🇦🇺 AU Tax Calculator

Calculate your total tax liability including income tax, Medicare levy and tax offsets

Last updated on 14 Aug 2020

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How is this tax calculator different from the pay calculator?

This tax calculator calculates your tax rate while the pay calculator determines your take home pay.

The pay/salary calculator works out your take home pay based on your conditions, tax offsets and deductions. It also considers COVID-19 home office deductions for 2019/2020 financial year.

On the other hand, this tax calculator calculates your tax rate based on your conditions and eligible tax offsets only. It also gives you a breakdown of your income tax according to the threshold level.

Income Tax System

The personal income tax rate in Australia ranks among the highest in OECD countries and relies quite heavily on taxing individual when compared with other forms of taxes.

We consider Medicare Levy and Medicare Levy Surcharge as tax. Although a levy is supposed to be a “soft” or temporary tax, Medicare Levy has been around since 1984 and shows no sign of disappearing any time soon.

The calculator takes tax offsets into consideration. Offsets and deductions are usually used interchangeably but they are quite different. Tax offsets reduce the amount of tax one needs to pay while deductions reduce the taxable income, which in term might reduce the tax payable. For example, if you need to owe ATO $2000 and you have a tax offset of $500, you only need to pay ATO $1500.

If you are a non-resident or working holiday maker, then you don’t enjoy any offset and have very limited deductions. 🤷

Tax Threshold

Our tax calculator only goes back till 2016-17 financial year. For more historical tax rates, please refer to atotaxrates.info.

Resident

Tax residency is different from Australia’s resident status. In other words, you can be a resident for tax purposes even if you are not an Australian citizen or permanent resident. Only residents for tax purposes enjoy a tax-free threshold.

For previous tax rates for resident, you can either refer to atotaxrates.info or Lewis Accountants.

Financial year Taxable income Tax
2023-24
2022-23
$0 – $18,200 Nil
$18,201 – $45,000 19¢ for each $1 over $18,200
$45,001 – $120,000 $5,092 plus 32.5¢ for each $1 over $41,000
$120,001 – $180,000 $29,467 plus 37¢ for each $1 over $120,000
$180,001 and over $51,667 plus 45¢ for each $1 over $180,000
2021-22
2020-21
2019-20
2018-19
$0 – $18,200 Nil
$18,201 – $37,000 19¢ for each $1 over $18,200
$37,001 – $90,000 $3,572 plus 32.5¢ for each $1 over $37,000
$90,001 – $180,000 $20,797 plus 37¢ for each $1 over $90,000
$180,001 and over $54,097 plus 45¢ for each $1 over $180,000
2017-18
2016-17
$0 – $18,200 Nil
$18,201 – $37,000 19¢ for each $1 over $18,200
$37,001 – $87,000 $3,572 plus 32.5¢ for each $1 over $37,000
$87,001 – $180,000 $19,822 plus 37¢ for each $1 over $90,000
$180,001 and over $54,232 plus 45¢ for each $1 over $180,000

Working Holiday Makers

This tax was newly created in 2017. Working Holiday Makers (normally backpackers) are taxed on a progressive tax scale without the benefit of a tax-free threshold. If you hold a 417 (Working Holiday) or 462 (Work and Holiday) visa, you automatically fall under this residency status.

For previous tax rates for backpackers, refer to atotaxrates.info.

Financial year Taxable income Tax
2023-24
2022-23
$0 – $41,000 15¢ for each $1
$41,001 – $120,000 $6,150 plus 32.5¢ for each $1 over $37,000
$120,001 – $180,000 $31,825 plus 37¢ for each $1 over $120,000
$180,001 and over $54,025 plus 45¢ for each $1 over $180,000
2021-22
2020-21
2019-20
2018-19
$0 – $37,000 15¢ for each $1
$37,001 – $90,000 $5,550 plus 32.5¢ for each $1 over $37,000
$90,001 – $180,000 $22,775 plus 37¢ for each $1 over $90,000
$180,001 and over $56,075 plus 45¢ for each $1 over $180,000
2017-18
2016-17
$0 – $37,000 15¢ for each $1
$37,001 – $87,000 $5,550 plus 32.5¢ for each $1 over $37,000
$87,001 – $180,000 $21,800 plus 37¢ for each $1 over $90,000
$180,001 and over $56,210 plus 45¢ for each $1 over $180,000

Foreign Resident

Similar to Working Holiday Makers, there is no tax-free threshold. For previous tax rates for foreign residents, you can either refer to atotaxrates.info or Lewis Accountants.

