Resident Tax Rates for 2025-26 and 2026-27
The Stage 3 rates have applied since 1 July 2024, with 16% as the lowest rate in 2025-26. A 2025 law cuts that rate to 15% from 1 July 2026 and 14% from 1 July 2027. Nothing else in the scale moves.
| Taxable income | 2025-26 | 2026-27 |
|---|---|---|
| $0 to $18,200 | 0% | 0% |
| $18,201 to $45,000 | 16% | 15% |
| $45,001 to $135,000 | 30% | 30% |
| $135,001 to $190,000 | 37% | 37% |
| Over $190,000 | 45% | 45% |
Anyone earning above $45,000 gains the full benefit of the cut, $268 a year. On $108,000 the 2025-26 tax is $23,188 against $22,920 in 2026-27.
Low Income Tax Offset and the Medicare Levy
The low income tax offset takes up to $700 off the tax bill. It is reduced by 5 cents per dollar above $37,500, sits at $325 at $45,000, and then falls by 1.5 cents per dollar until it runs out at $66,667. With the offset, a resident pays no income tax in 2026-27 until income passes about $22,867.
The Medicare levy is 2% of taxable income. Low earners get a reduction: a single person pays nothing up to $28,011, then 10 cents for each dollar above it until the full 2% applies. On $30,000 the levy is $198.90 rather than $600.
Super Guarantee at 12% and Packages That Include Super
Since 1 July 2025 the super guarantee is 12% of ordinary time earnings, paid by the employer into your fund. It does not come out of a normal salary, so the default setting adds it on top and leaves your net pay alone.
Some job offers quote a total package that includes super. Tick that box and the calculator splits the package first. A $112,000 package is $100,000 of salary plus $12,000 of super, and the salary takes home $77,480 a year.
The guarantee stops at the maximum contribution base, $270,830 of earnings in 2026-27 ($62,500 a quarter in 2025-26).
Worked Example on $108,000
- Tax on the first $18,200: nil
- $26,800 at 15%: $4,020
- $63,000 at 30%: $18,900
- Low income tax offset: nil at this income, so income tax $22,920
- Medicare levy at 2%: $2,160
- Net pay: $82,920 a year, $6,910 a month, $1,594.62 a week
That is 23.2% of gross. Each extra dollar in this range keeps $0.68, because 30% tax and the 2% levy apply to it. With a HELP debt the repayment adds $5,770.80 and net pay drops to $77,149.20.
Australian Take Home Pay at Six Salaries
| Salary | Income tax | Medicare | Net a year | Net a month | Net a fortnight |
|---|---|---|---|---|---|
| $45,000 | $3,695 | $900 | $40,405 | $3,367.08 | $1,554.04 |
| $60,000 | $8,420 | $1,200 | $50,380 | $4,198.33 | $1,937.69 |
| $80,000 | $14,520 | $1,600 | $63,880 | $5,323.33 | $2,456.92 |
| $108,000 | $22,920 | $2,160 | $82,920 | $6,910 | $3,189.23 |
| $150,000 | $36,570 | $3,000 | $110,430 | $9,202.50 | $4,247.31 |
| $200,000 | $55,870 | $4,000 | $140,130 | $11,677.50 | $5,389.62 |
All rows are 2026-27 with no HELP debt. At $40,000 the offset still trims the bill to $2,695; at $200,000 the 45% rate starts to bite.
HELP and Study Loan Repayments
Since 2025-26, compulsory repayments are charged only on income above the threshold, not on all of it.
- 2026-27: nothing up to $69,528, 15 cents per dollar to $129,717, then $9,028.35 plus 17 cents per dollar, never more than 10% of repayment income.
- 2025-26: nothing up to $67,000, 15 cents per dollar to $125,000, then $8,700 plus 17 cents.
On $100,000 the 2026-27 repayment is $4,570.80, and $4,950 on the older thresholds. Repayment income can include fringe benefits and reportable super, which the calculator leaves out.
What Counts as Taxable Pay
- Taxed: salary, overtime, bonuses, commissions, most allowances and leave loading.
- Not taxed in your pay: the employer's super guarantee (the fund pays 15% contributions tax on it), and reimbursed work expenses.
- Lower your tax: salary sacrifice into super and work-related deductions claimed in your return.
Australia has no state income tax, so the result is the same in New South Wales, Victoria, Queensland or any other state. Payroll tax is a cost for employers, not for you.
Weekly, Fortnightly and Monthly Pay
Employers withhold tax from each pay using the ATO PAYG schedules, which are built to reach about the same yearly total. On $108,000 that is roughly $2,076.92 gross and $1,594.62 net per week, or $3,189.23 net per fortnight.
A year with 27 fortnightly pay days can leave a small shortfall, and your tax return settles any difference after 30 June.
Assumptions and Sources for Australia
- Australian resident for the full year, tax-free threshold claimed with one employer.
- No Medicare levy surcharge, private health rebate or other offsets. Medicare thresholds for 2026-27 are not yet published, so the 2025-26 figures are used.
- HELP repayment worked on taxable income only.
Sources: ATO tax rates and the low income tax offset, Treasury Laws Amendment (More Cost of Living Relief) Act 2025, the 2026-27 Budget, the HELP repayment notice for 2026-27 and the ATO super guarantee pages. Rates for 2025-26 and 2026-27. Across the Tasman, see the New Zealand Gross to Net Calculator.
Frequently Asked Questions
How much is $108,000 after tax in Australia?
$82,920 a year in 2026-27, or $6,910 a month, after $22,920 income tax and a $2,160 Medicare levy.
What changed on 1 July 2026?
The rate on income between $18,201 and $45,000 fell from 16% to 15%. It falls again to 14% from 1 July 2027.
Is super taken out of my salary?
Not usually. The 12% super guarantee is paid by your employer on top of your salary, unless your contract quotes a package that includes super.
What is the tax-free threshold?
$18,200. With the low income tax offset, no income tax is payable in 2026-27 until income is about $22,867.
When do HELP repayments start in 2026-27?
Above $69,528 of repayment income, at 15 cents for each dollar over that amount.
Does the calculator match the ATO?
It uses the same resident rates, offset and levy as the ATO simple tax calculator. Your payslip may differ by a few dollars because PAYG tables round each pay.
Is pay in NSW taxed differently?
No. Income tax and the Medicare levy are federal, so a Sydney salary is taxed the same as one in Perth or Hobart.