Australia Income Tax and Medicare Levy Calculator
Estimate 2025-26 Australian resident income tax, low income tax offset, Medicare levy, Medicare levy surcharge, and take-home income from one audited workflow.
Last Updated: May 2026
Australia resident tax
Estimate income tax, Medicare levy, Medicare levy surcharge, and take-home income
Use 2025-26 Australian resident tax rates, LITO, Medicare levy low-income thresholds, family threshold inputs, and private hospital cover settings in one calculation.
Tax and Medicare inputs
Enter annual taxable income and the household details needed for Medicare levy thresholds.
Resident taxable income for the 2025-26 income year.
Used to convert annual after-tax income into a pay-period view.
Family mode tests Medicare thresholds using household income.
Use SAPTO profile only when the senior or pensioner threshold applies.
Controls whether Medicare levy surcharge is estimated.
MLS add-backs
Add-back for surcharge threshold income.
Add-back used for the MLS threshold test.
Salary sacrifice and reportable employer contributions.
Result summary
Run a calculation to see tax, levies, and take-home income.
Rule snapshot: May 2026
Income year: 2025-26
Resident rates: 0%, 16%, 30%, 37%, 45%
LITO: Up to $700, phasing out by $66,667 of taxable income
Medicare levy: 2% of taxable income, with low-income reduction thresholds
MLS: 0%, 1%, 1.25%, or 1.5% depending on income tier and private hospital cover
Low-income thresholds: Budget 2026-27 thresholds: $28,011 single; $47,238 family; $4,338 per dependent child or student
Resident band count: 5. Reviewed for public-rate planning, not final lodgment.
Important Disclaimer
This calculator is an educational estimate for Australian resident tax planning. Use the ATO, current legislation, complete records, and a qualified tax professional for lodgment, compliance, or advice.
Reviewed For Methodology, Labels, And Sources
Every CalculatorWallah calculator is published with visible update labeling, linked source references, and review of formula clarity on trust-sensitive topics. Use results as planning support, then verify institution-, policy-, or jurisdiction-specific rules where they apply.
Reviewed by Iliyas Khan, Chief Operating Officer. Page updated May 2026. Tax, sales tax, insurance, and health calculators are reviewed when rules, rates, eligibility assumptions, healthcare standards, or source references change. Topic ownership: Tax calculators, Sales tax calculators, Insurance calculators, Health calculators.
Tax credentialed review: Named internal reviewer: Iliyas Khan, Chief Operating Officer. External credentialed professional review is still required before this page is treated as professional advice.
Internal tax and sales-tax methodology reviewer. Review scope: calculator assumptions, labels, source context, workflow clarity, and compliance-sensitive disclaimers.
Relevant review context: CalculatorWallah tax and sales-tax calculator workflow owner; Source-first review of IRS, state revenue, rate, and filing-sensitive references; Compliance-sensitive labels, assumptions, and user-facing disclaimer review.
Required professional credentials: CPA, Enrolled Agent, licensed tax professional. Scope: tax formulas, jurisdiction assumptions, withholding language, filing-sensitive examples, and compliance caveats.
This page is educational planning support. A named CPA, EA, or licensed tax professional should review the page before it is positioned as tax advice or used for filing decisions.
Source expectation: Review should cite current IRS, state revenue department, payroll-tax, or official tax authority sources where applicable.
How to Use This Calculator
Start with annual taxable income for the Australian income year, then choose family status, Medicare levy threshold profile, private hospital cover, and pay frequency. Add reportable amounts if you need a Medicare levy surcharge threshold check.
Use family mode when the Medicare levy reduction or surcharge tier depends on household income. For student loan repayments, pair this page with the Australia HELP Calculator.
Step 1: Enter taxable income
Use annual taxable income for the 2025-26 income year, not gross salary before deductions.
Step 2: Choose household and Medicare settings
Select single or family, choose the standard or senior/pensioner Medicare threshold profile, and enter spouse or dependent details where relevant.
Step 3: Set private hospital cover
Choose full-year appropriate hospital cover to remove Medicare levy surcharge, or no cover to estimate surcharge tiers.
Step 4: Add surcharge income items
Enter reportable fringe benefits, net investment loss, reportable super contributions, and spouse MLS income where they affect the surcharge threshold test.
Step 5: Review the audit
Check income tax, LITO, Medicare levy reduction, surcharge tier, annual net income, and per-pay estimate.
