What changed in the 2026-27 tax brackets?

From 1 July 2026 the rate on income between $18,201 and $45,000 fell from 16% to 15%, worth up to $268 a year. The other resident brackets are unchanged: nil to $18,200, 30% from $45,001 to $135,000, 37% from $135,001 to $190,000 and 45% above $190,000. The 15% band drops again to 14% from 1 July 2027.

Does this include super?

No, input your salary excluding super. Employers pay superannuation guarantee, 12% of ordinary time earnings since 1 July 2025 and the final step of the legislated schedule, on top of your salary. Super contributions are taxed at 15% inside the super fund, not at your marginal rate.

What about the Medicare Levy Surcharge (MLS)?

The Medicare levy surcharge is an extra 1% to 1.5% charged on taxpayers without an appropriate level of private hospital cover. For 2026-27 it starts above $105,000 for singles and $210,000 for families (plus $1,500 for each dependent child after the first), rising to 1.25% above $123,000 / $246,000 and 1.5% above $164,000 / $328,000. Toggle private hospital cover off in the calculator to see it.

Can I model investment property loss against my salary?

Not directly here, use the property cashflow calculator. It models negative gearing properly: net rental loss reduces taxable income at your marginal rate, refunded via tax return. The cashflow calculator's 'after-tax cashflow' figure is what hits your bank account once the negative gearing benefit is applied.

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Q: How is HELP / HECS repayment calculated?

The ATO uses a marginal system. For 2026-27: nil below $69,528, 15% on the portion of your income between $69,529 and $129,717, $9,028 plus 17% on the portion between $129,718 and $186,050, then a flat 10% of total repayment income above $186,050. Repayments are withheld via PAYG and reconciled at tax time. Check the ATO's study and training loan repayment page for the binding figures.

Australian Tax Office FY 2026-27 resident brackets, the low income tax offset, the 2% Medicare levy with its low-income phase-in, the Medicare levy surcharge and optional HELP/HECS repayment.

Annual gross salary$

Before tax. Excludes super (super is on top).

HELP / HECS debt

Toggle if you have a student loan to repay.

Household

Family or sole parent uses the higher Medicare levy and surcharge thresholds. Your salary is also used as the family income for those tests.

Private hospital cover

Without an appropriate level of hospital cover for the full year the Medicare levy surcharge applies above the income thresholds.

Take-home: $74,080 / year

Take-home pay

$74,080

Or $6,173/month · $2,849/fortnight · $1,425/week.

Income tax

$19,020

Resident tax brackets, FY 2026-27.

Medicare levy

$1,900

2% of taxable income above the low-income threshold.

Total tax + levies

$20,920

Effective rate 22.02%.

Marginal tax rate

30%

Rate that applies to your next dollar earned, before levies.

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FY 2026-27 tax brackets

Rates current as at FY 2026-27. From 1 July 2026 the rate on income between $18,201 and $45,000 fell from 16% to 15%; it falls again to 14% from 1 July 2027. The resident brackets for the full FY 2026-27:

$0 to $18,200: nil. The tax-free threshold.
$18,201 to $45,000: 15% on each dollar over $18,200.
$45,001 to $135,000: $4,020 plus 30% on each dollar over $45,000.
$135,001 to $190,000: $31,020 plus 37% on each dollar over $135,000.
$190,001+: $51,370 plus 45% on each dollar over $190,000.

Low income tax offset of up to $700 is applied automatically: the full amount to $37,500, reducing by 5c per dollar to $45,000, then by 1.5c per dollar until it runs out at $66,667. It can only reduce tax to zero, it is not refunded.

Medicare levy is 2% of taxable income. Below $28,011 (single) or $47,238 (family, plus $4,338per dependent child) no levy is payable, and between the lower and upper thresholds it phases in at 10c for each dollar over the lower threshold. The thresholds are the ATO’s latest published figures (2025-26), indexed each year.

Medicare levy surcharge applies without an appropriate level of private hospital cover: 1% above $105,000 single or $210,000 family, 1.25% above $123,000 / $246,000, and 1.5% above $164,000 / $328,000(family thresholds rise by $1,500 for each dependent child after the first). The ATO tests surcharge income, which also counts reportable fringe benefits and super contributions; this calculator uses salary only.

HELP / HECS repayment is income-contingent. For FY 2026-27the ATO’s marginal system charges nil below $69,528, 15% of the portion between $69,529 and $129,717, $9,028 plus 17% of the portion between $129,718 and $186,050, then a flat 10% of total repayment income above $186,050. Repayments are withheld via PAYG.

Not modelled: salary sacrifice into super, Division 293 tax (an extra 15% on concessional super contributions once income plus contributions passes $250,000), negative-gearing offsets from rental losses, the private health insurance rebate, the seniors and pensioners tax offset, and foreign-resident brackets. Employer super is paid on top of salary at the 12% superannuation guarantee rate. Use a registered tax adviser for anything that turns on those rules.

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Important: This calculator provides an estimate only and does not constitute credit advice. Actual rates, repayments, fees and approval are subject to lender policy and your individual circumstances. Comparison rates are based on a $150,000 loan over 25 years on a secured basis, see footer for the full disclaimer.