No 12 The Instrument

Your tax,
in brackets.

Move the cursor along the scale. Every bracket slice is a direct read from the statutory table of record — no approximation, no rounding.

Grounded in
ATO 2025-26
Key Takeaway · Australia 2026

Five brackets and a generous A$18,200 tax-free threshold. Employers also pay 12% superannuation on top of salary.

  • Top rate: 45%
  • Brackets: 5
  • Deduction: Tax-free threshold A$18,200
  • Social contributions: Medicare Levy 2% (no cap)
Income Scale · Gross
Filing: Single
A$
$0
$25k
$50k
$100k
$200k
$500k
About the Tax System

How Income Tax Works in Australia

Australia uses five brackets from 0% to 45%, with the first A$18,200 entirely tax-free. The Medicare Levy adds 2% on top of income tax. The Australian system has no state income tax, but the unique feature is mandatory superannuation — employers contribute 12% of salary to a retirement fund (in 2026), separate from take-home pay. From the employee's perspective, take-home pay is only reduced by income tax and Medicare; super is additional employer cost.

Worked example. On an A$75,000 salary, income tax is roughly A$14,442 and Medicare A$1,500 — about A$59,058 take-home, with A$9,000 going into super separately.

What this calculator shows. Move the slider in the calculator above to your gross salary. Every figure — tax owed, effective rate, marginal rate, social contributions, take-home — is computed bracket-by-bracket from the ATO 2025-26 statutory tables. There is no estimation or rounding.

Method

How We Calculate Australia Income Tax

01 — Source of record

Brackets, thresholds, and contribution rates come directly from ATO 2025-26, published by the Australian Taxation Office (ATO). We do not estimate, smooth, or interpolate.

02 — Computation

Income tax is computed bracket-by-bracket on income after the standard deduction. Mandatory social contributions are layered on top, applying statutory caps where they exist.

03 — Assumptions

Single filer, gross employment income, no other deductions or credits. No regional layer applies.

04 — Updates

Tables are reviewed annually when each authority publishes its update. See the data methodology page for full citations.