Australia · 2024/25
Australia Income tax calculator
Estimate the income tax an Australian resident owes on a year of taxable income under the 2024-25 rates, which run from 1 July 2024 to 30 June 2025. The result is the tax bill alone. The Medicare levy, study loan repayments and any offsets sit outside this figure, and the salary calculator handles the full take-home picture.
| Tax-free threshold | $18,200.00 |
| Tax at 16% ($18,200 to $45,000) | --4288% |
| Tax at 30% ($45,000 to $135,000) | --10500% |
| Income after tax | $65,212.00 |
How it works
- Nothing is charged on the first $18,200 of taxable income because of the tax-free threshold.
- Each slice above that is taxed at the rate for its bracket: 16% from $18,200 to $45,000, 30% to $135,000, 37% to $190,000, and 45% on anything higher.
- Only the portion of income inside a bracket pays that rate, so crossing a threshold never taxes your whole income at the higher percentage.
- The breakdown lists what each bracket contributes, and the total is the sum of those slices.
tax = 16% x slice1 + 30% x slice2 + 37% x slice3 + 45% x slice4
Split taxable income into the portions falling inside each bracket above the $18,200 threshold, multiply every portion by its bracket rate, then add the results. Income at or below $18,200 contributes nothing.
- slice1
- income between $18,200 and $45,000
- slice2
- income between $45,000 and $135,000
- slice3
- income between $135,000 and $190,000
- slice4
- income above $190,000
Income tax at a glance, 2024-25
| Tax on $45,000 | $4,288 | top of the 16% bracket |
| Tax on $80,000 | $14,788 | effective rate about 18.5% |
| Tax on $135,000 | $31,288 | top of the 30% bracket |
| Tax on $190,000 | $51,638 | where the 45% rate begins |
Worked example
A taxable income of $60,000 in 2024-25 pays 16% on the $26,800 between $18,200 and $45,000 ($4,288) plus 30% on the $15,000 above $45,000 ($4,500), a total of $8,788 in income tax.
Key facts
- The tax-free threshold shields the first $18,200 of a resident’s taxable income.
- Four marginal rates apply in 2024-25: 16%, 30%, 37% and 45%.
- The 30% bracket is the widest, running from $45,000 all the way to $135,000.
- Your effective rate is always below your marginal rate because the lower brackets soften the average.
Tips
- Claiming every legitimate deduction lowers taxable income before the brackets apply, which saves tax at your marginal rate.
- Concessional super contributions are taxed at 15% in the fund, often well under the rate you would pay on the same dollars as salary.
- If your income hovers near a threshold, timing deductible expenses into the right year can keep more income in the lower bracket.
Frequently asked questions
Does this figure include the Medicare levy?+
No. The 2% Medicare levy is calculated separately from income tax. Use the salary calculator to see tax and levy combined.
Am I covered if I am not an Australian resident for tax?+
No. Foreign residents and working holiday makers face different scales with no tax-free threshold, so this resident calculation will understate their tax.
Why does crossing into a higher bracket not raise tax on everything?+
Australia taxes by marginal slices. The higher rate touches only the dollars above the threshold, so a pay rise that crosses a bracket still leaves you ahead.
Where do tax offsets fit in?+
Offsets such as the Low Income Tax Offset come off the bill when you lodge your return, so the final assessment can be lower than the gross tax shown here.
What counts as taxable income?+
Assessable income minus allowable deductions, such as work-related expenses. Enter the figure after deductions for the closest estimate.
Did the brackets change for 2024-25?+
Yes. The Stage 3 changes that began on 1 July 2024 cut the lowest rate to 16%, widened the 30% bracket to $135,000 and lifted the top threshold to $190,000.
Things to watch
- This is a general estimate for residents and not tax advice. Your assessment depends on your full circumstances, so confirm anything material with the ATO or a registered tax agent.
- The Medicare levy adds roughly 2% on top for most taxpayers, and a HELP debt adds a compulsory repayment, neither of which appears here.
Sources
Last updated: 2024-07-01 · Applies to 2024/25
This is an estimate for general guidance, not financial, tax, legal or medical advice. Figures can change and individual circumstances vary. Always confirm with the official sources listed before making decisions.
- Resident rates for the 2024-25 income year. Excludes the Medicare levy, the Medicare levy surcharge, HELP and HECS repayments, and tax offsets.
Reviewed by Vikas Dulgunde.