Income Tax Calculator

Gross Income, Tax and Take-Home Pay

Income tax applies progressively to taxable income. Only the part of income within each band receives that band's rate. Taxable income here is gross cash earnings less entered salary sacrifice and tax-deductible expenses, with a minimum of zero.

For a full-year adult resident in 2026/27, the first $18,200 is tax-free. The next bands are 15% to $45,000, 30% to $135,000 and 37% to $190,000. Income above $190,000 is taxed at 45%. The 2025/26 first taxable band is 16%.

The Income Tax Rates Act schedules set these rates. Full-year foreign residents use 30% from the first dollar to $135,000, then 37% to $190,000 and 45% above it.

The estimate subtracts income tax and the selected Medicare levy from annual cash earnings. It also subtracts entered salary sacrifice and education-debt deductions. Expenses entered as tax deductions reduce taxable income but remain outside this cash calculation.

Pay-as-you-go withholding on a payslip is an employer's periodic deduction. Your final annual liability also reflects the year's total income and tax adjustments. Dividing annual tax into weeks does not reproduce the Australian Taxation Office's payroll withholding schedules.

Weekly, Fortnightly and Annual Pay

Multiply weekly income by 52, fortnightly income by 26 or monthly income by 12 to obtain the annual amount used here. The results divide the annual estimate by those same counts.

A hypothetical $2,000 fortnightly payslip becomes $52,000 per year. A payroll year containing 27 fortnightly or 53 weekly paydays needs the actual annual total entered as annual income. Irregular commissions and bonuses also need an annual estimate, rather than assuming every pay period repeats.

Net-to-Gross Income

Choose target net income to work backwards from the amount you want to retain. The calculator repeatedly adjusts gross income until the same tax model produces the target net amount.

With the default 2026/27 resident settings, annual net income of $77,480 requires $100,000 gross. A full-year Medicare exemption changes the gross amount required to about $97,142.86. An entered $2,000 annual education-debt deduction instead raises it to about $102,941.18 under the default levy treatment.

The reverse result retains every entered deduction and offset. A payslip's net figure alone cannot reveal residency, salary packaging or Medicare eligibility. Set those assumptions before using gross-up income in a loan discussion.

HELP, Salary Packaging and Exemptions

The Higher Education Loan Program (HELP) deduction is an entered annual amount in this calculator. Compulsory repayment income can include reportable fringe benefits, reportable super contributions, net investment losses and exempt foreign employment income as well as taxable income.

Salary packaging can therefore reduce taxable salary while leaving a higher repayment-income figure. Use the HELP repayment calculator for repayment and debt-payoff scenarios, then enter the relevant annual deduction here.

The resident model includes the non-refundable low income tax offset. It starts at $700, tapers above $37,500 and reaches zero around $66,667. The low income tax offset rules cap the benefit at income tax payable. Other entered offsets use that same non-refundable treatment.

The individual Medicare option applies no levy through $28,011, then 10% of income above that threshold, capped at 2% of taxable income. It does not calculate family reductions or the higher senior threshold. Use the entered amount option for those cases and for part-year exemptions.

Under the Medicare levy rules, an exemption depends on your circumstances. Choosing exempt here applies zero levy for the entire year. The separate Medicare levy surcharge is outside this estimate.

Using the Estimate in a Loan File

For the synthetic default example, $100,000 gross produces $20,520 income tax and $2,000 Medicare levy in 2026/27. Net income is $77,480 annually, or $2,980 fortnightly over 26 periods. No salary sacrifice, expense deductions or education-debt deduction applies in that example.

Keep the tax year and assumptions with the payslips used in the file. A lender separately decides whether to accept overtime, commission or foreign income and whether to reduce it for serviceability. This estimate does not make those credit-policy decisions.

The interest worksheet keeps apportionment separate from the tax result. For $10,000 interest and a supplied 60% business-use fraction, the arithmetic gives $6,000 business use and $4,000 remaining use. The purpose and use of the borrowing determine whether any amount qualifies as a tax deduction.

Hourly Wages and Award Pay

The wage worksheet adds ordinary hourly pay, overtime at your multiplier and weekly taxable allowances. It multiplies that weekly total by entered paid weeks. Use the result as annual gross income to apply the selected tax assumptions.

At a hypothetical $40 hourly rate, 38 ordinary hours plus five overtime hours at 1.5 times pay produces $1,820 weekly. Adding a $50 taxable allowance gives $1,870, or $97,240 over 52 paid weeks.

Enter the applicable employee rate from their award, enterprise agreement or contract. Fair Work's Pay and Conditions Tool helps identify award rates and conditions. This worksheet does not select an award classification from a job title or calculate each penalty-rate entitlement.

Converting Overseas Income With an Entered Rate

Multiply the foreign amount by your entered AUD-per-unit exchange rate, then by the selected annual period count. The worksheet records the currency and rate date with the result.

For example, hypothetical USD $5,000 monthly at AUD $1.10 per USD $1 converts to AUD $5,500 monthly and AUD $66,000 annually. Use the converted amount as annual gross income only when that is the income you intend to assess under the selected Australian tax assumptions.

This conversion does not determine tax residency or calculate Singapore, UK or other foreign tax. It uses your supplied rate throughout. Record the exchange-rate evidence and apply any lender income shading separately.