Australia Income Tax Calculator
Estimate income tax in Australia across a tax-free allowance and two rate bands, with effective and marginal rates.
About Australia Income Tax Calculator
Progressive systems tax each slice of income at its own rate rather than applying one rate to the whole amount. That is why the effective rate is always below the marginal rate — only the last slice is taxed at the top rate you reach. Indicative bands for Australia. Confusing the marginal rate with the effective rate leads people to believe a pay rise leaves them worse off, which progressive banding never does.
Formula
Australia Income Tax
Tax = (band 1 income × basic rate) + (income above the threshold × higher rate)
- allowance
- Income taxed at zero per cent
- threshold
- Income level where the higher rate begins
Frequently Asked Questions
How is Australia Income Tax calculated?
Tax = (band 1 income × basic rate) + (income above the threshold × higher rate) Progressive systems tax each slice of income at its own rate rather than applying one rate to the whole amount. That is why the effective rate is always below the marginal rate — only the last slice is taxed at the top rate you reach.
Why does Australia Income Tax matter?
Indicative bands for Australia. Confusing the marginal rate with the effective rate leads people to believe a pay rise leaves them worse off, which progressive banding never does.
What values do I need to enter?
This calculator takes 5 inputs: Annual taxable income, Tax-free allowance, Basic rate, Income where the higher rate starts, Higher rate. The pre-filled defaults are a realistic starting point — replace them with figures from your own environment for a result you can act on.
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Australia specifics
- Currency
- A$ AUDAustralian Dollar
- Region
- Oceania
- Country code
- AU
- Amounts look like
- $1,234,567.89
- Dates look like
- 9 Mar 2026
- Units
- metricWeek starts Monday
Results on this page are expressed in AUD (Australian Dollar). Figures are estimates for general planning — confirm current rates and thresholds with the relevant Australia authority before relying on them.