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SOUTHERN ALPHA

Tax · FY 2025-26

Income tax & take-home pay

Type your salary in — see your tax, Medicare levy, HECS and what actually lands in your account.

Annual take-home
$77,212
Effective tax rate
22.8%
Marginal: 30%
Per month
$6,434
Per fortnight
$2,970
Per week
$1,485
Per year
$77,212

Where your money goes

Gross income$100,000
Income tax− $20,788
Medicare levy (2%)− $2,000
Net take-home$77,212

Related calculators

Tax refund calculator

Estimate your ATO refund — or bill — at year end.

HECS calculator

See your compulsory repayment and the year your HECS clears.

Salary sacrifice calculator

Cut your tax by sacrificing to super.

Super calculator

Project your super balance at retirement.

Frequently asked questions

What are the Australian tax brackets for 2025-26?

Tax-free up to $18,200; 16% to $45,000; 30% to $135,000; 37% to $190,000; 45% above. Plus a 2% Medicare levy on most taxpayers earning over ~$27k.

Does this calculator include the Medicare levy?

Yes, optionally. It applies a flat 2% above the threshold and does not model the low-income reduction phase or Medicare Levy Surcharge.

Is the calculator updated for the Stage 3 tax cuts?

Yes — it uses the revised 'Stage 3' rates that took effect 1 July 2024 and remain in place for FY 2025-26.

How is HECS calculated on my pay?

Compulsory HECS uses your repayment income and a progressive scale starting at $67,000 for FY25-26. Your employer withholds via PAYG and the ATO reconciles at tax time.

What's the difference between marginal and effective tax rate?

Marginal rate is what you'd pay on the next dollar you earn. Effective rate is your total tax divided by gross income — always lower than your marginal rate because the lower brackets are taxed less.

How Australian income tax actually works

Australia uses a marginal tax system: you don't pay your top rate on your whole income, only on each dollar within that bracket. That's why your effective rate is always lower than your marginal rate — and why bonus tax 'feels' high but isn't really.

The FY 2025-26 resident scale

  • $0 – $18,200: nil
  • $18,201 – $45,000: 16¢ for each $1 over $18,200
  • $45,001 – $135,000: $4,288 + 30¢ for each $1 over $45,000
  • $135,001 – $190,000: $31,288 + 37¢ for each $1 over $135,000
  • $190,001+: $51,638 + 45¢ for each $1 over $190,000

Worked example

On a $100,000 salary, your income tax is $4,288 + ($100,000 − $45,000) × 30% = $20,788. Add the 2% Medicare levy ($2,000) and you keep $77,212 — an effective rate of 22.8%, well below the 30% marginal headline.

Why bonuses get hammered (and then refunded)

Employers withhold bonuses at a higher PAYG rate — sometimes 47% — because the ATO assumes the bonus might be one of many. At tax time the system reconciles against your real marginal rate, so any over-withholding comes back as part of your refund.

Marginal vs effective: the lever that matters

Salary sacrifice, investment property deductions, and charitable donations all reduce your taxable income at your marginal rate. A $5,000 deduction at 30% marginal saves you $1,500 — at 45% marginal it saves you $2,250. Always think in marginal-rate terms when planning deductions.

Uses 2025-26 resident tax brackets (0% to $18,200; 16% to $45k; 30% to $135k; 37% to $190k; 45% above). Medicare levy uses the flat 2% above the standard threshold and ignores low-income reduction. HECS uses the 2025-26 income-contingent repayment scale applied to gross income.