take-home pay | $70,412 |
How it works
- Income tax applies to your salary in brackets: nothing on the first $18,200, then 16%, 30%, 37% and 45% on the higher slices.
- The Low Income Tax Offset trims up to $700 off the bill for incomes under $66,667 and is applied automatically.
- The Medicare levy is 2% of taxable income, reduced or removed at low income levels.
- Take-home pay is your salary minus income tax and the Medicare levy.
- The super guarantee is an employer contribution on top of your wage, so it does not reduce take-home pay.
Take-home = gross - income tax - Medicare levy
Income tax is charged on your salary in brackets from 16% to 45% above the $18,200 tax-free threshold, less the Low Income Tax Offset for incomes under $66,667. The Medicare levy adds 2% of taxable income, eased for low earners. Subtract both from your gross salary to reach your take-home pay.
- $18,200
- tax-free threshold for residents
- 16 / 30 / 37 / 45%
- resident income-tax brackets, 2025-26
- $700
- maximum Low Income Tax Offset, gone by $66,667
- 2%
- Medicare levy on taxable income
Where a salary sits in Australia
| National minimum wage, full time | ≈ $49,300 | $24.95 an hour, 2025-26 |
| Median full-time earnings | ≈ $80,000 | ABS, gross annual |
| Second-top bracket (37%) starts | $135,000 | taxable income |
| Top bracket (45%) starts | $190,000 | taxable income |
Worked example
A $90,000 salary in 2025-26 leaves about $70,412 a year, roughly $5,868 a month, after $17,788 income tax and $1,800 Medicare levy. The effective rate is about 21.8%.
Key facts
- The first $18,200 you earn is free of income tax under the tax-free threshold.
- Compulsory super is paid by your employer on top of your wage, so it does not reduce take-home pay.
- The Medicare levy is a flat 2% once your income clears the low-income threshold.
- These are resident rates; working holiday makers and non-residents are taxed differently from the first dollar.
Tips
- Salary sacrificing into super is taxed at 15% inside the fund, which can beat your marginal rate once you are above the 30% bracket.
- Keep receipts for work-related expenses, since deductions lower the income that tax and the levy are charged on.
- Adequate private hospital cover can remove the Medicare levy surcharge if you are a higher earner.
Take-home pay at different salaries, 2025-26
| Gross salary | Income tax | Medicare levy | Take-home | A month |
|---|---|---|---|---|
| $40,000 | $2,913 | $800 | $36,287 | $3,024 |
| $60,000 | $8,688 | $1,200 | $50,112 | $4,176 |
| $90,000 | $17,788 | $1,800 | $70,412 | $5,868 |
| $120,000 | $26,788 | $2,400 | $90,812 | $7,568 |
| $180,000 | $47,938 | $3,600 | $128,462 | $10,705 |
Frequently asked questions
Is superannuation included?+
No. The super guarantee (12% from 1 July 2025) is paid by your employer into your fund on top of your salary, so it does not come out of your take-home pay.
Does it include the Low Income Tax Offset?+
Yes. The offset of up to $700 phases out between $37,500 and $66,667 and is subtracted from income tax here, the same way the ATO applies it automatically when you lodge.
What about the Medicare levy surcharge?+
It is not included. The surcharge applies to higher earners without private hospital cover and is separate from the standard 2% levy.
Which year is this?+
The 2025-26 income year, 1 July 2025 to 30 June 2026. The resident brackets and rates are unchanged from 2024-25.
Will the rates change next year?+
Yes. Parliament has legislated a cut in the 16% rate to 15% from 1 July 2026, worth up to $268 a year, and a further cut to 14% from 1 July 2027. The other rates and thresholds stay as they are.
Things to watch
- A HELP or HECS study loan adds a compulsory repayment based on your income, which is not included here.
- Singles above about $101,000 without private hospital cover pay a Medicare levy surcharge of 1 to 1.5%, which is not included here.
- Bonuses and allowances are taxed too and can lift you into a higher bracket for that pay period.
Sources
- Tax rates - Australian residents · ATO
- Low income tax offset · ATO
- Medicare levy reduction or exemption (myTax 2026) · ATO
- Personal income tax: new tax cuts for every Australian taxpayer · ATO
Last updated: 2025-07-01 · Applies to 2025/26
This is an estimate for general guidance, not financial, tax, legal or medical advice. Figures can change and individual circumstances vary. Always confirm with the official sources listed before making decisions.
- Resident rates, 2025-26. Single person with no dependants for the Medicare levy.
- Includes the Low Income Tax Offset. Excludes the Medicare levy surcharge, HELP and HECS repayments, and salary packaging.
- Superannuation is an employer contribution on top of salary, not a deduction.
Reviewed by Vikas Dulgunde.