Australia's tax system is progressive: the more you earn, the higher your marginal rate. For 2025–26, the tax-free threshold is $18,200 and the top marginal rate of 45% applies to income above $190,000. Understanding how much tax you actually owe — and the deductions available to reduce it — is the starting point for any effective personal finance strategy.

Income Tax and Medicare

The Income Tax Calculator applies the 2025–26 ATO tax brackets, the Low Income Tax Offset (LITO), and the Medicare levy to calculate your net take-home pay. The standard Medicare levy is 2% of taxable income, though low-income earners may be exempt or face a reduced levy — the Medicare Levy Calculator shows the exact amount. If you earn above $93,000 (singles) and don't hold private hospital cover, you'll also owe the Medicare Levy Surcharge of 1% to 1.5%.

PAYG and Tax Returns

Most employees have PAYG withholding deducted by their employer each pay period. The PAYG Withholding Calculator shows whether the right amount is being withheld, helping avoid a surprise bill at tax time. The Tax Return Estimator goes a step further, accounting for work-related deductions to estimate your refund or liability.

Deductions and Benefits

Work-related deductions are a legitimate way to reduce taxable income. The Work From Home Calculator applies the ATO's fixed rate of 67 cents per hour for 2025–26. If you use a car for work, the Car Logbook Calculator compares the logbook method against the simpler cents-per-km method (88 cents per km for 2025–26, up to 5,000 km). For employees with access to salary packaging — particularly those in the public sector, health, or NFP — the Salary Packaging Calculator quantifies the FBT-exempt benefit of packaging living expenses.