Australia Tax Calculator for Remote Workers

Calculate your 2025-26 take-home pay in Australia. The Australia tax system uses 4 income tax brackets ranging from 16% to 45%. Enter your income below to see your detailed breakdown in AUD.

Tax Calculator
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2025-26 Income Tax Brackets

Income RangeRate
Up to $26,80016%
$26,800 – $116,80030%
$116,800 – $171,80037%
Above $171,80045%

Standard deduction / tax-free amount: $18,200

How Taxes Work in Australia

Employee

FY 2025-26 (Stage 3 tax cuts). Tax-free threshold $18,200. Brackets: 16% to $45,000, 30% to $135,000, 37% to $190,000, 45% above. Medicare Levy 2% on all taxable income. Employer pays Superannuation (11.5%) on top of salary — not deducted from your pay. Low Income Tax Offset (LITO, up to $700) and Medicare Levy Surcharge (1-1.5%) not included.

Contractor

Sole trader / ABN holder. Same income tax brackets and tax-free threshold as employees. Medicare Levy 2%. Must fund own superannuation: 11.5% of income (voluntary but recommended), capped at ~$260,280/yr. LITO not included. GST obligations (if turnover exceeds $75,000) are separate from income tax.

Frequently Asked Questions

What are the 2025-26 income tax brackets in Australia?
Australia's Stage 3 tax cuts (effective 1 July 2024) set the brackets at: 0% on the first $18,200 (tax-free threshold), 16% from $18,201 to $45,000, 30% from $45,001 to $135,000, 37% from $135,001 to $190,000, and 45% above $190,000.
What is the Medicare Levy in Australia?
The Medicare Levy is a flat 2% tax on all taxable income with no cap. It funds Australia's public healthcare system. There is also a Medicare Levy Surcharge (1-1.5%) for higher earners without private health insurance, which is not included in this calculator.
How does superannuation work for employees vs contractors?
For employees, the employer pays 11.5% super on top of your salary — it does not reduce your take-home pay. Sole traders and contractors must self-fund their superannuation from their income (voluntary but strongly recommended for retirement savings), capped at the Maximum Super Contribution Base of ~$260,280/year.
Why is contractor take-home lower than employee take-home?
Contractors (sole traders) must fund their own superannuation at 11.5% of income, which comes directly out of their earnings. Employees receive super on top of their salary at no cost. This makes the contractor's effective cost 11.5% higher for the same gross income.
What is the Low Income Tax Offset (LITO)?
LITO provides up to $700 in tax relief for lower earners. It applies in full for taxable incomes up to $37,500, then phases out between $37,500 and $66,667. LITO is not included in this calculator — your actual tax may be lower if you qualify.

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