Financial year Taxable income Tax
2023-24
2022-23
$0 – $120,000 32.5¢ for each $1
$120,001 – $180,000 $39,000 plus 37¢ for each $1 over $120,000
$180,001 and over $61,200 plus 45¢ for each $1 over $37,000
2021-22
2020-21
2019-20
2018-19
$0 – $90,000 32.5¢ for each $1
$90,001 – $180,000 $29,250 plus 37¢ for each $1 over $90,000
$180,001 and over $62,550 plus 45¢ for each $1 over $37,000
2017-18
2016-17
$0 – $87,000 32.5¢ for each $1
$87,001 – $180,000 $28,275 plus 37¢ for each $1 over $90,000
$180,001 and over $62,685 plus 45¢ for each $1 over $37,000

Tax Offsets & Rebates

If you are an Australian resident for tax purposes and your taxable income is below a certain amount, you may be eligible for all or one of the offsets listed below.

Tax offsets are non-refundable and will only lower the amount of tax payable on your taxable income. They also can’t be carried forward to future years. It also can’t be used to offset Medicare Levy.
For example, if you are entitled to $1000 tax offset but your tax payable is $800, you don’t have to pay ATO $800 but you won’t receive a $200 payout.

For previous tax offsets, refer to either ATO or Wolters Kluwer.

Low Income Tax Offset (LITO)

This offset was introduced in 1993 and had various adjustments. For historical info, you can either refer to atotaxrates.info or Lewis Accountants.

Financial year Taxable income Offset
2021-22
2020-21
2019-20
2018-19
2017-18
2016-17
2015-16
2014-15
2013-14
2012-13
Less than $37,000 $445
$37,001 – $66,667 Reduced by 1.5¢ for each dollar over $37,000

Low Middle Income Tax Offset (LMITO)

This offset was introduced in the 2018-19 Federal Budget. As such, there is no historical information.

Financial year Taxable income Offset
2021-22
2020-21
2019-20
2018-19
Less than $37,000 $255
$37,001 – $48,000 $255 plus 7.5% of the excess above $37,000 to a maximum offset of $1,080
$48,001 – $90,000 $1,080
$90,001 – $126,000 $1,080 less 3% of your taxable income above $90,000

Medicare Levy

This tax is used to fund Australia’s public health system known as Medicare. The Medicare Levy is 2% of your taxable income but you can get reduction or exemption depending on you and your spouse’s (if you have one) situations.

For historical info, you can either refer to Wolters Kluwer or Lewis Accountants.

Financial year Status Taxable income Rate
2019-20 Individuals Less than or equal to $22,801 0%
$22,802 – $28,501 10% of the excess
Over or equal to $28,502 2%
Families or single parents with 0 child Less than or equal to $38,474 0%
$38,475 – $48,092 10% of the excess
Over or equal to $48,093 2%
Families or single parents with 1 child Less than or equal to $42,007 0%
$42,008 – $52,508 10% of the excess
Over or equal to $52,509 2%
Families or single parents with 2 children Less than or equal to $45,540 0%
$45,541 – $56,924 10% of the excess
Over or equal to $56,925 2%
Families or single parents with 3 children Less than or equal to $49,073 0%
$49,074 – $61,340 10% of the excess
Over or equal to $61,341 2%
Families or single parents with 4 children Less than or equal to $52,606 0%
$52,607 – $65,756 10% of the excess
Over or equal to $65,757 2%
2018-19 Individuals Less than or equal to $22,398 0%
$22,399 – $27,997 10% of the excess
Over or equal to $27,998 2%
Families or single parents with 0 child Less than or equal to $37,794 0%
$37,795 – $47,242 10% of the excess
Over or equal to $47,243 2%
Families or single parents with 1 child Less than or equal to $41,265 0%
$41,266 – $51,581 10% of the excess
Over or equal to $51,582 2%
Families or single parents with 2 children Less than or equal to $44,736 0%
$44,737 – $55,920 10% of the excess
Over or equal to $55,921 2%
Families or single parents with 3 children Less than or equal to $48,207 0%
$48,208 – $60,258 10% of the excess
Over or equal to $60,259 2%
Families or single parents with 4 children Less than or equal to $51,678 0%
$51,679 – $64,597 10% of the excess
Over or equal to $64,598 2%
2017-18 Individuals Less than or equal to $21,980 0%
$21,981 – $27,475 10% of the excess
Over or equal to $27,476 2%
Families or single parents with 0 child Less than or equal to $37,089 0%
$37,090 – $46,361 10% of the excess
Over or equal to $46,362 2%
Families or single parents with 1 child Less than or equal to $40,495 0%
$40,496 – $50,618 10% of the excess
Over or equal to $50,619 2%
Families or single parents with 2 children Less than or equal to $43,901 0%
$43,902 – $54,876 10% of the excess
Over or equal to $54,877 2%
Families or single parents with 3 children Less than or equal to $47,307 0%
$47,308 – $59,133 10% of the excess
Over or equal to $59,134 2%
Families or single parents with 4 children Less than or equal to $50,713 0%
$50,714 – $63,391 10% of the excess
Over or equal to $63,392 2%
2016-17 Individuals Less than or equal to $21,655 0%
$21,656 – $27,068 10% of the excess
Over or equal to $27,069 2%
Families or single parents with 0 child Less than or equal to $36,541 0%
$36,542 – $45,676 10% of the excess
Over or equal to $45,677 2%
Families or single parents with 1 child Less than or equal to $39,897 0%
$39,898 – $49,871 10% of the excess
Over or equal to $49,872 2%
Families or single parents with 2 children Less than or equal to $43,253 0%
$43,254 – $54,066 10% of the excess
Over or equal to $54,067 2%
Families or single parents with 3 children Less than or equal to $46,609 0%
$46,610 – $58,261 10% of the excess
Over or equal to $58,262 2%
Families or single parents with 4 children Less than or equal to $49,965 0%
$49,966 – $62,456 10% of the excess
Over or equal to $62,457 2%