How the Australia Tax Estimate Works
The calculator applies 2025-26 Australian resident tax bands first, then reduces bracket tax by the low income tax offset where applicable. It layers Medicare levy next, using low-income thresholds and the 10% shade-in calculation before the full 2% levy applies.
| Income range | Band | Rate | Calculator note |
|---|---|---|---|
| Up to $18,200 | Tax-free threshold | 0% | No resident income tax in this band. |
| $18,201 to $45,000 | First taxable band | 16% | Applies only to income in this slice. |
| $45,001 to $135,000 | Middle band | 30% | The main working-income band. |
| $135,001 to $190,000 | Upper band | 37% | Higher resident marginal band. |
| Over $190,000 | Top band | 45% | Before Medicare levy and surcharge. |
The Medicare levy surcharge is tested separately. The threshold test uses taxable income plus reportable add-backs, and family mode includes spouse income. Full-year appropriate private hospital cover sets the surcharge to zero in this planning estimate.
Australian Income Tax, Medicare Levy, and Medicare Levy Surcharge
What This Calculator Covers
This page is the Australia-specific tax workflow missing from the tax hub. Existing Australia calculators cover HELP repayment and super guarantee. This calculator focuses on the income tax and Medicare side: resident brackets, LITO, Medicare levy, surcharge tiers, household thresholds, and net income.
It uses rules reviewed in May 2026: 0%, 16%, 30%, 37%, 45% resident rates, Up to $700, phasing out by $66,667 of taxable income, and 2% of taxable income, with low-income reduction thresholds.
Medicare Levy Low-Income Thresholds
The 2% Medicare levy can be reduced for low-income taxpayers. This calculator uses the increased 2025-26 thresholds announced in Budget Paper No. 2 for May 2026 and labels that assumption because the Budget describes the measure as subject to legislation.
| Profile | Lower threshold | Calculator treatment |
|---|---|---|
| Standard single | $28,011 | Budget 2026-27 threshold for 2025-26. |
| Standard family | $47,238 | Increase by $4,338 for each dependent child or student. |
| Senior or pensioner single | $44,268 | Higher low-income threshold profile. |
| Senior or pensioner family | $61,623 | Increase by $4,338 for each dependent child or student. |
Medicare Levy Surcharge Tiers
The Medicare levy surcharge applies only when income exceeds the relevant threshold and the taxpayer does not have appropriate private patient hospital cover. The family thresholds increase by $1,500 for each dependent child after the first child.
| Tier | Income threshold | Rate | Condition |
|---|---|---|---|
| Single base tier | $101,000 or less | 0% | No MLS threshold breach. |
| Single tier 1 | $101,001 to $118,000 | 1% | No appropriate hospital cover. |
| Single tier 2 | $118,001 to $158,000 | 1.25% | No appropriate hospital cover. |
| Single tier 3 | $158,001 or more | 1.5% | No appropriate hospital cover. |
| Family base tier | $202,000 or less | 0% | Increase family thresholds after first child. |
| Family tier 1 | $202,001 to $236,000 | 1% | No appropriate hospital cover. |
| Family tier 2 | $236,001 to $316,000 | 1.25% | No appropriate hospital cover. |
| Family tier 3 | $316,001 or more | 1.5% | No appropriate hospital cover. |
Limits Before Using the Result
| Limit | Why it matters |
|---|---|
| Not a full return | The estimate does not calculate every tax offset, spouse detail interaction, capital gains discount, foreign income, or private health insurance rebate reconciliation. |
| Medicare exceptions | Partial-year Medicare exemptions, prescribed persons, and overseas-resident periods are not modeled. |
| Student loans | HELP, HECS-HELP, VSL, and SFSS repayments are handled on the separate Australia HELP calculator. |
| Budget threshold assumption | The Medicare levy low-income thresholds use the May 2026 Budget announcement for 2025-26 and the page states that legislation status assumption. |
Keep the research moving with Australia Take-Home Salary Calculator, Australia HELP Calculator, Australia Super Guarantee Calculator, and Canada Income Tax and Payroll Calculator.
Frequently Asked Questions
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- 1.Australian Taxation Office - Tax rates for Australian residents(Accessed May 2026)
- 2.Australian Taxation Office - Medicare levy(Accessed May 2026)
- 3.Australian Taxation Office - Medicare levy surcharge income thresholds and rates(Accessed May 2026)
- 4.Australian Taxation Office - Low income tax offset(Accessed May 2026)
- 5.Australian Government Budget Paper No. 2, 2026-27(Accessed May 2026)