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Income Tax Deductions Calculator Australia

Ranked strategies specific to your occupation — instant, private, free.

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Complete the form and click Calculate to see your full tax breakdown and strategy.

Tax deductions FAQ

How much income tax do I pay in Australia 2025–26?

Australian residents pay 0% on the first $18,200, 16% from $18,201–$45,000, 30% from $45,001–$135,000, 37% from $135,001–$190,000, and 45% above $190,000. These are the Stage 3 rates in force since 1 July 2024. The Low Income Tax Offset (LITO) of up to $700 further reduces tax for incomes under $66,667.

What is the tax-free threshold in Australia 2025–26?

The tax-free threshold is $18,200. With the Low Income Tax Offset (LITO), most Australians effectively pay no income tax until taxable income exceeds approximately $21,885.

What tax deductions can I claim in Australia?

Common ATO-approved deductions include: work-from-home expenses (70c/hr fixed rate), vehicle use (88c/km up to 5,000 km), self-education costs related to your current role, tools and equipment under $300 (immediate deduction), union fees, professional memberships, and investment property expenses. Use the calculator above to see profession-specific strategies ranked by dollar impact.

How is Medicare Levy calculated in Australia?

Medicare Levy is 2% of your taxable income. It phases in between $26,000 and $33,658 for single individuals. The Medicare Levy Surcharge (an additional 1–1.5%) applies if your income exceeds $101,000 (singles, 2025–26 threshold) and you do not hold private hospital cover.

What is salary sacrifice and how does it reduce tax?

Salary sacrifice directs pre-tax salary into superannuation as concessional contributions. These are taxed at 15% inside super instead of your marginal rate (up to 47%). The annual concessional cap is $30,000, which includes your employer's SGC contribution at 12.0%.

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