Pay Calculator Australia 2026-27
Last reviewed: July 30, 2026Estimate your Australian take-home pay for 2026-27. Includes income tax at updated rates (15% in the second bracket from 1 July 2026), Medicare levy, LITO, and your employer's Superannuation Guarantee. Based on confirmed ATO rates.
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How Australian income tax is calculated
Based on ATO rules for the 2026-27 financial year (1 July 2026 – 30 June 2027)
Australian residents pay income tax at progressive rates — as your income rises, you pay a higher rate on each additional dollar, not on your entire income. The figures below apply to the 2026-27 financial year.
Income tax brackets
The 15% rate in the second bracket was reduced from 16% on 1 July 2026 under the Treasury Laws Amendment (More Cost of Living Relief) Act 2025. A further reduction to 14% is legislated from 1 July 2027. These rates exclude the Medicare levy.
Medicare levy
In addition to income tax, most Australian residents pay a Medicare levy of 2% of their taxable income, which funds the public health system. The levy is calculated after income tax offsets and is shown separately in the results above.
Low-income earners receive a reduction or exemption. For 2025-26 (2026-27 thresholds pending ATO publication):
- Below $28,011: no Medicare levy
- Between $28,011 and $35,013: reduced levy — 10% of income above $28,011 (phase-in band)
- Above $35,013: full 2% levy on total income
The Medicare Levy Surcharge (MLS) — an additional charge of 1%–1.5% for higher earners without private hospital cover — is not included in this calculator.
Low Income Tax Offset (LITO)
LITO reduces the amount of income tax you pay. It is applied automatically when you lodge your tax return — no separate claim is needed. For 2026-27:
- Maximum offset: $700 for taxable income of $37,500 or less
- Phase-out 1: reduces at 5 cents per dollar for income from $37,501 to $45,000 (offset reduces from $700 to $325)
- Phase-out 2: reduces at 1.5 cents per dollar for income from $45,001 to $66,667 (offset reduces from $325 to $0)
LITO is non-refundable: it can reduce your income tax to zero, but if the offset exceeds your tax liability the unused portion does not result in a refund. The calculator reflects this correctly.
Example: $80,000 income → income tax of $14,520 → LITO $0 (income above $66,667 cutoff) → tax payable $14,520.
Example: $30,000 income → income tax of $1,770 → LITO $700 → tax payable $1,070.
Superannuation Guarantee (SG)
Your employer must contribute an additional 12% of your ordinary time earnings into your superannuation fund. This is the Superannuation Guarantee — confirmed at 12% for 2026-27, the same rate as 2025-26.
The SG is paid on top of your salary, not deducted from it. If you earn $80,000, your employer must also contribute at least $9,600 to your super each year. Contributions are taxed at 15% within the fund, which is lower than the marginal tax rate for most earners.
Employers are only required to pay the SG on earnings up to the maximum contribution base of $270,830 per year (ATO confirmed for 2026-27). For earnings above this threshold, no additional SG contributions are required on the excess.
Example: $300,000 salary → SG capped at $270,830 × 12% = $32,499.60 (not $36,000).
Salary vs. total package
Job advertisements may quote either a gross salary or a total package (cost to company). A total package includes your gross salary plus the employer's super contribution. To find the gross salary from a package figure, divide by 1.12 (at the standard 12% SG rate): a $89,600 package implies an $80,000 gross salary with $9,600 going to super.
Tick "This amount includes superannuation" in the calculator above when entering a package figure — the calculator will back-calculate your salary and display all amounts correctly.
Authoritative sources: ATO income tax rates, Medicare levy, and Superannuation Guarantee at ato.gov.au.
Frequently asked questions
What are the Australian income tax brackets for 2026-27?
For 2026-27, Australian residents pay: 0% on income up to $18,200; 15% on $18,201–$45,000; 30% on $45,001–$135,000; 37% on $135,001–$190,000; and 45% on income over $190,000. The 15% rate in the second bracket was reduced from 16% on 1 July 2026 under the Treasury Laws Amendment (More Cost of Living Relief) Act 2025. A further cut to 14% is legislated from 1 July 2027. These rates exclude the 2% Medicare levy.
What is the Medicare levy?
The Medicare levy is 2% of your taxable income and is collected alongside income tax to fund Australia's public health system. Low-income earners may pay a reduced amount or nothing. For 2025-26, singles pay no levy on income below $28,011 and a reduced rate (10% of income above $28,011) up to $35,013, after which the full 2% applies. The Medicare Levy Surcharge — an additional charge for higher earners without private hospital cover — is not included in this calculator.
What is LITO and do I qualify?
LITO stands for Low Income Tax Offset. It reduces your income tax payable and is applied automatically by the ATO when you lodge your return — no separate claim is needed. For 2026-27, the maximum LITO is $700 for taxable income of $37,500 or less. It phases out at 5 cents per dollar from $37,501 to $45,000 (reducing to $325), then at 1.5 cents per dollar from $45,001 to $66,667 (reducing to $0). LITO is non-refundable: if your income tax liability is less than the offset, the unused portion does not result in a refund.
How much superannuation should my employer pay?
For 2026-27, employers must contribute 12% of your ordinary time earnings (OTE) into your superannuation fund. This is the Superannuation Guarantee (SG), and it is paid on top of your salary — not deducted from it. The SG applies only up to the maximum contribution base of $270,830 per year; no contributions are required on earnings above that threshold. SG contributions are taxed at 15% within the fund, which for most earners is lower than their marginal income tax rate.
Does this calculator include HECS/HELP repayments?
Not yet. HECS-HELP compulsory repayment amounts depend on your repayment income and the applicable repayment rate, which ranges from 1% to 10% depending on your income. We plan to add HECS/HELP support in a future update. In the meantime, the ATO's study and training loan repayment calculator at ato.gov.au provides an estimate based on your circumstances.
What is the difference between salary and total package?
Your gross salary is the base amount you are paid before tax. Your total package (sometimes called cost to company, or CTC) includes your gross salary plus the employer's superannuation contribution. For example, an advertised "$89,600 package" at a 12% SG rate implies a gross salary of approximately $80,000, with $9,600 going into your super fund. Use the "This amount includes superannuation" checkbox in the calculator to account for this when entering a package figure.