Australian Income Tax Calculator (2024-25)
Work out your exact take-home pay for 2024-25 using the official ATO Stage 3 brackets. Includes income tax, the 2% Medicare levy, the Low Income Tax Offset and optional HECS-HELP repayment — with results shown weekly, fortnightly, monthly or annually.
Your gross salary before tax.
Annual take-home pay
$70,412
After income tax, Medicare levy and offsets.
Income
Gross salary
$90,000
Taxable income
$90,000
Take-home pay
$70,412
Deductions
Income tax
$17,788
Medicare levy
$1,800
LITO offset
−$0
HECS-HELP
$0
Total tax
$19,588
Weekly
$1,354
take-home
Fortnightly
$2,708
take-home
Monthly
$5,868
take-home
Effective rate
21.8%
tax of gross
How Australian income tax works
Australia runs a progressive marginal tax system. Your income is sliced into bands, and each band is taxed at its own rate. You never get pushed into "a higher bracket" on your whole income — only the dollars that fall inside that bracket are taxed at the higher rate. Everything below it keeps the lower rates.
For most employees, your employer takes tax out of each pay packet using the ATO's PAYG withholding schedules and forwards it to the ATO. When you lodge your tax return at the end of the financial year (1 July to 30 June), the ATO works out what you actually owe based on your real income, deductions and offsets, and refunds or bills the difference.
Your final tax bill is built from three main moving parts: income tax on your taxable income, the Medicare levy on top of that, and any offsets (like LITO) that reduce what you owe. If you have a HECS-HELP debt, a compulsory repayment is added on top.
The 2024-25 tax brackets (Stage 3)
From 1 July 2024 the Stage 3 cuts took effect. These are the official ATO resident brackets used for the entire 2024-25 financial year:
| Taxable income | Rate | Tax at top of bracket |
|---|---|---|
| $0 – $18,200 | 0% | $0 |
| $18,201 – $45,000 | 16% | $4,288 |
| $45,001 – $135,000 | 30% | $31,288 |
| $135,001 – $190,000 | 37% | $51,638 |
| $190,001 and above | 45% | — |
Source: ATO, individual income tax rates for residents, 2024-25. Excludes Medicare levy.
If you only earn under $18,200 you pay no income tax at all (you may still need to lodge a return). The Stage 3 change dropped the second marginal rate from 19% to 16% and reshaped the middle brackets so most workers earning between $45,000 and $135,000 keep more of each extra dollar.
Medicare levy
The Medicare levy is an extra 2% of your taxable income, separate from income tax. It funds Australia's public healthcare system. For 2024-25:
- If your taxable income is below $27,222 (single, no dependants), you pay no levy.
- Between $27,222 and $34,028, the levy phases in at 10 cents in the dollar.
- Above $34,028 the full 2% applies on your whole taxable income.
Higher-income earners without private hospital cover may also pay the Medicare Levy Surcharge (an extra 1% to 1.5%). That's not included in the calculator above, but if your income is above $97,000 single or $194,000 family, it's worth checking with the ATO whether private hospital cover would save you money.
Low Income Tax Offset (LITO)
LITO is a non-refundable tax offset for lower-income workers. For 2024-25 the maximum is $700 and it phases out as your income grows:
- Full $700 if your taxable income is $37,500 or less.
- Phases out at 5 cents per dollar from $37,500 to $45,000 (down to $325).
- Phases out at 1.5 cents per dollar from $45,000 to $66,667 (down to zero).
LITO is automatically applied when you lodge your tax return — you don't claim it separately. Because it's non-refundable, it can only reduce tax payable to zero. If your tax bill is already nil, LITO doesn't pay you cash.
HECS-HELP repayments
If you have a HECS-HELP debt, you have to make a compulsory repayment once your repayment income hits the ATO's threshold. From 1 July 2024, repayments start at $54,435 and rise progressively to a top rate of 10% above about $160,000.
Repayment income includes your taxable income plus reportable fringe benefits and reportable super contributions — so unlike many other deductions, salary sacrificing into super won't reduce your HECS repayment. For a full breakdown by income band, see our HECS-HELP calculator.
Working out your take-home pay (worked example)
Let's run a $90,000 salary through the brackets to see exactly how the maths works:
- First $18,200 — taxed at 0% — tax: $0.
- Next $26,800 (up to $45,000) — taxed at 16% — tax: $4,288.
- Next $45,000 (from $45,001 to $90,000) — taxed at 30% — tax: $13,500.
- Income tax subtotal: $17,788.
- Medicare levy: 2% of $90,000 = $1,800.
- LITO: zero (income is above the $66,667 cut-off).
- Total tax: $19,588.
- Take-home pay: $70,412 per year, or about $2,708 per fortnight.
Your marginal rate at $90,000 is 30% income tax + 2% Medicare = 32%. Your effective rate (total tax divided by gross income) is about 21.8% — significantly lower, which is exactly how a progressive system is supposed to work.
Examples by salary
Quick-reference table for common Australian salaries (2024-25, resident, no HECS, full Medicare levy where applicable, LITO included):
| Gross salary | Income tax | Medicare | Total tax | Take-home |
|---|---|---|---|---|
| $50,000 | $5,538 | $1,000 | $6,538 | $43,462 |
| $70,000 | $11,788 | $1,400 | $13,188 | $56,812 |
| $90,000 | $17,788 | $1,800 | $19,588 | $70,412 |
| $120,000 | $26,788 | $2,400 | $29,188 | $90,812 |
| $150,000 | $36,838 | $3,000 | $39,838 | $110,162 |
| $200,000 | $56,138 | $4,000 | $60,138 | $139,862 |
Calculated using 2024-25 ATO brackets, 2% Medicare levy and LITO. Excludes HECS, MLS and private offsets.
