Income Tax Calculator

How income tax works in Australia

Australia uses a progressive tax system — higher income brackets are taxed at higher rates, but only on the portion of income within that bracket. This calculator applies 2024–25 rates including the Low Income Tax Offset (LITO) and Medicare Levy.

2024–25 Australian tax brackets

• $0 – $18,200 — Nil (tax-free threshold)
• $18,201 – $45,000 — 19 cents per dollar over $18,200
• $45,001 – $120,000 — $5,092 + 32.5 cents per dollar over $45,000
• $120,001 – $180,000 — $29,467 + 37 cents per dollar over $120,000
• $180,001+ — $51,667 + 45 cents per dollar over $180,000

Medicare Levy

Most Australian residents pay a Medicare Levy of 2% of their taxable income, which funds the public healthcare system. Low-income earners may be exempt or pay a reduced levy.