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.