Full Tax Calculator
2026/27 income year · Income tax, Medicare, HECS, packaging, novated lease — all in one
How the 2026/27 tax rates work
Australian income tax is progressive — you pay higher rates only on the portion of income above each bracket threshold. The big change for 26/27 is that the second bracket (income from $18,201 to $45,000) has been reduced from 16% to 15%, saving anyone earning $45,000 or more $268 per year.
Salary packaging and novated leases reduce your taxable income, meaning you pay less income tax and Medicare Levy — but HECS and Medicare Levy Surcharge are still assessed on your gross income.
Take-home pay shown here includes the value of any salary packaged benefits (e.g. rent, mortgage repayments, or living expenses) since you receive those even though they don’t appear as cash in your bank account.
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Frequently asked questions
What is the difference between my marginal and effective tax rate?
Your marginal rate is the rate on your next dollar of income, which is the rate of the highest bracket you reach. Your effective rate is your total tax divided by your total income. It is lower than your marginal rate because each lower bracket only applies to the part of your income inside it.
Does this include the Medicare levy?
The estimate includes the Medicare levy and shows it as its own line, so you can see how much it adds. If you are exempt, you can switch it off in the calculator.
Is the result my actual tax bill?
No. It is an estimate based on the figures you enter. It does not include every deduction, offset or personal circumstance, so your tax return can differ. A registered tax agent can advise on your situation.
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General information only, not tax or financial advice. Figures are estimates based on 2026/27 ATO rates and thresholds. Page last updated: October 2026. Check ato.gov.au or speak to a registered tax agent before making decisions. See our disclaimer & privacy page.