Australia Income Tax Calculator — ATO Tax + Medicare Estimator
Calculate your 2024/25 Australian income tax, Medicare levy, Low Income Tax Offset, and net take-home pay. Covers residents, non-residents, and Working Holiday Makers.
Last updated: April 2026
Affects Medicare Levy Surcharge for incomes over $93,000.
Net Annual Income
$65,208
Monthly
$5,434
Weekly
$1,254
Gross Income
$85,000
Income Tax
$18,092
LITO Offset
−$0
Medicare Levy
$1,700
Total Tax
$19,792
Effective Rate
23.28%
Marginal Rate
32.5%
What is the Australian Income Tax Calculator?
This Australian Income Tax Calculator uses the 2024/25 ATO tax rates to estimate your total tax liability, including income tax, the Medicare Levy, the Medicare Levy Surcharge (if applicable), and the Low Income Tax Offset (LITO). It covers Australian residents, non-residents, and Working Holiday Makers.
Australia uses a progressive tax system, meaning higher portions of income are taxed at higher rates. The tax-free threshold of $18,200 means most residents pay no tax on the first $18,200 of income. The LITO further reduces tax for lower and middle-income earners, providing up to $700 in offset.
The Medicare Levy (2%) is collected alongside income tax to fund the public healthcare system. Higher-income earners without private hospital cover may also pay the Medicare Levy Surcharge of 1–1.5%. The calculator accounts for all these components to give you an accurate picture of your take-home pay.
How to use this calculator
- 1Enter your annual taxable income — Input your total annual taxable income in Australian dollars. This is your gross income minus any deductions such as work-related expenses, salary sacrifice, and other allowed deductions.
- 2Select your residency status — Choose whether you are an Australian Resident, a Non-Resident, or a Working Holiday Maker. Each category has different tax rates and entitlements.
- 3Indicate private hospital cover — If your income exceeds $93,000, indicate whether you hold eligible private hospital insurance. This determines whether the Medicare Levy Surcharge applies to you.
- 4Toggle Medicare Levy — Residents can toggle the Medicare Levy inclusion. Some individuals are exempt, such as those with certain medical conditions or those earning below the threshold.
- 5Review your results — The calculator shows your income tax, Medicare levy, LITO offset, total tax, effective tax rate, marginal rate, and your net income broken down annually, monthly, and weekly.
Formula & example
Total Tax = Income Tax − LITO + Medicare Levy + Medicare Levy Surcharge
Example calculation for a resident earning $85,000 with private hospital cover:
- Income: $85,000
- Income tax: $5,092 + ($85,000 − $45,000) × 32.5% = $5,092 + $13,000 = $18,092
- LITO: $0 (income over $66,667)
- Medicare Levy: $85,000 × 2% = $1,700
- MLS: $0 (has private hospital cover)
- Total Tax: $18,092 + $1,700 = $19,792
- Net Annual Income: $85,000 − $19,792 = $65,208
- Effective Tax Rate: 23.3%
- Marginal Rate: 32.5%
Benefits
Accurate 2024/25 Rates
Uses the latest ATO tax brackets and offsets for the 2024/25 financial year including the updated LITO.
Medicare Levy Clarity
Understand exactly how the Medicare Levy and Medicare Levy Surcharge affect your total tax bill.
Residency Comparisons
Compare tax outcomes across resident, non-resident, and Working Holiday Maker categories.
Take-Home Pay Breakdown
See your net income broken down into annual, monthly, and weekly figures for easy budgeting.
Effective vs Marginal Rate
Understand the difference between what you pay on your last dollar of income and your overall average tax rate.
MLS Planning
Find out if taking out private hospital cover would save you money by eliminating the Medicare Levy Surcharge.
Use cases
Salary Negotiation
Use the calculator to understand your actual take-home pay when comparing job offers with different salary packages. Knowing your net income helps you make better-informed career decisions.
Budget Planning
Calculate your monthly and weekly take-home pay to create an accurate household budget. Understanding your post-tax income is the foundation of sound financial planning.
Private Health Insurance Decision
Compare your tax position with and without private hospital cover. For incomes over $93,000, the MLS may exceed the cost of basic hospital cover, making private insurance financially beneficial.
PAYG Withholding Verification
Cross-check whether your employer's PAYG withholding is accurate so you are not caught with a large tax bill or unnecessarily forgoing take-home pay throughout the year.
Frequently asked questions
What are the 2024/25 Australian income tax rates?+
For Australian residents in 2024/25: $0–$18,200 is tax-free; $18,201–$45,000 is taxed at 19c per dollar over $18,200; $45,001–$120,000 pays $5,092 plus 32.5c per dollar over $45,000; $120,001–$180,000 pays $29,467 plus 37c per dollar over $120,000; $180,001 and above pays $51,667 plus 45c per dollar over $180,000.
What is the Medicare Levy and who pays it?+
The Medicare Levy is 2% of your taxable income and funds Australia's public health system. Australian residents with taxable income above approximately $26,000 pay it. There is a phase-in range where the levy is reduced for lower incomes. Certain individuals may be eligible for an exemption or reduction, such as those on low incomes or who meet specific medical criteria.
What is the Medicare Levy Surcharge (MLS)?+
The MLS is an additional 1% to 1.5% levy on top of the standard 2% Medicare Levy for higher-income earners who do not have private hospital cover. It applies to singles earning over $93,000 (2024/25): 1% for $93,001–$108,000, 1.25% for $108,001–$144,000, and 1.5% for $144,001 and above. Taking out eligible private hospital insurance exempts you from the MLS.
What is the Low Income Tax Offset (LITO)?+
The LITO reduces the amount of tax payable for lower to middle-income earners. For 2024/25, the maximum LITO of $700 applies to taxable income up to $37,500. It phases out at 5 cents per dollar between $37,501 and $45,000 (reducing to $325), then at 1.5 cents per dollar between $45,001 and $66,667, at which point it is fully phased out.
How are non-residents taxed differently in Australia?+
Non-residents of Australia for tax purposes are taxed at different rates and do not receive the tax-free threshold. Non-resident rates for 2024/25 are: 32.5% on income up to $120,000; 37% on $120,001–$180,000; and 45% on income over $180,000. Non-residents are also not entitled to the LITO and do not pay the Medicare Levy.
What tax rates apply to Working Holiday Makers?+
Working Holiday Makers (visa subclasses 417 and 462) are taxed at 15% on their first $45,000 of Australian income. Above $45,000 the resident rates apply: 32.5% up to $120,000, 37% up to $180,000, and 45% above $180,000. Working Holiday Makers are not entitled to the tax-free threshold or the LITO.
When is Australian tax due?+
The Australian financial year runs from 1 July to 30 June. Tax returns are generally due by 31 October following the end of the financial year if you lodge yourself, or by a later date if using a registered tax agent. PAYG (Pay As You Go) withholding means most employees have tax deducted automatically from each pay period throughout the year.