What this calculator does
This tool estimates the income tax payable by an Australian tax resident for the 2024-25 financial year (1 July 2024 to 30 June 2025), including the standard 2% Medicare levy. It applies the resident marginal tax brackets that took effect with the Stage 3 tax cuts. Figures are an estimate only and exclude offsets such as the low income tax offset (LITO), Medicare levy surcharge, HELP/HECS repayments and private health rebates.
How to use it
Enter your annual taxable income in Australian dollars (income after allowable deductions). Choose whether to include the Medicare levy — most residents pay it, but low-income earners and some exempt categories may not. The calculator returns your income tax, Medicare levy, total tax, net income after tax, and your effective tax rate.
The formula explained
Australia uses a progressive system: each slice of income is taxed at its own marginal rate. For 2024-25 the resident brackets are: 0% on the first $18,200; 16% from $18,201 to $45,000; 30% from $45,001 to $135,000; 37% from $135,001 to $190,000; and 45% above $190,000. The Medicare levy adds a flat 2% of total taxable income. Total tax is the sum of bracket tax plus the levy.
$$\text{Total Tax} = \text{Income Tax} + 0.02 \times \text{Income}$$ $$\text{where}\quad \text{Income Tax} = \left\{ \begin{aligned} &0 & &I \le 18200 \\ &0.16(I-18200) & &18200 < I \le 45000 \\ &4288 + 0.30(I-45000) & &45000 < I \le 135000 \\ &31288 + 0.37(I-135000) & &135000 < I \le 190000 \\ &51638 + 0.45(I-190000) & &I > 190000 \end{aligned} \right.$$ $$I = \text{Taxable Income}$$
Worked example
For a taxable income of $80,000: tax on the first $18,200 is $0; the next $26,800 (to $45,000) at 16% = $4,288; the remaining $35,000 at 30% = $10,500. Income tax = $14,788. Medicare levy = 2% × $80,000 = $1,600. Total tax = $16,388, leaving net income of $63,612 — an effective rate of about 20.49%.
$$\text{Income Tax} = 0 + 0.16 \times 26800 + 0.30 \times 35000 = 4288 + 10500 = 14788$$ $$\text{Medicare Levy} = 0.02 \times 80000 = 1600$$ $$\text{Total Tax} = 14788 + 1600 = 16388$$
FAQ
Does this include the Medicare levy surcharge? No. The surcharge applies to higher earners without private hospital cover and is not included.
Are tax offsets included? No. Offsets like LITO can reduce your actual tax, so your real payable amount may be lower.
Is this for non-residents? No. Non-residents use different rates and do not pay the Medicare levy. This tool assumes Australian tax residency.