Pay period equivalents
Converting an annual figure into weekly, fortnightly or monthly is straightforward, but Australian payroll uses some standard divisors:
- Weekly: annual ÷ 52. (Some payrolls use 52.143 to account for the extra day each year.)
- Fortnightly: annual ÷ 26. The ATO's official fortnightly tax tables use this divisor.
- Monthly: annual ÷ 12.
So on $90,000 gross, your fortnightly gross is $3,461 and your fortnightly take-home (after $19,588 annual tax) is about $2,708. Use our pay period converter for any annual figure, or just switch the period selector in the calculator above.
A small mismatch between this calculator and your actual payslip is normal. Employers withhold using the ATO's PAYG schedules, which round to the nearest dollar and use slightly different fortnightly maths to smooth the year. Over a full financial year, the totals reconcile.
When to use this calculator vs a payslip
Use this calculator for annual planning: comparing job offers, modelling a pay rise, working out year-to-date (YTD) expectations, or stress-testing a budget. It gives you a clean, full-year estimate built on the official brackets.
Use your payslip for the actual per-pay-period figures. Payroll software uses the ATO's withholding schedules, which can differ by a few dollars per pay because of rounding and how they handle leave loading, bonuses and allowances. Your annual tax return is the source of truth — that's when the ATO reconciles withholding to your real liability.
For super-related planning — including reducing your taxable income through pre-tax contributions — pair this with our salary sacrifice calculator and super calculator.
Frequently asked questions
How much tax do I pay on $80,000 in Australia?
On $80,000 gross for 2024-25, your income tax is $14,788 and your Medicare levy is $1,600 — a total tax bill of about $16,388. That leaves a take-home of around $63,612 per year, or roughly $2,447 per fortnight. LITO has fully phased out by $66,667, so it doesn't apply.
How is income tax calculated in Australia?
Australia uses progressive marginal brackets. The first $18,200 is tax-free, then each band is taxed at its own rate (16%, 30%, 37%, 45%). Only the income inside a band is taxed at that band's rate. Medicare levy (2%) is added on top. Offsets like LITO then reduce the final amount.
What is PAYG / withholding tax?
PAYG (Pay As You Go) withholding is the tax your employer takes from each pay and sends to the ATO on your behalf. The amounts come from the ATO's official withholding schedules and are designed to closely match your annual tax so you don't owe a lump sum at tax time. Your tax return reconciles withholding to your actual liability.
What is the Medicare levy?
A 2% surcharge on taxable income that helps fund Australia's public healthcare. It's separate from income tax. Low-income earners pay a reduced rate or are exempt — the single threshold is $27,222 with a shading-in band up to $34,028. High earners without private hospital cover may also pay the Medicare Levy Surcharge.
What is LITO?
The Low Income Tax Offset is a non-refundable offset of up to $700 for 2024-25. Full amount up to $37,500 taxable income, phasing out to zero at $66,667. It's applied automatically by the ATO when you lodge.
Do I need to lodge a tax return if my employer withholds enough?
In most cases, yes. Almost every Australian earning above the tax-free threshold must lodge an annual return, even when the right tax has been withheld. The return is how you claim deductions and offsets, and how the ATO reconciles your actual liability. Below the threshold with no withholding, you may instead lodge a non-lodgement advice.
How do tax brackets work — am I taxed at one rate or many?
Many. Each portion of your income that falls inside a bracket is taxed at that bracket's rate. Earning $1 more never causes your whole income to be re-taxed at a higher rate — only that extra dollar is. So a pay rise always leaves you better off in cash terms.
What's the difference between marginal and effective tax rate?
Your marginal rate is what you pay on your next dollar of income — for a $90,000 earner that's 30% income tax plus 2% Medicare. Your effective rate is total tax ÷ gross income; at $90,000 it's about 21.8%. Effective rate is always lower than marginal in a progressive system because earlier dollars sit in lower brackets.
When was Stage 3 introduced and what changed?
Stage 3 took effect on 1 July 2024. The original 2018 plan was amended in early 2024 to direct more of the cuts to lower- and middle-income earners. The bottom marginal rate dropped from 19% to 16%, and the 32.5% and 37% brackets were merged and rebased to 30% up to $135,000.
Is this calculator accurate?
It uses the official 2024-25 ATO resident brackets, the 2% Medicare levy with low-income shading-in, LITO, and the 2024-25 HECS thresholds. It produces a strong estimate for a typical Australian resident employee. It doesn't model the Medicare Levy Surcharge, private health rebate, work-from-home deductions, child support, foreign income or every offset. For complex situations, speak with a registered tax agent.
Official ATO references
- Individual income tax rates for residents — ATO
- Medicare levy — ATO
- Low Income Tax Offset — ATO
- HECS-HELP compulsory repayments — ATO
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This calculator is for information only and is not personal financial advice. For decisions specific to your situation, speak with a registered tax agent or licensed financial adviser. We are not affiliated with the Australian Taxation Office.