Australia Salary Calculator

Summary

Enter your employment income into the salary calculator above to estimate how taxes in Australia may affect your finances. You'll then get your estimated take home pay, an estimated breakdown of your potential tax liability, and a quick summary down here so you can have a better idea of what to possibly expect when planning your budget.

This salary calculator also works as an income tax calculator for Australia, as it shows you how much income tax you have to pay based on your salary and personal details.

To learn more about Australia, its income tax, and tax brackets, so that you can get a deeper understanding of how your budget and finances may be affected, scroll down to the detail section below!

Frequently Asked Questions

What is the income tax rate in Australia?

The individual income tax rate in Australia is progressive and ranges from 0% to 45% depending on your income for residents while it ranges from 32.5% to 45% for non-residents. This income tax calculator can help estimate your average income tax rate and your take home pay.

How many income tax brackets are there in Australia?

The income tax system in Australia has five different tax brackets for residents and three different tax brackets for non-residents. For more details, check out our detail section.

Australia Income Tax Brackets and Other Information

First off, it's important to note that the tax year is unique in Australia since it runs from July to June as opposed to running from January to December in most parts of the world. With that said, tax season in Australia runs from July 1st to October 31st as opposed to being at the start of the calendar year.

The personal income tax system in Australia is a progressive tax system. This means that your income is split into multiple brackets where lower brackets are taxed at lower rates and higher brackets are taxed at higher rates. The tax brackets are different between residents and non-residents. For residents, tax rates range from 0% to 45%.

Non-residents, on the other hand, are not eligible for the two lowest tax brackets and as a result, face much higher tax with rates that range from 32.5% to 45%.

However, there is some relief for non-residents classified as working holiday makers with their first $45,000 taxed at a lower rate of 15%.

A standard tax credit exists in the form of the low income tax offset (LITO). This can help to directly lower your income tax and its value varies based on your income while being completely phased out for those earning over $66,667. In other words, those earning over this threshold are ineligible for this tax credit. Additionally, this is for resident taxpayers only. Non-residents do not have access to it.

Note that the related low and middle income tax offset (LMITO) no longer exists with the 2022-2023 tax year. The last period this was active was the previous 2021-2022 tax year.

Social Security in Australia

There are technically no social security taxes in Australia, per se, but there is a medicare levy with a contribution rate of 2% imposed on residents taxpayers. Non-residents are exempt and are not required to contribute. Other exceptions exist and include such things as low income earners not having to contribute and slightly higher rates for high income earners depending on their health insurance situation.

Many companies and individuals also participate in superannuation entities and retirement savings accounts (RSAs), but contributions to these are not manadatory for employees. The tax rules surrounding these elements are highly complex. One notable aspect is that voluntary contributions are tax deductible.

Resident status and income tax in Australia

Resident taxpayers are subject to tax on worldwide income while non-resident taxpayers are subject to tax only on income derived from sources within Australia.

Individuals can be considered residents according to several definitions. One is having domicile in Australia. Another is being in Australia for at least 183 days in a year. Many exceptions exist for classifying as a non-resident and some of them include having a permanent place of abode overseas or having a usual place of abode overseas with no intention of residing in Australia.