Income Tax Calculator

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Determine how much income tax to pay, possible tax refunds and any amount you may owe the Australian Tax Office through the Income Tax online financial calculator.


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Income Tax Calculator

This calculator will show you how much tax you need to pay based on your annual income. From this, you can then figure out how much tax you should get back in your tax return, or how much you owe the Australian Tax Office (ATO).

How do you calculate income tax?

Understanding how much you earn helps you understand how much tax you owe. Employed individuals are deducted with tax by their employers and are paid to the Australian Taxation Office (ATO) on your behalf.

Entrepreneurs and business owners calculate their income tax, or through an accountant and submit it individually to the ATO, together with the tax payment.

The amount of tax you pay for depends on the marginal tax rates of the fiscal year, also known as tax brackets.

What are the tax brackets for 2018?

Each year, tax brackets are released in Australia to determine how much tax you are liable to the government.

Marginal Tax Rates for 2018-2019

Taxable Income

Tax on This Income

$0-$18,200 Nil
$18,201 – $37,000 19c for every dollar over $18,200
$37,001 – $90,000 $3,572 + 32.5c for every dollar over $37,000
$90,001- $180,000 $20,797 + 37c for every dollar over $90,000
$180,001 – over $54,097 + 45c for every dollar over $180,000

Taxable Income

Your taxable income is the total income that comes from the following

  • Salary from employment
  • Pensions and annuities earned
  • capital gains
  • investments
  • foreign income
  • income from business or trusts
  • government payments

Levies and Surcharge

A Medical levy is also required for some individuals under a certain tax bracket in Australia. This amount is used to fund the public health system in Australia. The amount is 2% of your taxable income.

Low-income earners are not required to pay a Medical levy, or reduced in percentage for some.

A surcharge is applied on high-earning individuals. They will pay an extra 1%, 1.25% or 1.5% of their total taxable income depending on their income brackets or levels.

Your yearly income tax assessment always includes a Medical levy.

Tax Deductions

Deductions can be imposed on your income tax though expenses you incurred in order to earn your current income. These include:

  • Work-related expenses
  • Self-education expense
  • Donations to charity
  • Accountant fees and other costs in tax affairs

Tax Offsets

Offsets are applied to the actual computed income tax for the following conditions:

  • Low and income earners
  • Taxpayers with dependents
  • Pensioners and senior Australians
  • The taxable portion of a superannuation income stream

Get a detailed information on your tax deductions and offsets via ATO’s website.

Frequently asked questions

How to use the income tax calculator

The income tax calculator is very easy to use. Simply input your annual gross income and you’ll be able to see how much your monthly and annual income tax payments will be during the fiscal year.

Why should you use an income tax calculator

You should use an income tax calculator to be able to determine how much tax you owe. It is very helpful for businessmen and entrepreneurs who handles tax payment differently from employed individuals.

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