The family income threshold increases by a further $3,471 for each extra child or student.

Medicare Levy Surcharge

This surcharge is for residents who earn above a certain income but don’t have an appropriate level of private patient hospital cover. If you have private health insurance, you won’t have to pay this surcharge.

For historical info, you can either refer to atotaxrates.info or Lewis Accountants.

Financial year Status Taxable income Rate
2020-21
2019-20
2018-19
2017-18
2016-17
2015-16
2014-15
Individuals Less than $90,000 0%
$90,001 – $105,000 1%
$105,001 – $140,000 1.25%
Over or equal to $140,001 1.50%
Families with 0 or 1 child Less than or equal to $180,000 0%
$180,001 – $210,000 1%
$210,001 – $280,000 1.25%
Over or equal to $280,001 1.50%
Families with 2 children Less than or equal to $181,500 0%
$181,501 – $211,500 1%
$211,501 – $281,500 1.25%
Over or equal to $281,501 1.50%
Families with 3 children Less than or equal to $183,000 0%
$183,001 – $213,000 1%
$213,001 – $283,000 1.25%
Over or equal to $283,001 1.50%
Families with 4 children Less than or equal to $184,500 0%
$184,501 – $214,500 1%
$214,501 – $284,500 1.25%
Over or equal to $284,501 1.50%
Families with 5 children Less than or equal to $186,000 0%
$186,001 – $216,000 1%
$216,001 – $286,000 1.25%
Over or equal to $286,001 1.50%

The family income threshold increases by a further $1,500 for each extra child or student.

FAQs

How is tax calculated?

Tax in Australia is progressive and calculated based on your taxable income. Taxable income means income after deductions. There are different threholds and for Australian residents, it is
No tax if you earn less than $18,200
19¢ for each $1 over $18,200
$3,572 plus 32.5¢ for each $1 over $37,000
$20,797 plus 37¢ for each $1 over $90,000
$54,097 plus 45¢ for each $1 over $180,000

How much tax should I pay Australia?

From 2018/19 to 2021/22, the tax rates for Australian residents are:
0¢ on taxable income between $1 - $18,200
19¢ on taxable income between $18,201 - $37,000
32.5¢ on taxable income between $37,001 - $90,000
37¢ on taxable income between $90,001 - $180,000
45¢ on taxable income over $180,001

How much tax do you pay on 5000 dollars?

For resident, you don't have to pay any tax on taxable income less than $18,200 as it is a tax free threshold.
Working holiday makers are taxed at 15¢ on income between $1 - $41,000, so $5,000 x 0.15 = $750
Lastly, non-residents are taxed at 32.5¢ on income between $1 - $120,000, so $5,000 x 0.325 = $1,625