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Australian Income Tax Calculator (2024 25)

Calculate 2024-25 Australian income tax using official ATO brackets. Includes Medicare Levy, residency status, and accurate take-home pay estimates.

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Inputs

Annual Taxable Income (AUD)

Tax Residency Status

Include Medicare Levy (2%)

Total Income Tax Payable

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Total Income Tax Payable—

The formula

How the
result is
computed.

How Australian Income Tax Is Calculated for 2024-25

Australian income tax operates on a progressive marginal rate system, where each dollar of income falls into a bracket and is taxed at that bracket's rate — not at a flat rate on total income. The 2024-25 financial year marks a significant structural shift: the Stage 3 tax cuts, effective 1 July 2024, restructured the resident tax brackets to deliver relief across low, middle, and high income ranges. This income tax Australia calculator applies the official 2024-25 rates published by the Australian Taxation Office (ATO) to compute an estimated tax liability in seconds.

2024-25 Resident Tax Brackets

$0 – $18,200: Nil — the tax-free threshold applies to all Australian tax residents.
$18,201 – $45,000: 16 cents for each $1 over $18,200 (reduced from 19% in prior years under Stage 3).
$45,001 – $135,000: $4,288 plus 30 cents for each $1 over $45,000.
$135,001 – $190,000: $31,288 plus 37 cents for each $1 over $135,000.
Over $190,000: $51,638 plus 45 cents for each $1 over $190,000.

The Piecewise Tax Formula Explained

The total income tax payable (T) for a resident with taxable income (X) follows a piecewise linear formula structure. Each cumulative base figure — $4,288, $31,288, and $51,638 — represents the total tax already owed from all lower brackets, ensuring no income is taxed twice. The formula systematically adds the base cumulative amount to the applicable marginal rate multiplied by the income above the bracket's lower bound.

Medicare Levy (2%)

In addition to income tax, Australian residents pay a Medicare Levy of 2% on taxable income above the low-income threshold (approximately $26,000 for singles in 2024-25). This levy funds Australia's universal public health insurance system. As confirmed by the ATO Medicare Levy guidance, foreign residents and working holiday makers are exempt from this charge entirely. The combined figure — income tax plus Medicare Levy — represents total annual tax payable.

Worked Example 1: Taxable Income of $75,000

A resident employee earning $75,000 in taxable income for 2024-25 pays:

$0 tax on the first $18,200
16% on $26,800 (the $18,201–$45,000 band) = $4,288
30% on $30,000 (the $45,001–$75,000 band) = $9,000
Base income tax: $13,288
Medicare Levy: 2% × $75,000 = $1,500
Total tax payable: $14,788 — Take-home: $60,212 — Effective rate: 19.72%

Worked Example 2: Taxable Income of $150,000

A resident earning $150,000 pays:

$31,288 on the first $135,000
37% on $15,000 (the $135,001–$150,000 band) = $5,550
Base income tax: $36,838
Medicare Levy: 2% × $150,000 = $3,000
Total tax payable: $39,838 — Take-home: $110,162 — Effective rate: 26.56%

Non-Residents and Working Holiday Makers

Foreign residents pay a flat 30% on Australian-sourced income from $0 to $135,000 with no tax-free threshold, then 37% up to $190,000, and 45% above that. Working holiday makers (visa subclasses 417 and 462) pay 15% on the first $45,000, then standard marginal rates above that threshold, as detailed in the ATO working holiday maker guide. Neither group pays the Medicare Levy.

What Counts as Taxable Income?

Taxable income equals total assessable income — wages, salary, investment income, and business profits — minus allowable deductions. Common deductions include work-related expenses such as uniforms and tools, self-education costs directly tied to current employment, charitable donations to registered deductible gift recipients, and personal superannuation contributions. Reducing taxable income shifts liability to a lower bracket, amplifying the saving at higher marginal rates.

The Impact of Stage 3 Tax Cuts

The Stage 3 restructure cut the lowest positive marginal rate from 19% to 16% and broadened the 30% bracket ceiling from $120,000 to $135,000. A person earning $45,000 saves approximately $804 per year; someone on $100,000 saves around $2,179; and a $190,000 earner saves approximately $4,529 compared to the pre-July 2024 structure. Use this calculator tool to quantify the personal saving based on your exact taxable income.

Reference

Frequently asked questions

What are the income tax brackets in Australia for 2024-25?

For 2024-25, Australian resident tax brackets are: $0–$18,200 at 0%, $18,201–$45,000 at 16%, $45,001–$135,000 at 30%, $135,001–$190,000 at 37%, and over $190,000 at 45%. These brackets changed on 1 July 2024 under the Stage 3 tax cuts, reducing the previous 19% rate to 16% and broadening the 30% band's upper ceiling from $120,000 to $135,000, benefiting earners across the full income spectrum.

How is the Medicare Levy calculated in 2024-25?

The Medicare Levy equals 2% of taxable income for Australian residents. A resident earning $80,000 pays $1,600 as a Medicare Levy, in addition to their base income tax of $16,288, giving total tax of $17,888. The levy applies once income exceeds the low-income threshold (approximately $26,000 for singles in 2024-25). Those below this threshold may receive a full or partial exemption. Foreign residents and working holiday makers pay no Medicare Levy.

What is the tax-free threshold in Australia for 2024-25?

The tax-free threshold in Australia for 2024-25 remains $18,200, unchanged from the prior year. Australian resident individuals pay zero income tax on the first $18,200 of taxable income earned during the financial year. Non-residents are not entitled to this threshold and are taxed on every dollar of Australian-sourced income from $0, at a flat rate of 30% on income up to $135,000, then at higher marginal rates above that.

How do the Stage 3 tax cuts change my tax bill compared to 2023-24?

The Stage 3 tax cuts effective 1 July 2024 reduced the lowest marginal rate from 19% to 16% and expanded the 30% bracket's upper ceiling from $120,000 to $135,000. A person earning $45,000 saves approximately $804 per year. Someone on $100,000 saves around $2,179, and a $190,000 income earner saves approximately $4,529 annually compared to the 2023-24 structure. These savings are automatic — no action is required to claim them.

Do non-residents pay the same income tax rates as Australian residents?

No. For 2024-25, foreign residents pay 30% on Australian-sourced income from $0 to $135,000 with no tax-free threshold, 37% on $135,001–$190,000, and 45% above $190,000. Working holiday makers on visa subclass 417 or 462 pay a concessional rate of 15% on the first $45,000 of income, then standard marginal rates apply above that. Crucially, neither foreign residents nor working holiday makers are liable for the 2% Medicare Levy.

How can I legally reduce my taxable income in Australia?

Taxable income can be legitimately reduced through allowable deductions such as work-related expenses (uniforms, tools, and home-office costs), self-education expenses directly related to current employment, donations to registered deductible gift recipients, personal superannuation contributions under the concessional cap ($30,000 in 2024-25), and income protection insurance premiums. Each $1,000 in deductions reduces tax by $160 to $450 depending on the applicable marginal rate. Retain all supporting receipts and consult a registered tax agent for complex claims.