Free Australian Income Tax Calculator

Overview

This Australian income tax calculator offers a reliable ATO tax estimator to compute your tax payable and net take‑home pay for the 2024‑25 financial year. It applies the latest marginal tax rates, brackets, and the Low Income Tax Offset (LITO), making it a complete income tax Australia 2025 planning tool. Whether you are a salaried employee or a couple, you can quickly see your marginal tax rate Australia and estimate your after‑tax income. The tool also functions as a take home pay calculator Australia, helping you budget accurately.

The calculator is built around the government’s Personal Income Tax Plan, which was announced in 2018 and unfolds in three stages. Stage 1 took effect in 2018‑19, Stage 2 was accelerated to 2020‑21, and Stage 3 started on 1 July 2024. By selecting different financial years, you can compare your tax obligation before and after each stage, revealing the total tax savings the plan delivers.

Key Concepts

Taxable income is the starting point for all calculations. It equals your assessable income (the total amount you receive from sources such as salary, wages, tips, bonuses, commissions, parental leave pay, interest, dividends, rental income, and crowdfunding) minus the deductions you are allowed to claim. Common deductions include work‑related expenses (vehicle use, home office costs, internet and phone plans, clothing and laundry), charitable donations, and professional development expenses. Because these items vary by individual, the calculator asks you to supply your taxable income directly.

Marginal tax rates operate in brackets. For example, under Stage 3, earning $60,000 means the first$18,200 is tax‑free; the next $26,800 (from$18,201 to $45,000) is taxed at 19$15,000 (from $45,001 to$60,000) is taxed at 30%. Your marginal rate is 30% (the highest bracket you reach), but your effective rate is total tax divided by income.

Tax offsets are subtracted from the tax you owe after calculating with the brackets. The most important ongoing offset is LITO. The temporary LMITO is no longer available but can be seen in historical results. Offsets are non‑refundable, so they can reduce tax to zero but not create a refund.

Current Tax Rates – Stage 3 (2024‑25 onwards)

From 1 July 2024, the following tax brackets apply:

Taxable income	Tax on this income
$0 –$18,200	$0
$18,201 –$45,000	19¢ for each $1 over$18,200
$45,001 –$200,000	$5,092 plus 30¢ for each$1 over $45,000
$200,001 and over	$51,592 plus 45¢ for each$1 over $200,000

For manual calculations, use these formulas (amounts in AUD):

$$\begin{aligned} 0 – 18,\!200 &: \text{tax} = 0 \\ 18,\!201 – 45,\!000 &: \text{tax} = 0.19 \times (\text{income} - 18,\!200) \\ 45,\!001 – 200,\!000 &: \text{tax} = 5,\!092 + 0.30 \times (\text{income} - 45,\!000) \\ 200,\!001^+ &: \text{tax} = 51,\!592 + 0.45 \times (\text{income} - 200,\!000) \end{aligned}$$

Historical Tax Rates – Stage 2 (2020‑21 to 2023‑24)

Before Stage 3, the tax brackets were:

Taxable income	Tax rate
$0 –$18,200	0%
$18,201 –$45,000	19%
$45,001 –$120,000	32.5%
$120,001 –$180,000	37%
$180,001+	45%

The hand‑calculation formulas for Stage 2 are:

$$\begin{aligned} 0 – 18,\!200 &: 0 \\ 18,\!201 – 45,\!000 &: 0.19 \times (\text{income} - 18,\!200) \\ 45,\!001 – 120,\!000 &: 5,\!092 + 0.325 \times (\text{income} - 45,\!000) \\ 120,\!001 – 180,\!000 &: 29,\!467 + 0.37 \times (\text{income} - 120,\!000) \\ 180,\!001^+ &: 51,\!666 + 0.45 \times (\text{income} - 180,\!000) \end{aligned}$$

Low Income Tax Offset (LITO)

The LITO reduces tax for low‑income earners. The amount for 2024‑25 is:

Taxable income	LITO amount
Up to $37,500	$700
$37,501 –$45,000	$700 - 0.05 \times (\text{income} - 37,\!000)$
$45,001 –$66,667	$325 - 0.015 \times (\text{income} - 45,\!000)$
Over $66,667	$0

The offset is automatically applied by the ATO. The calculator shows how much LITO you receive and includes it in the final tax payable.

Low and Middle Income Tax Offset (LMITO) – Ended

For tax years 2018‑19 to 2020‑21, the LMITO provided additional relief. It has now expired, but the calculator can still display its effect when you select those years. The maximum offset was $1,080 for incomes between$48,000 and $90,000; the full phase‑out schedule is:

Taxable income	LMITO amount
Up to $37,000	Up to $255
$37,001 –$48,000	$255 + 0.075 \times (\text{income} - 37,\!000)$
$48,001 –$90,000	$1,080
$90,001 –$126,000	$1,080 - 0.03 \times (\text{income} - 90,\!000)$
Over $126,000	$0

Using the Calculator

Start by selecting either single or couple mode. For a single person, enter your taxable income. For a couple, enter any two of: your income, your partner’s income, or your joint income. The calculator then displays:

• A graph of your income tax for each year from 2017‑18 through 2024‑25.
• The annual tax savings (or increase) relative to the pre‑plan year (2017‑18).
• A breakdown showing tax before offsets, applied offsets, and final tax.

Switch from Summary to Details to see the full calculation: your marginal rate, tax before offsets, LITO, LMITO (if applicable), and final payable. Two additional plots are available: one shows what your tax would be if offsets were not applied, allowing you to measure the impact of LITO and LMITO; another displays your marginal rate across years. The chart also plots your effective tax rate across years.

Worked Examples

The following examples illustrate the calculations using both current and historical rules.

Example 1 – Stage 3 (2024‑25), taxable income $35,000

$$\text{Tax before offsets} = 19\% \times (35000 - 18200) = 3192$$ $$\text{LITO} = 700 \quad (\text{income is below } 37500)$$ $$\text{Final tax} = 3192 - 700 = 2492$$

Net take‑home pay (ignoring Medicare levy): $35,000 –$2,492 = $32,508.

Example 2 – Stage 3 (2024‑25), taxable income $60,000

$$\text{Tax before offsets} = 5092 + 30\% \times (60000 - 45000) = 5092 + 4500 = 9592$$ $$\text{LITO} = 325 - 1.5\% \times (60000 - 45000) = 325 - 225 = 100$$ $$\text{Final tax} = 9592 - 100 = 9492$$

Net take‑home pay: $60,000 –$9,492 = $50,508.

Example 3 – Stage 2 (2020‑21) with LMITO, taxable income $60,000

$$\text{Tax before offsets} = 5092 + 32.5\% \times (60000 - 45000) = 5092 + 4875 = 9967$$ $$\text{LITO} = 100 \quad (\text{same calculation as above})$$ $$\text{LMITO} = 1080 \quad (\text{full amount, as income } 48001-90000)$$ $$\text{Final tax} = 9967 - 100 - 1080 = 8787$$

Comparing Examples 2 and 3 shows how the expiry of LMITO affects the net tax despite the lower Stage 3 marginal rates.

Important Notes

• Medicare levy: The calculator does not include the Medicare levy (normally 2% of taxable income). You need to add this separately for a complete tax bill.
• Non‑refundable offsets: LITO and LMITO (when applicable) can reduce your tax to $0 but cannot generate a refund.
• Couples: In Australia, each individual is taxed independently. The tool sums the two individual taxes to show the couple’s total.