Income Tax Calculator (Australia 2024-25)
Calculate your Australian income tax using the current 2024-25 tax brackets. See your tax payable, Medicare levy, and take-home pay. Updated with the Stage 3 tax cuts that took effect from 1 July 2024.
Medicare levy applies to Australian residents
How to Use This Calculator
1. Enter your gross annual income – Your total income before tax.
2. Select residency status – Different rates apply for residents vs non-residents.
3. Include Medicare levy – Toggle to add the 2% Medicare levy to your calculation.
4. View your results – See tax breakdown, effective rate, and take-home pay.
FAQs
Income Tax Questions
What are the Australian tax brackets for 2024-25?
For 2024-25, Australian residents pay: 0% on income up to $18,200, 16% from $18,201 to $45,000, 30% from $45,001 to $135,000, 37% from $135,001 to $190,000, and 45% on income over $190,000. Note: The stage 3 tax cuts took effect from 1 July 2024.
What is the Medicare levy?
The Medicare levy is 2% of your taxable income, funding Australia's public healthcare system. Low-income earners may qualify for a reduction or exemption. There's also a Medicare Levy Surcharge (1-1.5%) for higher earners without private hospital cover.
What's the difference between marginal and effective tax rate?
Your marginal tax rate is the rate you pay on your last dollar of income (your tax bracket). Your effective tax rate is the actual percentage of your total income that goes to tax. Due to progressive brackets, your effective rate is always lower than your marginal rate.
Do I need to lodge a tax return?
Most Australian residents who earn income must lodge a tax return. However, if your only income is from an employer who withheld tax, and you earned less than the tax-free threshold ($18,200), you may not need to lodge. Check with the ATO for your specific situation.
How can I reduce my taxable income?
Common ways to reduce taxable income include salary sacrificing into superannuation, claiming work-related deductions, making tax-deductible donations, and prepaying deductible expenses before June 30. Consult a tax professional for personalised advice.