Income Tax Calculator
Calculate your Australian income tax payable, effective rate, and marginal rate for any financial year.
Your total assessable income minus deductions
How It Works
Enter your taxable income and the calculator applies the progressive ATO tax brackets for your selected financial year. Each portion of your income is taxed at the rate for that bracket. The calculator shows total tax payable, your effective tax rate (total tax / total income), and your marginal rate (the bracket your top dollar falls into).
Frequently Asked Questions
What is the tax-free threshold in Australia?
Australian residents get a tax-free threshold of $18,200. You pay no income tax on the first $18,200 of taxable income. Foreign residents do not receive a tax-free threshold and are taxed from the first dollar.
What is the difference between marginal and effective tax rate?
Your marginal tax rate is the rate on the next dollar you earn (e.g. 30% for income between $45,001-$135,000). Your effective tax rate is total tax divided by total income — it's always lower because lower brackets are taxed at lower rates.
Does the income tax calculator include Medicare Levy?
This calculator shows income tax payable separately from the 2% Medicare Levy. The total amount owed to the ATO is income tax plus Medicare Levy plus any surcharges.
When did the Stage 3 tax cuts take effect?
The revised Stage 3 tax cuts took effect on 1 July 2024 (2024-25 FY). They reduced the 19% rate to 16%, the 32.5% rate to 30%, and raised the top bracket threshold from $180,000 to $190,000.
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