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Canstar’s Income Tax Calculator calculates the tax payable on gross wages paid in equal weekly amounts. The rates are obtained from the Australian Taxation Office (ATO). No allowance is made for tax deductions, Medicare, or other levies and/or payments.

What is income tax?

Income tax is the tax you pay to the Australian Government on income you’ve earned from your job or investments, such as shares and Exchange Traded Funds (ETFs). How much income tax you pay will depend on what you earn in a financial year—from 1 July one year to 30 June the next year—and any tax deductions or tax offsets you claim for that time.

How is income tax calculated?

How much income tax you pay is calculated based on your total taxable income and your tax rate, which can depend on factors like your residency status. Australia’s progressive tax system means that if you earn more, you’ll probably need to pay more in tax.

If you’re an Australian resident for tax purposes, you’ll be taxed on your worldwide income (from Australia and overseas) each financial year. This includes salary and wages, tips and gratuities, bonuses, commissions, pensions, rent from investment properties, overtime payments, work allowances, and interest from transaction and savings accounts.

How do I calculate my income tax?

Canstar has an income tax calculator (above) that can help you to work out your approximate income tax for the current financial year. The calculator estimates the tax payable on gross wages paid in equal weekly amounts. The rates are obtained from the Australian Taxation Office (ATO). No allowance is made for tax deductions, Medicare, or other levies and payments.

What are the income tax rates?

These are the income tax rates and brackets for the 2025-26 financial year for Australian residents:

Australian income tax rates 2025–2026

Source: ATO, February 2026. Note: The rates in the above tables do not include the Medicare levy.

What is taxable income?

Your taxable income is the amount left after you claim deductions. Certain expenses, like costs related to working from home, purchasing equipment you use for work, union fees, and charitable donations, can be claimed as deductions and may help reduce the amount of income you pay tax on.

How much do I have to earn to pay income tax?

You have to pay income tax on every dollar you earn over the tax-free threshold, which is $18,200 at the time of writing. If you earn less than $18,200, you won’t have to pay income tax. In addition to the rates in the table above, most taxpayers are also charged a Medicare levy of 2%.

How much income tax do I need to pay?

This will depend on factors such as your residency status, taxable income, and the tax rate and bracket that apply to you. When you complete a tax return, the ATO will determine whether you’ve paid too much or too little in tax in a given year and either return the excess or ask you to pay more. If you’re an employee, it’s likely that your employer would have set aside a portion of your wages throughout the year to go towards income tax.

What is a tax return?

A tax return is a form you can complete online or by paper that details things like your income, any tax you may have already paid, and any deductions you’re claiming for the financial year. The form is submitted to the ATO, which uses the information to determine how much tax you should have paid. Your tax return can help make sure you get a refund if you’ve paid too much tax during the year or let you know if you owe any extra tax.

Do I need to do a tax return?

The ATO says there are several reasons why you may need to submit a tax return. For example, if you’ve earned more than the tax-free threshold and had tax deducted from any of your income, earned any foreign income, pay or receive child support, or had business or investment income. Seek professional tax advice if you’re not sure whether you should lodge a return, or you can use the ATO’s online tool: Do I need to lodge a tax return?

How do I submit a tax return?

You can lodge a tax return online with the ATO via the myGov portal or through a tax agent. It’s also possible to lodge a return via a paper form but this process may take longer. The ATO generally prefers to deliver refunds electronically and will only make payments into Australian bank accounts.

How much tax will I get back?

You may or may not get some money back after completing and lodging your tax return. Your income tax bracket applicable for the financial year, as well as any deductions you apply for, are considered as part of your tax assessment. This assessment determines whether or not you’re eligible for a tax refund.

What can I do to boost my tax return?

There are a number of ways you may be able to claim a tax deduction to help boost your tax return, such as claiming deductions for eligible work-related expenses, gifts or donations made to eligible charities, union and professional membership fees, and income protection insurance premiums. Plus, you may be eligible for tax offsets, such as the Low Income Tax Offset (LITO) or Seniors and Pensioners Tax Offset (SAPTO). You may also want to seek professional tax advice to help with your tax return.

What tax deadlines apply?

Tax return deadlines are usually determined by your filing method. Individuals who manage their own tax returns typically follow a standard annual deadline. For the 2025-26 financial year, this is October 31, 2026. Those who use a registered tax agent may be eligible for extended lodgement schedules.

If a tax debt is owed, the payment deadline is generally linked to the date the return was lodged or the date the formal Notice of Assessment is issued by the ATO. Similar structures apply to business obligations, including Business Activity Statements (BAS) and Fringe Benefits Tax (FBT), where specific reporting cycles dictate when payments must be finalised.

To avoid potential interest charges, it’s important to confirm the exact due dates applicable to your specific circumstances via the ATO or a qualified tax professional.

How can I keep track of tax due dates?

If you’re an individual taxpayer, small business owner, or even a trustee of a self-managed super fund (SMSF), you may consider visiting the ATO website or downloading the ATO app—as it features a key dates tool.

Content updated 2 June 2026

The information on this page and site is general information only and should not be used as the basis for any tax-related decision making. Please discuss your personal situation with a registered tax agent or other qualified tax adviser.

About the author

As a Finance Writer, Nick provides assistance to Canstar’s Editorial Team in its mission to empower consumers to take control of their finances. He has written hundreds of articles for Canstar across all key finance topics.

Coming from a screenwriting background, Nick completed a Bachelor of Film, Television and New Media Production from Queensland University of Technology. Nick has also completed RG 146 (Tier 1), making him compliant to provide general advice for general insurance products like car, home, travel and health insurance, as well as giving him knowledge of investment options such as shares, derivatives, futures, managed investments, currencies and commodities.

Nick’s role at Canstar allows him to combine his love of the written word with his interest in finance, having learned the art of share trading from his late grandfather. Nick strives to deliver clear and straightforward content that helps the everyday consumer navigating the world of finance. Nick is also working on a TV series in his spare time. You can connect with Nick on LinkedIn.

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This page has been reviewed by our Finance Editor Brooke Cooper as part of our fact-checking process.