2026-27 Australian income tax brackets
These rates apply to Australian residents for tax purposes from 1 July 2026 to 30 June 2027. The 16% rate on income between $18,201 and $45,000 dropped to 15% on 1 July 2026 — the first of two scheduled cuts.
| Taxable income |
Tax rate |
Tax on this bracket |
| $0 – $18,200 |
0% |
Nil |
| $18,201 – $45,000 |
15c per $1 |
Up to $4,020 |
| $45,001 – $135,000 |
30c per $1 |
Up to $27,000 |
| $135,001 – $190,000 |
37c per $1 |
Up to $20,350 |
| $190,001+ |
45c per $1 |
45c on every dollar over $190,000 |
On top of these rates, most Australian residents pay the
Medicare Levy of 2% on taxable income. The calculator above includes this automatically.
The
Low Income Tax Offset (LITO) reduces your tax by up to $700 if your taxable income is $66,667 or less. This effectively raises the tax-free threshold to around $22,867.
What’s changing from 1 July 2027: the 15% rate on income between $18,201 and $45,000 drops again to 14%. If you earn $45,000 or more, that’s another $268 in your pocket per year — and up to $536 a year compared with the old 2024-25 rates.
Super guarantee rate: 12%
Employers must contribute
12% of ordinary time earnings to super. This was the final scheduled increase, which took effect on 1 July 2025, and the rate stays at 12% going forward.
Two things employers need to know for 2026-27. First,
Payday Super is now in force. Since 1 July 2026 you must pay super with every pay run, and contributions must reach the employee’s fund within seven business days of payday — the old quarterly deadlines are gone. The Small Business Superannuation Clearing House also closed on 1 July 2026, so you’ll need payroll or super software that supports Payday Super. Second, the maximum super contribution base is now
$270,830 per year. You don’t have to pay SG on an employee’s qualifying earnings above this. Payday Super replaced the old quarterly cap ($62,500 per quarter in 2025-26) with this single annual limit.
If you’re setting up payroll for the first time, getting the super rate right from day one avoids the Super Guarantee Charge, which is calculated on total salary and wages (not just OTE) and includes interest plus an admin fee. It’s always more expensive than paying on time.
What employers need to know about pay
If you’re using this calculator to work out what a new hire will cost, the gross salary is only part of the picture. On top of the base salary, you’ll pay 12% super, workers’ compensation insurance (typically 1-5% depending on your industry and state), and payroll tax if your total wages exceed the state threshold.
For example, an employee on $80,000 costs roughly $89,600 before workers’ comp and payroll tax: $80,000 salary + $9,600 super. For a $100,000 salary, that’s $112,000+.
The employment contract is where you document the agreed salary, super, and any additional benefits. If you haven’t created one yet, Lawpath has
free employment contract templates for full-time, part-time, casual, and fixed-term hires. Each one is built by Australian employment lawyers and takes about 10 minutes to customise.
Your contract must comply with the applicable
Modern Award for your industry. The Award sets minimum pay rates, penalty rates, overtime, and allowances. This calculator gives you the tax and super breakdown, but always cross-check the gross rate against the Award before making an offer.
Frequently asked questions
Is this calculator accurate for the 2026-27 financial year?
Yes. It uses the current ATO tax brackets — including the new 15% rate on income between $18,201 and $45,000 — the 12% super guarantee rate, and the 2% Medicare Levy. These rates apply from 1 July 2026 until 30 June 2027.
How do I calculate my take-home pay in Australia?
Start with your gross annual salary, subtract income tax (using the brackets above), subtract the 2% Medicare Levy, and subtract any HECS-HELP repayments if applicable. The remainder is your take-home pay. This calculator does all of that automatically.
Does the calculator include superannuation?
Yes. It calculates the 12% super guarantee your employer must contribute on top of your salary. Super is not deducted from your take-home pay unless you’re salary sacrificing.
What’s the tax on a $100,000 salary in Australia?
On a $100,000 taxable income in 2026-27, you’ll pay approximately $22,520 in tax (including the Medicare Levy). That leaves roughly $77,480 take-home, before any HECS-HELP repayments or salary sacrifice.
What changed with the Stage 3 tax cuts?
The bottom rate dropped from 19% to 16% (and again to 15% from 1 July 2026), the 32.5% rate became 30%, the 37% bracket now starts at $135,001 (up from $120,001), and the 45% bracket starts at $190,001 (up from $180,001). Most Australians earning over $45,000 now save between roughly $1,000 and $4,500 per year compared with the old settings.
Do I need an employment contract to hire someone?
A written contract isn’t technically required by the Fair Work Act, but you need one in practice. Without it, you have no documented record of the agreed salary, hours, or entitlements. Lawpath has
free employment contract templates for every employment type.
How does PAYG withholding work?
Your employer deducts income tax from each pay and sends it to the ATO on your behalf. The amount withheld is based on the ATO’s withholding tables and your tax file number declaration. At the end of the financial year, any difference between what was withheld and what you actually owe is settled through your tax return.
What’s changing from 1 July 2027?
The 15% tax rate drops again to 14%, saving anyone earning $45,000+ a further $268 per year. Payday Super is already in effect (since 1 July 2026), so employers pay super with every pay run rather than quarterly.
Hiring your first employee? Create a free employment contract and get the paperwork sorted in under 10 minutes.
