Free Tool
Australia Tax Refund Calculator
Use this free calculator to estimate your Australian income tax and Medicare levy for the 2025-2026 financial year. Australia uses a progressive tax system with 5 brackets ranging from 0% (tax-free threshold) to 45% for high earners.
This calculator uses official Australian Taxation Office (ATO) tax tables and the tax-free threshold of $18,200 for 2025-2026. Results are estimates and should be verified with the ATO or a registered tax agent.
Calculate Your Australian Tax
Australia Tax System Overview
The Australian financial year runs from July 1 to June 30. For the 2025-2026 financial year (July 1, 2025 to June 30, 2026), most employees pay tax automatically through PAYG (Pay As You Go) withholding, while self-employed individuals and those with other income lodge a tax return after the end of the financial year.
Income Tax Rates 2025-2026
| Taxable Income | Tax Rate |
|---|---|
| $0 to $18,200 | 0% (tax-free threshold) |
| $18,201 to $45,000 | 19% |
| $45,001 to $135,000 | 32.5% |
| $135,001 to $190,000 | 37% |
| Over $190,000 | 45% |
Medicare Levy
In addition to income tax, most Australian taxpayers pay a 2% Medicare Levy on their taxable income. Low-income earners may be exempt or pay a reduced levy. The Medicare Levy Surcharge (an additional 1-1.5%) applies to high-income earners without private hospital cover.
Key Australian Tax Offsets and Deductions
- Low and Middle Income Tax Offset (LMITO): Up to $1,500 for individuals earning under $126,000 (being phased out)
- Low Income Tax Offset (LITO): Up to $700 for individuals earning under $66,667
- Superannuation Contributions: Concessional contributions (employer + salary sacrifice) capped at $30,000 per year; taxed at 15% in the super fund
- Work-Related Expenses: Deductible if directly related to earning income (home office, tools, uniforms, travel)
- Self-Education Expenses: Deductible if directly related to current employment
Lodging Your Tax Return
Tax returns for the 2025-2026 financial year are due by October 31, 2026 if lodging yourself, or May 15, 2027 if using a registered tax agent. You can lodge through:
- myTax (ATO's free online service)
- A registered tax agent
- Compatible tax software
For more information, visit the ATO income tax rates page or use the ATO tax withheld calculator.
State and Territory Differences
While Australia's federal income tax system is uniform across all states and territories, each state levies its own payroll tax, land tax, and stamp duty. Here's how major states differ in their tax treatment:
New South Wales (NSW)
NSW has a payroll tax threshold of $1.2 million with rates from 4.85% to 5.45% depending on total wages. The state also applies stamp duty on property purchases, with rates varying based on property value and whether you're a first home buyer. NSW offers a First Home Buyer Choice allowing buyers to opt for an annual property tax instead of upfront stamp duty.
Victoria (VIC)
Victoria's payroll tax threshold is $700,000 with a rate of 4.85% for regional employers and 5.95% for metro employers. The state has relatively high stamp duty rates but offers exemptions and concessions for first home buyers purchasing properties under $1 million. Victoria also levies a land tax on investment properties and second homes.
Queensland (QLD)
Queensland has a payroll tax threshold of $1.3 million with rates from 4.75% to 4.95%. The state abolished stamp duty for first home buyers purchasing new builds under $750,000 as of 2024. Queensland does not have land tax on principal places of residence but does apply it to investment properties.
Western Australia (WA)
WA's payroll tax threshold is $1 million with a rate of 5.5%. The state has moderate stamp duty rates and offers first home buyer grants of up to $10,000 for new builds. WA has no land tax exemption threshold, meaning all property owners except those on their principal residence pay land tax from the first dollar of land value.
For state-specific tax information, visit your state's revenue office: Revenue NSW, State Revenue Office Victoria, Queensland Revenue Office, RevenueWA.