Calculate your income tax, Medicare levy, and take-home pay for 2025–26. Includes Stage 3 tax cut rates.
Australian Income Tax Brackets 2025–26
The following tax rates apply to Australian residents for the 2024–25 and 2025–26 financial years, incorporating the Stage 3 tax cuts that took effect on 1 July 2024.
| Taxable Income |
Tax Rate |
Tax Payable |
| $0 – $18,200 | 0% | Nil |
| $18,201 – $45,000 | 16% | 16c per $1 over $18,200 |
| $45,001 – $135,000 | 30% | $4,288 + 30c per $1 over $45,000 |
| $135,001 – $190,000 | 37% | $31,288 + 37c per $1 over $135,000 |
| $190,001+ | 45% | $51,638 + 45c per $1 over $190,000 |
Medicare Levy
Most Australian taxpayers also pay a 2% Medicare levy on their taxable income. Low-income earners below the Medicare levy threshold may be exempt or pay a reduced rate. The Medicare levy surcharge (an additional 1–1.5%) may apply to higher earners without private health cover.
What Changed with Stage 3 Tax Cuts?
From 1 July 2024, every Australian taxpayer received a tax cut. The key changes were: the 19% rate dropped to 16%, the 32.5% rate dropped to 30%, the 37% threshold increased from $120,000 to $135,000, and the 45% threshold increased from $180,000 to $190,000. This means someone earning $100,000 saves approximately $2,179 per year compared to the old rates.
Frequently Asked Questions
What are the Australian tax brackets for 2025–26?
The brackets are: $0–$18,200 (0%), $18,201–$45,000 (16%), $45,001–$135,000 (30%), $135,001–$190,000 (37%), $190,001+ (45%). Plus 2% Medicare levy on top.
How much tax do I pay on $100,000 in Australia?
On $100,000 taxable income, you'd pay approximately $20,788 in income tax plus $2,000 Medicare levy — a total of $22,788. That leaves take-home pay of about $77,212 per year or $1,485 per week.
Is super included in taxable income?
No. Compulsory employer super contributions (currently 11.5% of your ordinary earnings) are paid on top of your salary and are taxed separately at 15% within your super fund. Your salary figure is before super, unless your contract specifies a "total package" including super.
What is the tax-free threshold in Australia?
The tax-free threshold is $18,200. This means you pay no income tax on the first $18,200 you earn each financial year. This applies to Australian residents for tax purposes only — non-residents pay tax from the first dollar.
Do I need to pay Medicare levy?
Most taxpayers pay the 2% Medicare levy. You may be exempt if your taxable income is below the low-income threshold (around $26,000 for singles). If you earn over $93,000 (singles) and don't have private hospital cover, you may also pay the Medicare levy surcharge of 1–1.5% on top.